Buying property is a big deal for most families. You save money for years to finally own a house or land. But many people mess up one important part – paying TDS correctly.
Let me share the common mistakes buyers make and how online tax filing makes things easier.
The Biggest Mistake – Not Knowing About TDS
Here’s what happens often. Someone buys a flat for Rs 65 lakhs. They pay the full amount to the seller. Deal done, right?
Wrong. They forgot to deduct TDS.
Many buyers don’t even know they need to cut taxes before paying. This creates trouble later when the tax department sends notices.
If your property costs more than Rs 50 lakhs, you must deduct 1% as TDS. No exceptions.
Forgetting to Get PAN Details
Imagine this situation. You’re ready to pay for your new house. Everything is set. Then you realise the seller hasn’t given you their PAN card number.
Without PAN, you face a big problem. The TDS rate jumps from 1% to 20%.
On a Rs 60 lakh property, that’s Rs 12 lakhs instead of Rs 60,000. Huge difference.
The e-filing income tax system won’t even let you proceed without entering a valid PAN. This is actually helpful because it forces you to get this detail first.
Always collect PAN details before making any payment. Don’t wait till the last minute.
Wrong Calculations
Math errors happen more than you think.
Someone buying property for Rs 75 lakhs calculates 1% as Rs 70,000. The correct amount is Rs 75,000.
This Rs 5,000 difference can cause issues. The tax department notices these mistakes.
Use a calculator. Double-check your math. Better safe than sorry.
Missing the Deadline
You bought property on March 5th. You think you have plenty of time to pay TDS.
Days pass. Weeks pass. Suddenly, it’s April 10th.
The deadline was April 4th – exactly 30 days from the payment date. Now you’re late.
Late payment brings interest charges and penalties. The government doesn’t give extensions easily.
Mark the deadline on your calendar immediately after paying the seller.
Filing the Wrong Form
This confuses many people. There are different forms for different situations.
For property TDS, you need Form 26QB. Some people fill out Form 26QC or other forms by mistake.
An incorrect form means your TDS isn’t recorded properly. The seller can’t claim credit. You might have to redo everything.
Always confirm you’re using Form 26QB for property transactions.
Not Keeping Proof
You paid the TDS online. You think the job is done.
But did you download the challan? Did you give a copy to the seller?
Many buyers forget this step. Later, when questions arise, they have no proof of payment.
The seller also needs this challan to file their tax returns. Without it, they face problems too.
Save the challan. Print it. Keep it with your property papers.
How to Pay TDS on Property Correctly
Let me break down the right process on how to pay TDS on property, step by step.
Start by getting the seller’s PAN card copy. Don’t make any payment without this.
Next, visit the income tax e-filing website. You need to register if you haven’t already.
Look for the TDS on property section. Select Form 26QB.
Fill in your details – name, PAN, and address. Then add the seller’s details too.
Enter property information. Location, type of property, and sale amount.
Calculate 1% of the sale value. This is your TDS amount.
Review everything twice. Check if all details match your sale agreement.
Make the payment using net banking or a debit card. The money goes directly to the government.
Once paid, download the challan immediately. Save it in multiple places.
Give one copy to the seller within a few days. Don’t delay this.
Where E-Filing Income Tax Makes Life Easier
Online tax filing has changed how we handle these things.
Earlier, people stood in long queues at banks. Forms got lost. Payments took days to reflect.
Now everything happens online in minutes.
Speed: You can pay TDS from home. No need to visit any office.
Accuracy: The system does calculations for you. Less chance of math errors.
Records: Everything gets saved automatically. You can download receipts anytime.
Tracking: You can check payment status online. No guessing games.
Updates: The system sends confirmation emails. You know exactly what happened.
E-filing income tax portals also help you file your annual returns easily. All your TDS records stay in one place.
How Online Filing Prevents Mistakes
The e-filing system has built-in checks.
If you enter the wrong PAN format, it shows an error immediately. You can’t proceed with wrong information.
The calculator tool helps you compute TDS correctly. No manual math needed.
The system reminds you of deadlines. You get notifications before time runs out.
Form selection becomes easier. The website guides you to the right form.
Everything is step-by-step. You can’t skip important sections.
What Happens After You Pay
Once TDS is paid, several things happen automatically.
The tax department records your payment. It gets linked to both your PAN and the seller’s PAN.
The seller can see this payment in their Form 26AS. This is a tax statement everyone can download.
When the seller files their income tax return, they claim credit for this TDS. Their final tax bill has reduced.
For you, keeping records helps if questions come up later. You have proof you followed all rules.
Final Thoughts – Common Mistakes While Paying TDS on Property
Learning how to pay TDS on property saves you from future headaches. Most mistakes happen because of a lack of knowledge.
E-filing income tax has made the process much simpler than before. You don’t need to be a tax expert anymore.
Just remember the basics. Properties above Rs 50 lakhs need 1% TDS. Get PAN details first. Use Form 26QB. Pay within 30 days. Keep the challan safe.
