How can I pay TDS online for property purchase?

TDS stands for Tax Deducted at Source. At the time of purchasing property, the buyer is liable to deduct TDS from buying price and pay TDS to Income Tax Department.

Who Pays TDS:

As per the government regulation, the buyer responsible to deduct the TDS and not the seller. If the buyer does not discharge this duty of TDS payment, buyer can be penalized for non-payment.

TDS rate:

1% TDS is applicable if property purchase value or guidance value is more than Rs. 50 Lakhs, whichever is higher. TDS on purchase of property is applicable for residential property, commercial property and land. But this does not include agricultural land.

TDS for NRIs is different because the government deducts capital gains and TDS for NRIs. Below is the TDS rate for NRIs

When to pay TDS:

Buyer need to pay the TDS on or before registering the sale deed, as the registering officer verifies the TDS challan before proceeding sale deed registration, also It is important to mention TDS Challan number in sale deed before registration.

Details required to pay TDS:

TDS payment on purchase of property, the buyer does not require a TAN. When filling the Form 26QB, you will need to submit the names, addresses, PAN, phone number and email id of both the buyer and the seller.

You will need to submit the complete address of schedule property (to be purchased), the date of the agreement, the date of the payment, and the buying price. You can make the TDS payment online via net banking or deposit cash/cheque at the bank. If there is more than one buyer or seller, you need to furnish the details of each party in Form 26QB

Here is the step-by-step procedure to pay TDS Online:

Open the website e-Filing Home Page, Income Tax Department, Government of India

The login page looks like below image. Log in using your PAN Number (Your PAN Number is your user ID)

In the menu: click on e-File and click on e-Pay Tax in dropdown. Refer to below image

In e-Pay Tax: Click on + New Payment. refer to the marking in below image

In 26 QB (TDS on Sale of Property): Click on Proceed. Refer to the marking in below image.

26QB has four pages, they are

1. Buyer Detail

2. Seller Details

3. Property Transferred Details

4. Payment Details

Below, we explained each page systematically

1 Buyer Details:

• Residential Status of Seller

  • If seller is an India Citizen, Select Resident

  • If seller is an NRI, Select Non-Resident

• Your Pan Number, name, address and contact number pop up automatically (or enter the incomplete info). Refer to below image.

Whether more than one Buyer: Select Yes if more than one Buyer or Select No

Click on Continue

2. Seller Details: Enter the following information of seller’s

• PAN Number

• Aadhaar Number

• Name

• Address

• Mobile Number

• Email ID

• Whether more than one Seller: Select Yes if more than one seller or Select No

Refer to below image.

3. Property Transferred Details:

• Type of property: I am buying a flat in Apartment so I selected Building (Shops, Apartments, Flats, Bungalows, etc.) or select Land

• Address: Enter the property address you are buying

• Date of Agreement/Booking: Select the date of sale agreement signed or select the date of token advance or down payment made

• Total Value of Consideration (Property Value): Enter the buying price

• Date of Payment/ Credit made to Seller: Seller the date of your final payment to the seller (If you obtained the home loan, select the date mentioned in Bank’s cheque. Date should be present date or past date. Cannot be future date)

• Payment type: Select Lumpsum if you made the payment to seller in one single payment or select Installment

• Whether it is last installment: Select Yes

• Whether stamp duty value is higher than sale consideration? : Select No if your buying price is more than government value or guidance value of a property or Select Yes (Usually buying price is more than Government value so I selected No, you can check the government value of a property in your area sub-registrar office)

• Amount paid/credited currently: Type your buying price

• Total stamp duty value of the property: Type the stamp duty value of the property (In Bangalore, the stamp duty to register a flat is 5.1% of buying price so I typed Rs.2,65,200 which is 5.1% of Rs. 52,00,000)

Refer to the below-filled image.

Click on Continue

4. Payment Details

We have options to pay through Net banking, Debit Card, Pay at Bank Counter, RTGS/NEFT. Refer to below image

Below is the image of the payment page.

After the payment, the page directs you to download the TDS Challan. The TDS Challan looks like below image

This completes the procedure to pay TDS for property purchase.

We provide assistance to generate TDS challan. To opt for our service, please Whatsapp to + 9 1 - 9 7 4 2 4 7 9 0 2 0.

Thank you for reading…

Note: This answer was last updated on May 7 2023.