How To File TDS On Property In 2024

How To File TDS On Property In 2024?

Real estate transactions involve various terms, and one crucial aspect is Tax Deducted at Source (TDS) on property sales. Here's a simplified guide to navigate through TDS on property transactions in 2024.

1. TDS Basics:

In the real estate world, TDS is applicable when a property transaction exceeds Rs 50 lakh. The buyer is required to deduct 1% of the total transaction amount as TDS before making the payment to the seller. TDS is an indirect tax deducted at the source and is applicable to both ongoing and one-time incomes.

2. Filing TDS on Property:

To file TDS on property, follow these steps:

• Enter your phone number and validate your PAN.

• Select "New Payment" and proceed with 26 QB (TDS on Property Sale).

• Complete the form with essential details like buyer's and seller's PAN, email addresses, property details, payment information, and tax details.

• Choose your preferred payment method (online banking, debit card, bank, NEFT/RTGS).

• After payment, receive an acknowledgment challan.

Read More:- What is the new rule of TDS?

3. Downloading Form 16B:

To download Form 16B, follow these steps:

• Log in to the TRACES site using your PAN.

• Navigate to the Downloads section and select Form 16B for the buyer.

• Enter property details and proceed by providing seller's PAN, acknowledgment number, and assessment year.

• Submit the request, and upon success, download the files using the request number.

4. Changes in TDS Rules:

The government has made changes to TDS rules for immovable properties. Additional fees for maintenance, club membership, utilities, parking, etc., will be added to the property cost when calculating TDS.

5. TDS on Property Purchase from NRI Seller:

If purchasing from an NRI seller, deduct 20% TDS along with 4% cess. If the NRI seller sells within two years of purchase, deduct 30% TDS along with 4% cess.

6. Points to Remember:

• No TDS if the property value is less than Rs 50 lakh.

• Buyers don't need a Tax Deduction Account Number (TAN) to deduct TDS.

• If the seller lacks a PAN, TDS is at a higher rate of 20%.

Conclusion:

TDS ensures taxation on qualified income sources, providing a consistent revenue stream for the government. While sharing the tax collection burden, it broadens the tax base and benefits both taxpayers and the government. Understanding these simple steps and rules is crucial for a smooth real estate transaction.

 

Read More:- What are the rules for TDS?