As per the information received in Annual Information return (AIR) through Registrar/Sub-registrar, you have executed transaction for Purchase of Immovable Property exceeding Rs. 50 Lakhs (Rupees Fifty Lakhs) during Financial Year. However TDS Statement in Form 26QB has not yet been filed by you. In this regard, your urgent attention is invited to the following, with respect to filing of TDS Statement in Form 26QB and Issuance of TDS Certificates in Form 16B downloaded from TRACES.
1. Mandatory Filing of Form 26QB:
As per Finance Act of 2013, TDS is applicable on transfer of immovable property, wherein the consideration of the property exceeds or is equal to Rs 50 Lakhs. Sec 194 IA of the Income Tax Act, 1961 read with Rule 30, 31 & 31A of Income Tax Rules states that:
(a) For all such transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration.
(b) Tax so deducted should be deposited to the Government Account through e-tax Payment option (Netbanking) or any of the authorised bank branches. Any sum so deducted under section 194-IA shall be required to be paid to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction is made.
(c) PAN of seller as well as Purchaser should be mandatorily furnished in an online Form (Form 26QB) for furnishing information regarding the property transaction. Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on the website www.tin-nsdl.com.
(d) TDS certificate in Form 16B is required to be issued by the Buyer of property to the Seller, in respect of the taxes deducted and deposited into the Government Account. Form 16B will be available for download by Registering on the website of Centralized Processing Cell (TDS) www.tdscpc.gov.in.
2. Issuance of TDS Certificates in Form 16B downloaded from TRACES:
It is mandatory for all buyers to issue TDS certificates after generating and downloading the same from TRACES, “TDS Reconciliation Analysis and Correction Enabling System”(www.tdscpc.gov.in). The TDS Certificates downloaded only from TRACES Portal will hold valid.
3. Implications of Non/Late filing of TDS Statements:
For Buyer of Property: In case of default on account of Non / late filing of Form 26QB, a fee shall be levied u/s 234E of the Act. He shall be liable to pay, by way of fee, a sum of Rs. 200 (two hundred) for every day during which such failure continues. The buyer would also be liable for defaults of Late Deduction, Late Payment and Interest thereon. Penalty under S. 271H may also be levied on him by the Assessing Officer.
For Seller of Property: Non/ Late filing of Form 26QB results into the TDS Credit not being available to the seller for claiming the amount of tax already deducted from the payments made.
In case of any clarification/suggestion, you may write to us on (info@tdscpc.gov.in). Please click the links for any assistance on Filing 26QB, Downloading Form 16B or call toll-free number 1800 103 0344.
CPC (TDS) is committed to provide best possible services to you.
