Tds on immoveable property

This query is : Resolved

Zaid Patanwala (Querist)
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09 December 2013 Dear sir,

Can you please advise on the procedural compliance for payment of TDS on transfer of immoveable property (Sec 194 I-A) i.e. whether if TAN has to be obtained or whether if direct payment can be made.

Further how is credit for this TDS given i.e. if TDS return has to be filed and FORM 16A to be issued.

Sanket

Sanket (Expert)
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09 December 2013 Deposit of tax

Any tax deducted under section 194-IA will be

Deposited within 7 days from the end of month in which tax was deducted
Deposited by way of Challan-cums-statement in Form 26QB
Deposited electronically into RBI/SBI or any authorized bank. Director General of income-tax (Systems) will specify formats , standards and procedure for such electronic remittance
TDS Certificate

TDS Certificate in respect deduction under section 194-IA will be issued by deductor in Form No 16B
Form 16B has to be issued within 15 days from the due date of depositing tax
Form 16B will have to be downloaded from income tax web portal
Mandatory Electronic Payment

NSDL site has already provided a new link “TDS on sale of Property” under ePayment of Taxes to electronically deposit such TDS
It is mandatory to provide PAN of both transferor and transferee
Complete address of transferor and transferee is to be given
About property , complete address, value consideration ,date of agreement and whether payment made in lump sum or installment is also to be provided in the online form
Electronic Payment by deductors not having net-banking facility

Since Section 194-IA transactions will be one off and deductor may not have net-banking facility, an alternate has been provided.
The deductor has to fill the information online and then opt for e-tax payment on subsequent date option.
On completing the form, an acknowledgement will be generated.
The deductor can then visit a bank branch for payment, provide the acknowledgment number.
Bank will use TIN web site to retrieve payment information based on the acknowledgement number and then proceed to make electronic payment
What if there is an error in providing PAN details

Deductor must be very careful in filling up PAN details.
In case wrong PAN is entered, there is no facility of correcting the same online. The only option available is to approach the Assessing Officer or TDS-CPC