Immovable property TDS

Immovable property TDS

Government of India has introduced a recent provision of TDS on immovable property in 2013 finance bill. According to this new provision any person who purchases any immovable such as any building or land equal or above amount Rs. 50 Lakhs requires a withholding tax to pay. This provision is not applicable for agriculture land. Income tax act section 194/A contains this provision. Tax deduction rate under this provision is 1%. People who deal with amount less than 50 Lakhs in immovable property cannot get any benefit by this. TDS on immovable property is applicable from June 1, 2013.


Main points covered under TDS on immovable property:

  • PAN number of buyer and seller is very important and required while filling TDS.

  • Rate of deduction by purchaser under TDS is only 1%.

  • Online facility of deposition TDS is available.

  • Form should be filled very carefully without any errors.

  • This deducted tax has to be paid within seven days of next month of payment by the purchaser.

  • For TDS deduction under this provision form 26QB is required.

  • One can get TDS certificate within 15 days of TDS payment.

  • If seller of property does not give his PAN number than deduction rate can go upto 20%.


Meaning of TDS:

TDS is tax deducted at source which also known as withholding tax. It simply means when a person make payment in any specified kind of deal than a amount is deducted while payment and submitted at government account as tax. TDS on immovable property means when a person buys an immovable property than he will have to submit a deducted amount from payment in government account. Seller has to disclose his PAN number to the buyer. If seller doesn’t disclose his PAN number then tax deduction can be upto 20% under this provision.

Procedure of submitting TDS on immovable property:

One of the best ways to submit TDS is via online tax payment system. If a person who is submitting tax has net banking account with an authorized bank then he can pay tax online. For these one need to follow these steps:

  • Go to the website

  • Then choose option of furnish TDS on property to pay tax.

  • Select and fill the appropriate form correctly with all required details.

  • Then click “proceed” option and follow the instruction for making payment.


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