Various regulations of sale of property are stated in this section for which tax deduction at source is to be applied and this certificate has to be furnished. They are as follows:
Note: Form 26QB should be filed vigilantly as there is no rectification process for any mistake and can only be corrected by contacting Income tax department.
When an individual pays tax deduction at source to the Government , he or she will get a challan or return under section 26QB. This is an electronically furnished document for tax deducted under section 194-IA. The Form 26QB should be filled correctly as there is no procedure to rectify the mistakes once the form is filled completely. Once this form is filled no changes can be made without contacting the income tax department directly. This form is important and further required to obtain Form 16B. There are few norms that are to be followed for this form. They are:
To generate Form 16B you have to register with TRACES with various details. The details you have to submit while registration are your PAN details, details of tax deduction or details of challan or details of Form 26QB. Enter the verification code and then proceed. The activation link will be sent to you by email. To proceed further follow the steps:
Below is the format of form 16B as per income tax act:
For furnishing Form 26QB, the deductor must issue Form 16B to the payee within a period of 15 days of expiry of due date.After this Form 16 can be generated and downloaded from TRACES by following the simple steps.
To make the deposition of Tax Deduction at source easy, the income tax department is providing facilities of online submission of the amount. The taxpayers can deposit their TDS amount online. Internet banking facilities are also available for various users. When the transaction is done online, a counterfoil will be displayed with CIN, bank details and payment details which is the proof of payment being done by the payer.
If submission has to be done offline by the taxpayer then the procedure is little tedious. After getting Form 26QB, a challan can be printed and the payment of tax deduction at source can be deposited at any authorized bank by means of cheque or draft.
Form 16B only requires PAN of deductor and deductee therefore Form 26QB can be filed without TAN.
The transactions can be done by furnishing a separate return challan Form 26QB to file TDS return in this condition without TAN.
Each and every person who has an income to be taxed is liable to pay tax to the Government. The assessee is also responsible to file an income tax return for the same. The income tax act states the deduction of tax at source itself to make the taxation simple as well as avoid tax evasion at various steps. The tax that is deducted at source can be deducted from the total tax liability and the balance will be payable by the taxpayer.
For such taxation policy, a TDS certificate is being furnished by the deductor for the deductee named as Form 16B during the payment of tax deduction at source for sale of property to the Government . This payment is done by the buyer and he deducts this amount from the total payment of the seller before giving him. The tax deduction at source will be made at the rate of 1% of the total amount from the sale consideration.
Ans. Regulations regarding sale of property is stated under section 194-IA.
Ans. The buyer has to deduct the payment of Tax Deduction at Source from the total amount to be paid to the seller before making the complete payment. The TDS is deducted will be deposited to the income tax department by the buyer.
Ans. Yes, the seller can file a tax return in place of the TDS paid by the buyer and get deduction in his total tax to be payable. He has to furnish Form 16B given to him by the buyer to get the return of the tax deduction at source.
Ans. All the property like land, building or part of building except agricultural land that is immovable comes under immovable property under this section.
Ans. The rate at which the tax deduction at source is to be deducted by the buyer is 1% for sale of property on behalf of the seller.
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