• What is TDS and TDS on sale of a property?
  • Requirements for TDS deduction on sale of property
  • Paying TDS through form 26QB and obtaining form 16B
  • TDS on sale of the property to NRI
  • Conclusion

What is TDS?

TDS is contracted for charge deducted at source. As indicated by the Income Tax Act 1961, if any installment is made over the constraints of the sum set by the administration, at that point the individual is at risk to pay TDS. The TDS rates are set by the administration and must be paid by the Income Tax chunk rates. No TDS must be put together by the HUF or any people.

In any case, on account of rents, the HUF and people are at risk to make installments when the lease sum is more than ₹50,000/month at the pace of 5%. What’s more, for this situation, they need not have their TAN (Tax Deduction and Collection Amount).

Furthermore, in the event that, your pay is not exactly the breaking point set by the administration, structure 15G and structure 15H can be submitted to the bank so no TDS sum is deducted from your salary. In the event that, you couldn’t present the archives, an arrival alongside the personal duty proclamation can be given to the bank to get the discount sum. The TDS can be stored on the administration entryway through Challan ITNS-281.

Kinds of TDS

There are chiefly two kinds of TDS declaration, to be specific:

Yearly TDS authentication: This endorsement is given every year for the TDS on pay. The TDS authentication is additionally named as structure 16, and for the representatives having a pay not as much as Rs. 2,50,000, TDS isn’t appropriate.

Quarterly TDS authentication: This endorsement is given on the pay separated from pay. This TDS authentication goes under structure 16A, and the TDS sum is deducted from the premium that is given by the banks.

What is TDS on special of a property?

Under segment 194A, any individual buying a property of in excess of 50 lacs needs to pay 1% TDS on special of a property. TDS on the offer of unfaltering property was brought into impact on first July 2013 by the fund serve with the sole rationale of evacuating dark promoting and defilement in the land business, and getting straightforwardness the procedure of TDS at a bargain of a property. This likewise focuses on the total evacuation of the association of any outsider to cover the charges.

The TDS on the offer of steadfast property must be paid on the web or disconnected through structure 26QB and further structure 16B must be submitted to the merchant as an archived evidence of the TDS installment and derivations.

Necessities for TDS finding at a bargain of property

Under segment 194IA, certain things must be thought of while documenting the TDS on the offer of resolute property. These include:

1% of the aggregate sum (e.g., ₹70,000 for 70 lacs) must be deducted by the purchaser.

No TDS sum will be deducted when the business sum is under 50 lacs.

According to the association spending plan 2019, all the extra charges including stopping expense, power expense or participation charge, must be remembered for the TDS finding marked down of the property, for the deals of the steadfast property.

On the off chance that the sum is paid in portions, the TDS sum is deducted for every portion at the predetermined rates.

The TAN (Tax Deduction Account Number) isn’t obligatory to make the installment for TDS on the offer of resolute property, be that as it may, it is compulsory to have a PAN, bombing which TDS sum can’t be paid.

Be that as it may, the PAN of both the purchaser and the vender must be mandatorily submitted, else the TDS sum derivation will be at 20%.

When the TDS conclusion on the offer of the property is done, it is compulsory to submit Form 16B as the TDS authentication to the merchant inside 10-15 days of the derivation.

On the off chance that, there is more than one dealer or purchaser, the TDS will even now be pertinent at comparable rates and should be paid by both (purchasers) similarly.

The structure 26QB and structure 16B must be submitted to the administration inside 30 days of TDS conclusion.

Paying TDS through structure 26QB

In the installment of TDS on special of the property area, the installment should be possible effectively both through on the web and disconnected strategies, in a couple of simple advances. The procedure for installment of TDS conclusion at a bargain of property incorporates:

Visit the entrance of annual assessment office through the connection

On this page, open the choice of structure 26QB.

Further on the following page, you need to browse two alternatives, i.e., corporate payer or non-corporate payer. On account of the corporate payer, code 0020 must be picked and for the non-corporate payer, 0021 must be picked.

Next, you are given two installment choices, i.e., online through net-banking or disconnected through banks. For the disconnected, a receipt with an affirmation number is given a legitimacy of 10 days.

Downloading structure16B 

To acquire the structure 16B for TDS at a bargain of property, one needs to enlist themselves first on the TRACES entrance. After the enlistment is finished, the TDS authentication will be thought about the entrance, which would then be able to be submitted to the vender. The technique for downloading structure 16B for TDS on the offer of unfaltering property is as per the following:

Login on the TRACES entry.

Under the download segment, click on the alternative of ‘Structure 16B’ (for the purchaser).

Next, enter the PAN subtleties of the dealer alongside the affirmation number, at that point click on the ‘Continue’ alternative.

Next, confirm all subtleties and snap on the ‘Submit Request’ alternative.

Presently that, the solicitation is prepared.

After the accommodation, the structure 16B is accessible to download as a .compress record.

In the wake of downloading, one needs to enter the secret phrase to open the record. The secret word is the DOB of the candidate.

TDS marked down of the property to NRI

Under the TDS on special of property area, separate rates must be paid if there should be an occurrence of TDS on the offer of the property to NRI. At the point when a property is sold by a NRI, the duty must be paid on the quantity of additions by the NRI. For the expense payable, there are for the most part two kinds of additions, to be specific momentary gains and long haul gains.

Transient increases: When the property is sold inside 2 years after it is gotten, it is known as a momentary addition. The purchaser is at risk to pay 30% of the TDS on the offer of the property to NRI for this situation.

Long haul gains: When the property is sold 2 years after it is gotten, it is called long haul gains. The purchaser is subject to pay 20% of TDS on the offer of the property to NRI if there should be an occurrence of long haul gains.

On account of legacy too, the individual is at risk to pay a specific measure of duties according to the rates set by the annual expense piece.

Saving tax on capital gains

The deductible expense rate may appear to be very high to certain people, thus, to help decrease the assessment sum that should be paid to the administration, there are 3 different ways of exclusions from the duties, which include:

Segment 54: This exclusion is conceivable on account of long haul capital increases. Under this, the cost of the new property bought must be higher than the previous one, and the exclusion will be accessible just on the addition sum. Venture can likewise be made in the additions of a property under development. Nonetheless, this is obligated distinctly for a long time.

Segment 54F: This exception is likewise conceivable on account of long haul capital addition acquired on the offer of a private property or a capital resource.

Segment 54EC: Under this, the exception from the charges can be benefited by putting the sum in bonds. For this reason, the bonds gave by the National Highway Authority of India (NHAI) and Rural Electrification Corporation (REC) have been determined. The bonds so bought are redeemable simply following 5 years.


The TDS discounted of property segment may appear to be an additional obligation to the majority of the property purchasers, be that as it may, it is basic for straightforwardness in the administration. Further, exceptional contemplations must be made by the NRIs while selling their property. To profit the exceptions from the duty liabilities, the people must keep all the guidelines as indicated by the ways determined by the administration. In conclusion, it is compulsory for all the individuals having the limit pay to pay the TDS sum, else they will be obligated to take care of punishment under segment 234E and 271H, including late expense accommodation charges also.

Documents Required For TDS Filing

1) tds challan
2) invoices