If the total sale consideration of the flat is Rs. 50 lakhs or more, then you need to deduct tax at the rate of 1% from each instalment paid as consideration.

The rate of TDS on sale of property is 1%. The amount should be deducted by the buyer at the time of making payment of consideration to the seller.

Yes. TDS on sale of property is applicable to all categories of buyers. Any buyer purchasing immovable property for Rs. 50 lakhs or more shall deduct TDS from the consideration paid to the seller.

Yes. Where the sale consideration of the immovable property is Rs. 50 lakhs or more, TDS should be deducted. It is irrelevant if the property is under-construction or completed.

Normally the TDS is to be deducted from the sale consideration paid to the seller. However, Finance Act, 2019 provides that consideration for transfer of immovable property will include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property. This is applicable from 1st September, 2019.

TDS under section 194IA is not to be deducted in the following cases: -

• Where the immovable property purchased is rural agricultural land; or
• Where the total sale consideration is less than Rs. 50 lakhs.
• The seller is a non-resident. (In such case, Compliance of TDS provisions is different)

For TDS on sale of property, TAN is not necessary. Any person having a valid PAN (Permanent Account Number) can deduct tax from the sale consideration paid and deposit the same. The buyer needs to quote his PAN and the seller’s PAN at the time of filing Form 26QB.

Form 26QB is the online form available in the TIN-NSDL website for furnishing information regarding TDS on sale of property.

TDS must be paid to the credit of the Government within 30 days from the end of the month in which tax was deducted. The payment should be done online from the TIN-NSDL website through Form 26QB.

Yes. The total consideration is to be seen to determine whether TDS is applicable on not. In the given case, since the total consideration exceeds Rs. 50 lakhs, TDS shall be deducted from each instalment paid as consideration to the seller.

After filing Form 26QB, an acknowledgement is generated. The buyer needs to keep a copy of the acknowledgement. The buyer needs to provide a certificate of TDS to the seller in Form 16B. The certificate can be downloaded from the TRACES portal after successful filing of Form 26QB.

Form 16B is the certificate of TDS. It should be provided by the buyer of the property to the seller. The certificate stands as proof of deduction and deposit of TDS. Form 16B can be downloaded from the TRACES portal by the buyer after successful filing of Form 26QB.

Furnishing the PAN of the seller is mandatory. You can collect the same from the seller before effecting the transaction. PAN is usually mentioned in the deed of conveyance for transfer of immovable property.

Form 26QB is to be filed by each buyer with unique buyer-seller combination for respective shares. In the given case you and your spouse have to file two separate Form 26QB with your respective shares.

A buyer is required to file Form 26QB with unique buyer-seller combinations for each buyer and each seller. In the given case, you have to file a separate Form 26QB for each of the joint sellers stating their individual shares.