TDS on transfer of immovable property other than agricultural land

After deducting tax from the consideration paid for transfer of any immovable property, the deductor is required to remit the TDS amount to the credit of central government by using challan 26QB.

As a proof of deduction, the deductor is required to issue TDS certificate in form no. 16B.

If payments for transfer of any immovable property are to be made in installments for a total consideration amount of Rs. 50,00,000 or more, then tax has to be deducted at the rate of 1% while paying instalments.

Challan 26QB has to be filed for each such deduction. This means for each installments, tax has to be deducted at the rate of 1% and paid by using form 26QB.

While filing form 26QB, you are required to have permanent account number of both the parties.

After filing form 26QB, tax amount deducted from payments will reflect in form 26AS.

If assessee is not liable to tax but TDS amount as per section 194IA has been deducted from the consideration, then refund can be claimed by filing return of income with the IT department.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.