1% TDS on property decoded
TDS @ 1% is to be deducted on all Property Transactions which are above Rs. 50 Lakhs.
- This TDS is to be deducted on all types of Property Transactions irrespective of whether the property in consideration is a flat or a building or a vacant plot.
- TDS is to be deducted irrespective of whether it is a Residential Property or Commercial or Industrial Property.
- TDS is to be deducted on all types of property transactions except Agricultural Land.'
- TDS is to be deducted on the total amount paid to the Seller excluding VAT and Service Tax. This can be explained with the help of an example:-
Example: Suppose you need to pay below amount to builder/seller:
Base Value of Property: 60,00,000
Service Tax : 2,00,000
VAT: 50,000
--------------------------------------------
Total 62,50,000
Then you need to pay 1% TDS on 60,00,000
1% TDS for above example would be = 60,000/-
99% Amount + Service Tax+VAT + other taxes needs to be paid to the builder/seller
Amount which should be paid to builder = Total - 1% TDS = 62,50,000 - 60,000 = 61,90,000/-
What is form 26QB and Form 16B?
Form 26QB is the online form which is filled by the buyer while paying 1% TDS via NSDL site
Form16 B is the TDS certificate which is given to the buyer as a proof that he/she has successfully paid 1% TDS by filling form 26QB
How to Pay 1% TDS?
2. Select Form26QB
3. Enter All your details
4. Click Proceed and verify all your details
5. Save the acknowledgement number for future reference
6. Make Payment via net banking from the bank of your choice
7. Save the Challan details for future reference
How to get Form 16B ?
2. Login to the TDS portal using your PAN as user id
Note: If you do not have an account then you need to register first by filling the Registration form
3. After you have logged in, from menu select Download -> Form 16B (For Buyer)
4. Enter/Select below details :
Assessment year,
Acknowledgement Number which you have received during 1% TDS Payment while filling FORM 26QB
Enter PAN number of seller
Note: The acknowledgement number might take between 1-3 days to appear in this TDS portal
5. Verify Details to be printed on Form 16 B
6. Select Submit Request
7. After you have submitted the request it would take few days to appear under downloads in the same TDS portal. (Downloads - > Requested Downloads)
Note: It can take anywhere between 1-7 days for Form16B to appear under downloads
Password to open Form 16B
Password is your date of birth in ddmmyyyy format
If your DoB is 15th April 1984 then password would be : 15041984
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