House purchaser: Do not forget to file Form 26QB
This article is for who purchase any property* (immovable viz, House) for more than or equal to Rs. 50 lakh.
Suppose,
-Mr A purchase a house (or any other immovable property) from Mr. B,
-Sale price is fixed as Rs. 50 Lakh (or more than 50 Lakh, say Rs. 2.50 crore),
-Mr. A will make the payment of Rs. 50 Lakh (or more than Rs. 50 Lakh, say Rs. 2.50 crore) to Mr. B,
- At the time of making the payment,
- Mr. A will deduct 1% of the sale amount (1% of Rs. 50 Lakh/2.50 crore, as per above example),
- Mr A can ask PAN of the Mr B,
- And will deposit this 1% (amount deducted) to Government through authorized Bank branches ( list :- https://www.tin-nsdl.com/authorized-banks.html)/or himself through online banking,
- Within 30 days from the month, in which deduction is made (or sale amount is paid to the seller),
- After this, Mr. A may issue form 16B (available for download at www.tdscpc.gov.in after payment) to Mr. B,
-Stating amount deducted and paid to the Government (for taking Tax Credit by Mr. B).
Here, the noting point is that liability to deduct 1% of the sale amount and pay to Government is of purchaser (Mr. A) and not the of the seller (Mr. B).
After the deduction Mr. A has to furnish the information online (in form 26QB) at site www.tin-nsdl.com
* Property excludes Rural Agriculture Land.
*Property includes any under construction property also.
Now suppose that house was in the joint names of Mr. B and Mrs C and Mr D and Mr. A purchased the house.
Then form 26QB has to be filed for each unique Buyer Seller transaction.
(Mr A ------Mr B)
(Mr A ----- Mrs C)
(Mr A -----Mr D)
Hence 3 form 26QB.
Mr. A and Mr. B purchased house from Mr. C and Mr. D (for Rs. 51 Lakh)
(Mr. A ---- Mr. C)
(Mr. B ---- Mr. C)
(Mr. A ----Mr. D)
(Mr. B ---- Mr. D)
Hence four form 26 QB have to be filed.
- If form 26QB not filed within 30 days, fee will be levied.
Step by Step Guide to file form 26QB:
Step 1
- Log on to NSDL e-Gov -TIN website (www.tin-nsdl.com).
- Click on the option “Furnish TDS on property”.
- Select Form for Payment of TDS on purchase of Property.
Step 2:
After selecting the form you will be directed to the screen for entering certain information.
Example:-
a) Permanent Account Number (PAN) of Property Purchaser and Seller.
b) Address of the Purchaser, Seller as well as the Property being purchased
c) Financial/ Assessment Year will be populated on the basis of Date of Payment/Credit selected in the Form.
d) Major Head Code - To indicate the type of tax applicable viz; Tax on companies/Tax on other than companies
e) Value of Property
f) Date of agreement/booking
g) Amount Paid/credited (Transaction amount)
h) Rate of TDS
i) TDS Amount
j) Dates of payment/credit, deduction
k) Select the option for “Payment of taxes on Subsequent Date”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 provided with an option to print an Acknowledgment slip.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
With the printout of the Acknowledgment slip, you may visit any of the authorized Bank branches to make the payment of TDS subsequently. The Bank will make the payment through its net banking facility and provide you the Challan counterfoil as acknowledgment for payment of taxes.
Based on the information in the Acknowledgment slip, the bank will make the payment only through net-banking facility by visiting tin-nsdl.com and entering the acknowledgement number duly generated by TIN for the statement already filled by the buyer in respect of that transaction.
In case you desire to make the payment through e-tax payment (net banking account) subsequently, you may access the link “E-tax on subsequent date” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided an option to submit to the bank wherein you have to select the Bank through which you desire to make the payment.
You will be taken to the net banking login screen wherein you can make the payment online.offline Form:https://onlineservices.tin.egov-nsdl.com/etaxnew/PopServletOffline
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