As per the Section 194IA, The buyer of the property has to deduct the TDS while paying the seller of the Property.

Section 194IA

When a buyer buys immovable property (other than agricultural land) costing more than Rs 50 lakhs, he has to deduct tax at source (TDS) when he pays the seller. This has been laid out in Section 194-IA of the Income Tax Act.

• The buyer has to deduct TDS at 1% of the total sale consideration.
• No TDS is required to be deducted if sale consideration is less than Rs 50 lakhs.
• TDS is to be paid on the entire sale amount.
• The buyer of any immovable property need not obtain a TAN
• For the purpose of making payment of TDS on immovable property, the buyer has to get 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 or at the time of giving credit to the seller, whichever is earlier.
• The TDS on the immovable property has to be paid using Form 26QB within 30 days from the end of the month in which TDS was deducted.
• The buyer is required to furnish the TDS certificate in form 16B to the seller. This is available around 7-14 days after depositing the TDS.

Payment through Challan 26QB (Online)

TDS can be Deposited online through 26QB Challan on Tin-NSDL website.
Link to Deposit Online – TIN-NSDL

Select – TDS on Property (Form 26QB), and fill in the required details.

Once the payment is processed, the same would be reflected in the 26AS of the Seller.

Downloading Form 16B

After your payment the TDS would be reflected in the Form 26AS of the Seller.

Login to Traces website, https://www.tdscpc.gov.in/

Go to the Download tab at the tab and click on “Form-16B (for the buyer)

Notice for non-filing Form 26QB

The income tax department receives an Annual Information Return (AIR) from the registrar/sub-registrar office regarding the purchase and sale of property 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 1% of the transaction amount or not filed TDS within the specified time, the IT department will send a notice to the buyer.