TDS on property new rule and forms

As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all 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. Tax so deducted should be deposited to the Government Account through any of the authorised bank branches.
Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on this website.

Main points of the new rules are as under.


  •  Deduct tax @ 1% from the sale consideration.
  • Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
  • PAN of seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
  • Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.
  •  Provide your PAN to the Purchaser for furnishing information regarding TDS to the Income Tax Department.
  • Verify deposit of taxes deducted by the Purchaser in your Form 26AS Annual Tax Statement.
Full notification is as under.
 S.O.1404(E) .— In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:— 

1. (1) These rules may be called the Income-tax (Fifth Amendment) Rules, 2013. 
(2) They shall come into force on the date of their publication in the Official Gazette. 
2. In the Income-tax Rules, 1962, (hereinafter referred to as the said rules) in rule 30,– 

(a) after sub-rule (2), the following sub-rule shall be inserted, namely:— 
“(2A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IA shall be paid to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No.26QB.”; 

(b) after sub-rule (6), the following sub-rule shall be inserted, namely:—“(6A) Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QB, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in sub-rule (2A) into the Reserve Bank of India or the State Bank of India or any authorised bank.”; 

(c) after sub-rule (7), the following sub-rules shall be inserted, namely:– “(7A) The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purposes of remitting the amount electronically to the Reserve Bank of India or the State Bank of India or any authorised bank and shall be responsible for the day-to-day administration in relation to the remitting of the amount electronically in the manner so specified.”; 3. In rule 31 of the said rules,– 

(a) after sub-rule (3), the following sub-rule shall be inserted, namely:— 
 “(3A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person responsible for deduction of tax under section 194-IA shall furnish the certificate of deduction of tax at source in Form No.16B to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QB under rule 31A after generating and downloading the same from the web portal specified by the Director General of Income-tax (System) or the person authorised by him.”; 

(b) after sub-rule (6), the following sub-rule shall be inserted, namely:— 
“(6A) The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purposes of generation and download of certificates and shall be responsible for the day-to-day administration in relation to the generation and download of certificates from the web portal specified by him or the person authorised by him.”; 

4. In rule 31A of the said rules, after sub-rule (4), the following sub-rule shall be inserted, namely:— 

“(4A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or subrule (4), every person responsible for deduction of tax under section 194-IA shall furnish to the Director General of Income-tax (System) or the person authorised by the Director General of Income-tax (System) a challan-cum-statement in Form No.26QB electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within seven days from the end of the month in which the deduction is made.”; 

5. In Appendix-II of the said rules,— 
(a) after Form No.16AA, the following Form shall be inserted, namely:—

Download new form 16B in pdf format from here
Download new form 26QB in pdf format from here
Tags-tds on immovable property,tds new form 26qb,tds new form 16b,income tax new form 16b,16b income tax form,income tax form 16b,26qb it form,income tax 26qb form,tds on immovable property new rule,new rule of tds

Share on Google Plus

About Nitin Aggarwal

    Blogger Comment
    Facebook Comment

0 comments:

Post a Comment