TDS Tutorial

We have put together this guide to help you to pay TDS on Property as required by the Income Tax
Act. Please use this to make your TDS payment and obtain the Form 16B in order to get the credit
applied toward your Statement of Account.

Please note that our CRM team is not authorized to make TDS payment on your behalf or provide
any further advise other than what has been reviewed and carefully laid out below. We strongly
suggest you take the help of a tax advisor for any TDS payment related guidance.

1. Requirements of section 194IA

Per Section 194-IA of the Income Tax Act, as of 1st June 2013, when a buyer buys immovable
property (i.e. a building or part of a building or any land other than agricultural land) costing more
than Rs 50 lakhs, he has to deduct tax at source (TDS) when he pays the seller. As of 1st September
2019, this section was further amended and can be referred here:
https://incometaxindia.gov.in/Charts%20%20Tables/TDS%20Purchase%20of%20Immovable%20pro
perty.htm

Our interpretation is that if the agreement value plus all other charges listed out in clause 1(3)(aa)
are greater than Rs 50 lakhs, then the TDS on the full value is payable each time a payment is made
towards the transfer of property.

Highlights:
1. The buyer of any immovable property need not obtain a TAN (Tax Deduction Account
Number) for making payment of the TDS on immovable property. You can make the
payment using your PAN.
2. For the purpose of making payment of TDS on immovable property, the buyer has to obtain
the PAN of the seller, else TDS is deducted at 20%. PAN of the buyer is also mandatory. TDS
is deducted at the time of payment (including instalment payments) or at the time of giving
credit to the seller, whichever is earlier.
3. The TDS on immovable property has to be paid using Form 26QB within 30 days from the
end of the month in which TDS was deducted.
4. After depositing TDS to the government, the buyer is required to furnish the TDS certificate
in form 16B to the seller. This is available around 10-15 days after depositing the TDS.
5. The buyer is required to obtain Form 16B and issue the form to the seller.

2. Steps to pay TDS through challan 26QB and to obtain Form 16B
Before you begin, have the following documents available for your ready reference so that the
online sessions do not time out:
• A copy of your Brigade Allotment Letter for the total consideration and date of booking
• The Payment Request for which you are paying the associated TDS. The latest format of the
Brigade Payment Request letter includes the information required to be entered for the
Payee/Seller, per the NSDL website.
• Your PAN card
• Online banking sign-in information

This document is property of the Brigade Group. Content pertaining to external agencies/government/tax/ tax rates are subject to change.
Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
There are two parts:
Part A – pay TDS through NSDL website and receive bank challan and Form 26QB for your records
Part B – obtain Form 16B from TRACES and furnish to the seller for payment credit

PART A: Payment through Challan 26QB (Online and Offline)

Go to https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and click on TDS on Property
(Form 26QB).

Step 1:
Tax applicable: For individuals, select (0021). For those purchasing the property through a company,
select (0020).
PAN of Transferee: enter your PAN number
PAN of Transferor: enter Brigade PAN number found in your Payment Request
Fields in grey will auto-populate

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Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
Step 2: Address information for you and Brigade (per the Payment Request) can be entered here.

Step 3: Property details

Type of property: select building
For the address of property transferred, please check your Payment Request, Note on TDS
Date of agreement/booking: Use the date of the Allotment Letter
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Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
Total Value of Consideration: Total consideration of your unit is equal to the Agreement Value plus
Additional Expenses and excluding Stamp Duty on Agreement to Sell, Deposit towards One-time
sinking fund and Deposit towards Campus Corpus Fund (if applicable). These amounts can be found
on your Allotment Letter or your Statement of Account. TDS is payable if Total consideration is 50
lakhs or more. Payment Type: usually select Instalment unless the full amount of the consideration
was paid in a lump sum
Amount Paid/Credited: enter the amount of instalment for which you are paying the associated TDS.
In the first section you will have to select the numbers corresponding to the units (crores, lakhs, etc)
and in the second, you will have to type in the total instalment amount paid, for which you are now
paying the associated TDS.
For further information, in your customer agreement, the agreement value will be mentioned
separately from the additional expenses. The e-stamp paper along with your agreement will also
match the agreement value only, without including the additional expenses. In order to stay
consistent, we recommend the following:
1. If paying TDS associated with instalments towards Agreement Value, for “Total Value of
Consideration (Property Value), please enter the Agreement Value only. In “Amount
Paid/Credited”, enter the instalment value(s) paid, for which you are now making the
associated TDS payment.
2. If paying TDS associated with all Additional Expenses, for “Total Value of Consideration”,
please enter the subtotal of Additional Expenses items in the field. In “Amount
Paid/Credited”, enter the subtotal of all Additional Expenses, for which you are now making
the associated TDS payment.
3. If paying Additional Expenses on a one-off basis, for example, clubhouse fees only, for “Total
Value of Consideration”, please enter the value of clubhouse fees only. In “Amount
Paid/Credited”, enter the clubhouse fees only, for which you are now making the associated
TDS payment.
Basic Tax: Calculate the TDS amount and enter it here

