Today in this Article we will discuss about TDS on Property Purchase Above 50 Lakh Rupees with Form 26QB Payment Process. Purchasing a property is a significant financial milestone and it is essential to be aware of various financial aspects associated with it. One such aspect is the requirement to deduct Tax Deducted at Source (TDS) when the property transaction exceeds 50 lakh rupees. we are also going to share step by step process for filing TDS Form 26QB Payment Process on your purchased property above 50 lakh so make sure that you read our today’s article till the end.
TDS on Property Purchase
TDS, or Tax Deducted at Source, is a mechanism employed by the Indian government to collect taxes at the source of income. When it comes to property transactions, the Income Tax Act mandates the deduction of TDS if the property’s value exceeds 50 lakh rupees. This ensures that the government receives its due tax on the property transaction.
Why is TDS Required?
If you have this question in your mind then we will explain to you why the TDS is required. When a Seller files their income tax return they need to show this property transaction and have to show capital gain or loss if any tax liability has arisen then its set off from this tax or can claim back as refund also. So for tracking the Property Transaction TDS is the best way.
When TDS is not required to be deducted?
TDS filing on your purchased property is also not required to be deducted in case of:-
- If sale consideration/SDV of property is less than 50 lakh rupees.
- If property is taken into consideration, it is agricultural land.
- If the seller is non resident in that case section195 applies regarding NRI Sale of Property.
How to Pay TDS on Purchase of Property [Form 26QB Payment]
If you want to file your 1% TDS on your purchased property above 50 lakh rupees then you will have to follow all these steps to file your TDS, all the important steps are given below so read all these steps carefully.
- In the first step, open the official website of the Income Tax Department of India in your browser.
- If you already have an account then click on the login button and fill in all the information which is required to login.
- If you don’t have any account then create your account.
- After Creating your account click on the “e-pay Tax” option.
- Now click on the “New Payment” option.
- After that you see the “26 QB(TDS on sale of property)” section now you will have to click on the “proceed”
- Now you will see that all your information is already filled. If it’s not then fill your all information manually and don’t forget to cross check your all information.
- Before submitting your TDS form you will have to click on the “Resident” option which is at the upper left corner of the TDS form.
- If there are more than one buyers of the property which you have purchased then you will have to fill in all the information of all buyers in the “Whether more than one buyer”
- After that click on the “Next” button.
Note:- if you have more than two buyers of the property then you will have to fill two “26QB” forms which contain all the information of the buyers.
- Now a new form is opened on your screen. In this form you will have to fill in the details of the property seller.
- In the first step check the ‘Resident’ option.
- After that fill in the PAN card number of the property seller.
- Now fill the permanent address of the property seller in the given section.
- After filling in all this information, click on the ‘Next’ button.
- In this step you will have to select the type of your property(land,shop, apartment,flats,bungalows,etc.).
- After that fill the address of your purchased property.
- Now fill the “Date of agreement/booking” in the given section.
- Fill the “Total value of Consideration(property)” in the given section.
- Now fill the payment date of your property purchase.
- After filling the date of your property purchase now fill your “Payment Type”.
- Now click on the “Continue” button.
- Now select your payment method(UPI, Netbanking,nft,etc.) to file your TDS.
By following all these simple and easy steps you can easily file your TDS on your property purchase above 50 lakh rupees. If you have any doubt related to this then feel free to share your doubt with us in the comment box you can also check out our YouTube video in which we explain how you can easily file your TDS refund on property purchase above 50 lakh so don’t forgot to check out our YouTube video, link of the YouTube video is given below.