Legal Assistance


Deduction and Deposit of TDS on Transfer of Immovable Property


1. As per sec 194-IA of Income Tax Act, in case of transfer of an immovable property; TDS @ 1% is to be deducted on consideration paid to a resident transferor by any person; where the consideration for transfer of property is Rs 50 lacs or more.

2. The transferee is neither required to obtain a TAN number for deposit of TDS deducted as above nor required to furnish any TDS statement separately.

3. The payment mechanism has been specified in Notification No. 39/2013 dated 31st May 2013 which states as follows:

 3.1. Payment shall be made within 7 days from the end of the month is which deduction is made.

 3.2. It shall be accompanied by a challan-cum-statement in Form 26QB which requires following details:

  • Name, Address and PAN No. of Transferee/ Payer/Buyer

  • Mobile Number and email-id of the transferee/ payer/buyer

  • Name, Address and PAN No. of Transferor/ Payee/Seller

  • Mobile Number and email-id of the transferor/ payee/seller

  • Complete address of property transferred

  • Date of Agreement/ Booking

  • Total Value of Consideration

  • Installment/ Lumpsum payment

  • Other details as to date of payment / credit of amount so paid or credited; TDS rate applied; TDS amount; date of deduction, date of deposit, mode of payment, interest on late deposit etc.

  • It is also required to mention whether there is more than one transferor/ transferee.

 3.3. TDS shall be deposited electronically into RBI/ SBI or any other authorized bank.

4.  TDS certificate shall be downloaded from web portal and be furnished by tax deductor in Form  16B; within 15 days from due date for furnishing challan-cum-statement in Form 26QB.

5.  The transferor would get credit of taxes paid on the basis of information furnished by the transferee in the   challan for payment of TDS.

6.  TDS rate would be 20% if the seller does not furnish its PAN No.

7.  The aforesaid provisions are applicable from 1st June 2013.

Note:  In respect of flats valuing Rs. 50 lacs or more and purchased before 1st june 2013, TDS will only be deducted in respect ofpayments made after 1st June 2013.