TAX DEDUCTION AT SOURCE
• The Central Board of Direct Taxes has notified the new provision of Tax Deducted at Source [“TDS”] on
immovable property. The Finance Act 2013 had imposed that purchaser of an immovable property (any
land or building other than agricultural land) costing Rs. 50 lakh or more is required to pay a
withholding tax. The rate at which the tax is to be deducted is 1%. The amendment is effective from
June 1, 2013. The new provision has been introduced by adding Section 194IA. The major objective
behind the introduction of the new section is to track real estate transactions that are not being
registered.
• With respect to the payments made prior to 1st June 2013,
2013 the view expressed by E & Y is that,
that such
payments shall not be subjected to 1% TDS deduction as of now. However our internal auditor is of
the view that, even payments made prior to 1st June 2013 may also attract 1% TDS which has to be
remitted at the time of registration.
registration This issue shall be addressed as and when the issue arises.
arises
• This document details the process to be followed by the client for filing the TDS as well as documents
to be provided to the Developer / vendor.
• For any clarifications please write to us at crm@[Link]
Process Flow - TDS
Challan to be Register on
TDS
filed before TRACES for
deduction – Copy of E-TDS to be
the 7th of the TDS certificate
1% deducted payment filed every
Successive (Payment Issue signed
on overall acknowledged quarter (Form
month of made would TDS certificate
amount
amount, Challan to be 26 QB))
payment be reflected to DivyaSree
forwarded to
on traces (Refer slide 8)
(Refer Slide DivyaSree
within 15-20
4,5,6 & 7) working days)
Register on
TRACES for
Challan to be Copy of
TDS certificate
TDS deducted filed before payment E-TDS to be
(Payment Issue signed
- Rs. 3452.82 the 7th of the acknowledged filed every
made would TDS certificate
(1% of Successive Challan to be quarter (Form
be reflected on to DIPPL
Rs.345282) month of forwarded to 26 QB)
traces within
payment DS
15-20 working
days)
• w e b s i t e ( [Link]
Online
O li paymentt off •)Individual Login-with PAN No
TDS through challan
cum statement in
form 26QB
• The generated challan needs to be shared
Challan to be shared
with the BUILDER before the 7th of the
with BUILDER successive month of payment made.
• Quaterly TDS Certificate to be shared with the
BUILDER
• Register on TRACES for TDS certificate(Form
TDS CERTIFICATE 16 B).
• Payment made would be reflected on traces
within 15-20 working days
Filing for Challan
E-payment of taxes at subsequent date will be linked to the FORM 26QB based on Acknowledgement
number generated at the time of filing of Form 26QB.
Tax so deducted should be deposited to the Government account through any of the authorised bank
branches using e-Tax payment option available at NSDL E-payment within a period of 7 days from the end
of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in
Form No. 26QB
PAYMENT THROUGH e-TAX PAYMENT OPTION IMMEDIATELY
E-Payment facilitates payment of taxes online by taxpayers. To avail this facility the taxpayer is required to
have a net-banking account with any of the Authorized Banks. Please follow the steps as under to pay tax
online:-
Step 1
a) Log on to Income Tax website ([Link] )
b) .Click on the option "E-Pay Tax" - follow with "New Payment“.
c) Select Form for Payment of 26 QB (TDS on Sale of Property)
If Seller is a company (0020) Income Tax on companies (CORPORATION TAX) or
And ((800) TDS on SALE OF PROPERTY)
Divyasree Email Id: [Link]@[Link]
Divyasree Mobile no: 9900248401
Step 2:
After selecting the form you will be directed to the screen for entering certain information.
Example:-
• Mention PAN of Transferee/Buyer:
• Mention PAN of Transferor /Seller: AADCD3654M
• Re Enter PAN of Transferee/Buyer:
• Re Enter PAN of Transferor /Seller: AADCD3654M
• Provide Complete address of Transferee/Buyer: (YOUR PRESENT ADDRESS)
• Provide Complete address of Transferor/Seller:
DivyaSree Chambers, A Wing, No. 11, O Shaugnessy Road, Bangalore-560025
• Enter type of property: (Apartments, Flats, Villas etc)
• Provide address of Property transferred:
Yemlur Main Road, Bangalore-560037
• Mention the date of Agreement/Booking of Property: E-stamp date
• Mention the Total value of consideration(Property Value): Full value of the Apartment Excluding GST
• Mention if the above payment is done in lump sum or in installments. : Installment
•Please enter the TDS rate( Tax rate at which the TDS was deducted by the purchaser at the time of
purchase of the property – 1%
•Please enter the TDS amount to be paid (amount deducted by the purchaser at the time of purchase of
the property
Contd…
• Dates of payment/credit, deduction : Current Date
• Select the option for “Payment of taxes immediately” : Immediately
It is important to ensure that PAN of Buyer and Seller are correctly mentioned in the form. There is no
online mechanism for subsequent rectification. Deductor will have to approach the Assessing Officer or
CPC-TDS for rectification of errors.
Step 3
After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In
case PAN is not available in the database of the Income Tax Department then you cannot proceed with the
payment of tax. If PAN is available then TIN system will display the contents you have entered along with
the “Name” appearing in the ITD database with respect the PAN entered by you.
Step 4
You can now verify the details entered by you. In case you have made a mistake in data entry, click on
“EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button.
Nine digit alpha numeric ACK no. will be generated and you will be directed to the net-banking site
provided by you.
Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to
verify the name before making payment. In case any discrepancy is observed, please confirm the PAN
entered by you. Any change required in the name displayed as per the PAN Master can be updated by
filling up the relevant change request forms for PAN. If the name is correct, then click on "Confirm"
Step 5
After confirmation an option will be provided for submitting to Bank. On clicking on Submit to Bank
deductor will have to login to the net-banking site with the user ID/ password provided by the bank
for net-banking purpose and enter payment details at the bank site.
On successful
O f l paymentt a challan
h ll counterfoil
t f il will
ill be
b displayed
di l d containing
t i i CIN,
CIN paymentt details
d t il and
d
bank name through which e-payment has been made. This counterfoil is proof of payment
being made.
Traces
TDS Reconciliation Analysis and Correction Enabling System
TRACES is a web-based application of the Income Tax Department that provides an interface to all
stakeholders associated with TDS administration. It enables viewing of challan status, downloading of
Conso File, Justification Report and Form 16 / 16A as well as viewing of annual tax credit statements
(Form 26AS). TRACES enables a PAN holder to register and view tax credit (Form 26AS) online.
Form 16B:
Buyer of immovable property can download Form 16B after registering on TRACES as Tax Payer.
Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of
property) in respect of the taxes deducted and deposited into the Government Account.
Form 16B will be available for download from the website of Centralized Processing Cell of TDS (CPC-TDS)
[Link]