What is Section 194IA of Income Tax Act? Section 194IA of the Income Tax Act is a provision related to the deduction of tax at source (TDS) on payments made for the purchase of immovable property.
Who is required to deduct and what is the Threshold Limit & rate of TDS under Section 194IA?
As per section 194IA, any person who is responsible for paying any sum to a resident for the transfer of any immovable property (other than agricultural land) worth Rs. 50 lakhs or more, is required to deduct TDS at the rate of 1% at the time of making such payment. If PAN not furnished, TDS will be 20% in all cases.
How to pay TDS u/s 194IA?
The steps to pay TDS through challan 26QB are: Log in to your account on the Income Tax e-filing portal. Select e-File from the menu and click on e-Pay Tax from the dropdown options. Click on ‘+ New Payment’ to start a new payment transaction. Select ’26QB TDS on Property’ and click on the ‘Proceed’ button. Enter the buyer’s details, which will be auto-filled based on your account information. You can make changes if needed and click on ‘Continue’. Enter the seller’s details, including their PAN and address, and click on ‘Continue’. Enter the property details, including the property type, address, and sale details such as the date of agreement and the sale value. The tax amount will be calculated automatically. Once done, click on ‘Continue’. Add payment details and select your preferred payment mode. Complete the payment process. Once the payment is successful, a challan will be generated, which you can download and keep for future reference.
How to download form 16B?
The steps to download Form 16B after making the TDS payment through Form 26QB: Log in to TRACES. Go to the ‘Download’ tab and click on ‘Form-16B (for the buyer)’. Fill in the seller’s PAN and acknowledgement number details related to the property transaction, and click on ‘Proceed’. Verify all the details and click on ‘Submit a request’. Wait for a few hours for the request to be processed. Check the ‘Downloads’ tab and select ‘Requested Downloads’ from the dropdown menu. Check the status of your Form 16B download request. If it says ‘available’, proceed to the next step. If it says ‘submitted’, wait for a few more hours before checking again. Download the ‘.zip file’ containing the Form 16B. The password to open the ‘.zip file’ is the date of birth of the deductor in the format of DDMMYYYY. Once you open the ‘.zip file’, you can access the Form 16B in PDF format. Print out the form for future reference.