This document is property of the Brigade Group. Content pertaining to external agencies/government/tax/ tax rates are subject to change.
Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
Step 4: Payment info
There are 2 modes of payment: e-tax payment immediately (through net banking or debit card
facility) OR e-tax payment on the subsequent date (e-payment of taxes by visiting any of the Bank
branches). Choose the one which you prefer.
If you choose payment immediately, you will be able to so online. After you have paid, the bank lets
you print Challan 280 with a tick on 800 (i.e. payment of TDS on sale of property). Print this out and
keep it safe.
If you cannot pay online, an online receipt for Form 26QB with a unique Acknowledgment Number is
generated for you. This is valid for 10 days after generation. You can take this to one of the
authorized banks along with your cheque to complete the payment. The bank will proceed with the
online payment and generate your challan.

This document is property of the Brigade Group. Content pertaining to external agencies/government/tax/ tax rates are subject to change.
Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
Congratulations! You have now completed the TDS payment!
To furnish proof of having paid TDS, and to get the credit for TDS payment in your Statement of
Account, you will need to provide the From 16B from the TRACES website to the Brigade CRM team.
Please note that the CRM team is not authorized accept bank payment confirmation pages or the
challan 280 from the NSDL website as proof of TDS payment. Credit towards TDS paid will be made
in the Statement of Account only upon providing the Form 16B, so the next step is essential to
complete the entire process.
If you are paying late, you may need to enter the associated fee/ interest here.
Example of TDS calculation

Here is a sample table as it would appear in your Payment Request. Note there may be different line
items, only some of which are subject to TDS per the regulation. Also, the amounts payable are
shown before and after the applicable GST. TDS, if applicable, is only on pre-GST amounts.

In this example, one of the line items, Stamp Duty on Agreement to Sell, is not subject to TDS.
However, the milestone payment towards Construction is subject to TDS, but TDS is applicable on
the Bill Value of Rs.7,75,515/- only. It is not applicable on the post GST value, i.e. there is no TDS on
GST.

This document is property of the Brigade Group. Content pertaining to external agencies/government/tax/ tax rates are subject to change.
Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
Assuming TDS is 1% (please use the TDS rate in effect based on current regulation and deduction per
NSDL website):
Amount payable to Brigade for stamp duty, no TDS chargeable = 7,755
Amount payable to Brigade for construction milestone, less 1% = 7,75,515*99% + 38,775.76 =
8,06,535.61
Total amount payable to Brigade = 7,755 + 8,06,535.61 = 8,14,290.61

PART B: Register in TRACES for Form 16B

If you are a first-time user, register on TRACES as a Tax Payer with your PAN Card Number and the
Challan number registered during payment.
Once you register, you will be able to obtain approved Form 16B (TDS certificate) and you can issue
this Form to Seller. Check your Form 26AS seven days after payment. You will see that your payment
is reflected in Part F under “Details of Tax Deducted at Source on Sale of Immovable Property u/s
194(IA) [For Buyer of Property]”. Part F information is not available for Claim in ITR of the buyer.
This gives you details such as TDS certificate number (which TRACES generates), name and PAN of
deductee, transaction date and amount, acknowledgement number (which is the same as the one
on your Form 26QB), date of deposit and TDS deposited.

Step 3: Download your Form 16B

After your payment in Form 26AS has been reflected, login to TRACES. Go to the Download tab at
the tab and click on “Form-16B (for the buyer)”.
If it is your first time using the website, you will need to register as New User (taxpayer), else login
using your existing credentials.

This document is property of the Brigade Group. Content pertaining to external agencies/government/tax/ tax rates are subject to change.
Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
Upon logging in and accepting terms of usage, on the left hand side, under Quick Links, click Form
16B/16C/16D (For Buyer/Tenant/Payer).

To finish this process, select “26QB” for Form Type, and enter the Assessment Year,
Acknowledgement Number, and PAN of the seller, according to the information in the Form 26QB
that you would have downloaded from the NSDL website while making the TDS payment. Then click
on “Proceed”.
Verify all the details once and click on “Submit request”.
After a few hours, your request will be processed. Log into the TRACES website again, Click on the
Downloads tab and select Requested Downloads from the drop-down menu and search using the
“View All” option.

