Types of CHALLAN CUM TDS Returns
3 types of CHALLAN Cum Returns under TDS–
| No. | Form | Section | TDS certificate Form | Description |
| 1 | 26 QB | 194-IA | 16B | TDS on Payment of transfer of Immovable Property |
| 2 | 26 QC | 194-IB | 16C | TDS on Rent on Property |
| 3 | 26 QD | 194M | 16D | TDS on Payment to Resident Contractors and Professionals |
Section 194-IA – TDS on Payment of transfer of certain Immovable Property Other than Agriculture Land
- Buyer is required to deduct TDS and NOT the seller.
- Rate of TDS = 1 % of the Total Consideration
- Rate of TDS = 20% (NO PAN)
- Threshold Limit = 50 Lakhs
- Example : –If you buy a house of Rs.65 Lakhs, you have to deduct TDS on RS.65 Lakhs and not on difference amount Rs.15 Lakhs (65-50)
*As per press release issued by CBDT, certain payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021.
- No need to obtain a TAN (Tax deduction account number) by buyer.
- Buyer can make the payment using PAN.
- TDS has to be paid using FORM 26QB.
- Payment is made within 30 days from the End of month in which TDS was deducted.
- Buyer is required to furnish TDS Certificate in FORM 16B to the seller.
- TDS certificate in Form 16B is Available around 10 to 15 days after depositing the TDS and it is mandatory to issue TDS certificate.(Downloaded only from TRACES Portal . Link – https://contents.tdscpc.gov.in/)
As per Budget changes 2019
(Applicable from on or after 1st September, 2019) ‘Consideration for immovable’ property shall include all charges like nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to the transfer of the immovable property.
Transaction in Case of Joint Parties
Form 26QB challan has to be filled by each buyer for every unique buyer-seller combination for their respective share.
- Example of unique buyer-seller combination :
2 Forms in case 1 buyer and 2 Sellers
4 Forms in case of 2 buyer and 2 sellers
Note : – If the payment is made by installments, then TDS has to be deducted on each installments paid.
Notice for non-Filling Form 26QB : –
CBDT received an ANNUAL INFORMATION RETURN (AIR).
AIR of ‘high value financial transactions’ is required to be furnished under section 285BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the financial year.
CBDT has authorized National Securities Depository Limited (NSDL) to receive AIR.
NSDL receives the AIRs through its country-wide network of front offices called TIN Facilitation Centers (TIN-FCs) and on-line through web-based facility. The data received by TIN-FCs and data received on-line is collated by NSDL and disseminated tothe Income Tax Department.
Section 194 IB :- Payment of Rent by Certain Individuals or HUF
(Introduced in Finance Act 2017)
- DEDUCTOR : – Individuals or Hindu undivided family (other than Covered u/s 194 I).
- DEDUCTEE : – Resident
- Threshold Limit = Rs.50,000 P.M or PART of Month
- Rate of TDS = 5%
- Rate of TDS = 20% (NO PAN)
Point of Deduction : – Earlier of the following : –
- At the time of credit of rent (for the last month in the previous year or the last month of the tenancy if the property is vacated before during the year), OR
- At the time of payment.
Section 194M – TDS on Payment to Resident Contractors and Professionals
(As per Finance Bill of 2019)
- DEDUCTOR : – Individuals or Hindu undivided family (other than Covered u/s 194 C/ 194H/194J)
- DEDUCTEE : – Resident
- Threshold Limit = Rs.50,00,000 P.A (Greater than)
- Rate of TDS = 5%
- Rate of TDS = 20% (NO PAN)
Point of Deduction : – Earlier of the following : –
- At the time of credit of the amount, OR
- At the time of payment
This section is effective from 1 September 2019 onwards
Time limit on depositing TDS
Payment is made by or on behalf of the government : -TDS paid to the department on the day of the payment
Payment is made other than above :- TDS will have to be paid –
- For any Other month :– within 7 days from the end of the month in which the tax deduction is made
- For March : – Up to April 30 of the next FY.
How to fill Form For Challan TDS Returns
- Log on to tin.nsdl.com
- Select ‘Services and go to “e-payment-Pay taxes online”.
- Select any one of 3 tabs which you required to filled
- TDS on Property (Form 26QB)
- TDS on Rent of Property (Form 26QC)
- TDSon Payment to Resident Contractors and Professionals (Form 26QD)
- Fill all other relevant / necessary details above 3 tabs.
- Once you fill in all the other relevant / necessary details, the last tab is ‘payment info’.
2 modes of payment
- E-tax payment immediately (through net banking facility)
- e-tax payment on the subsequent date (e-payment of taxes by visiting any of the Bank branches)
Choose the any one mode of payment and click on ‘Proceed’.
- If you choose net banking, you will be able to login into your bank and pay 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 the property)
- 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 visit to any one of authorized bank along with your cheque. The bank will proceed with the online payment and generate your challan.
Register yourself on TRACES portal
- Register on Traces as TAX PAYER with your PAN Card Number and the Challan number.
- After that, you can download TDS certificate in FORM 16B/16C /16D after specified period of time and issue this Form to payee.
The author of the above article is CA Jayprakash Pandey. CA Jayprakash Pandey is a Practicing CA under the firm name Jayprakash P & Company with Office at Mumbai, having 5+ years of professional experience, excellence in the field of TAX and audit services. If you have any query then author can be reached out – [email protected]
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