What do you mean by TDS?
TDS simply means Tax Deducted At Source. When you buy a property (above 50 lakh), you must deduct 1% from the flat agreement value and pay this amount to the government under the income-Tax Act, 1961.
In the Layman terms, consider this 1% amount as the advance income tax you are paying for the builder (the seller) to the government. The seller of the property can then claim the TDS deducted on the immovable property at the time of filing their income tax return.
For better let’s take an example:
If the flat costs 1Cr, then you will deduct 1 lakhs from the total amount you pay to the government as a TDS and the remaining amount goes to the builder bank account.
PAN card of the buyer and seller is mandatory to make e-payment of TDS on sale of the property. The TAN is not required.
TAN means (tax deduction account number).
How you can Pay TDS online?
Simply log on to:
https://onlineservices.tin.egovnsdl.com/etaxnew/tdsnontds.jsp
Visit the above link to make a TDS payment.
Once tax Payment is made, Form 16B (TDS certificate to be issued by the buyer to the seller) can be downloaded from www.tdspcv.gov.in
Also, you can contact 020-27218080 or email tininfo@nsdl.co.in , if you are having a problem making the TDS payment or filling out the 26AS form.
For whom it is applicable:
This is applicable on the sale of all property except the agricultural land. It is also important to note that these 1% TDs are applicable only if the seller is resident in India. If the seller is an NRI, then the rate of TDS will change and TDS would apply even if the property costs less than 50 lakhs.
Note – Don’t consider TDS to be an additional cost! You are just deducting 1% from the property value and paying that to the government on the behalf of the seller.