You should be able to see that the status of your Form 16B download request is Available. If the
status says Submitted wait for a few hours more before repeating the last step. Download the .zip
file.
The password to open the .zip file is Date of Birth of Deductor (the format is DDMMYYYY). Your form
will be available inside the .zip file as a pdf. Please share this with the Brigade CRM team in order to
ensure that the TDS amount you have paid is reflected in your statement of account.

3. Notice for non-filing Form 26QB

The income tax department receives an Annual Information Return (AIR) from the registrar/sub-
registrar office regularly. From this report, the department can figure out if you have made a
property transaction exceeding Rs.50 lakh. If the buyer has not deducted tax at source at applicable
rate on the transaction amount or not filed TDS within the specified time, the IT department will
send a notice to the buyer.

This document is property of the Brigade Group. Content pertaining to external agencies/government/tax/ tax rates are subject to change.
Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
* Please refer to their FAQs (https://www.tdscpc.gov.in/en/top-faq.html) and e-tutorials
(https://www.tdscpc.gov.in/en/user-manual.html) for detailed screen-driven assistance, before
seeking further help. The TRACES Toll Free Number is 1800 103 0344.

4. Penalties Applicable on non-filing of Form 26QB

Interest on: Calculation

Non-deduction of 1% per month for the period from the date on which TDS is deductible/collectable to
TDS the date on which TDS/TCS is actually deducted.

Non-remittance of 1.5% per month for the period from the date on which TDS is deducted to the actual
TDS date of payment.

Late filing fee: Calculation

Late filing fee under In case of default of non-filing or late filing of Form 26QB, a penal fee is applicable
section 234E @ Rs under section 234E of the income tax act. Rs. 200 has to be paid for every day during
200 per day which such failure continues. The buyer would also be liable for defaults of late
Deduction, late payment and interest thereon.

Penalty Calculation

Penalty Assessing Officer may levy penalty under section 271H at his discretion. This section is
under applicable when a statement as required by the tax laws is not submitted timely. Penalty under
section this section must be more than Rs 10,000 and can extend to Rs 1lakh. However, if TDS is
271H deposited with fee & interest and statement is submitted within 1 year of the time prescribed,
no penalty shall be levied.

Frequently Asked Questions

How are transactions of joint parties filed in Form 26QB?
The Form 26QB challan has to be filled by each buyer for every unique buyer-seller combination for
their respective share. For example, in case of one buyer and two sellers, two forms have to be filled
in. Similarly, if there are two buyers and two sellers, then four forms will have to be filled in.
I am a buyer. Should I deduct TDS on the amount exceeding the property value of Rs 50 lakh or the
entire amount at which I have bought the property?
TDS has to be deducted by the buyer on the entire amount that is paid or credited to the seller when
the amount exceeds Rs 50 lakh. For example, if a property is bought for Rs 70 lakh then TDS has to
be deducted on the entire amount–that is Rs 70 lakh, not on just the Rs 20 lakh that exceeds the Rs
50 lakh threshold.
I am a buyer. How do I procure TAN to report the TDS on sale of property?
TAN is the Tax Deduction Account Number. Neither the buyer, nor the seller is required to procure
the TAN for making TDS payment on the purchase of the immovable property. However, it is

This document is property of the Brigade Group. Content pertaining to external agencies/government/tax/ tax rates are subject to change.
Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.
mandatory for the buyer to quote his or her PAN as well as the seller(s)’s PAN while deducting TDS
on the purchase transaction.
I am a buyer. What should I do if I don’t have the PAN of the seller(s)?
The seller(s)’s PAN is mandatory for deducting TDS and filing Form 26QB. It is buyer’s responsibility
to acquire the PAN from the seller(s) before effecting the transaction.
How can I use the Form 26QB facility to pay TDS on the purchase of property?
The buyer of the property has to make the payment of TDS. It is his or her responsibility to furnish
the information regarding the immovable property transaction online on the TIN website. After
successfully providing details of the transaction, the deductor can:

• Make the TDS payment online immediately through the e-tax payment option
• Make the payment later on through the e-tax payment option or by visiting any of the
authorized banks

If you make the payment through a bank, note that the bank will make the payment without
digitization of any challan. The bank will get the challan details online from the form filed
on www.tin-nsdl.com.
Do I have to file Form 26QB if the payment and registration of the property was done before May
2013?
Form 26QB is applicable on the purchase of properties after 1 June 2013. Hence, for properties
where the formalities were completed before this date, there is no requirement to file Form 26QB.

This document is property of the Brigade Group. Content pertaining to external agencies/government/tax/ tax rates are subject to change.
Readers are advised to refer to relevant guidelines prior to taking any decisions based on information provided in this document.