How to claim TDS on sale of property?

When a property is being sold, the buyer has to deduct TDS on sale of the property and deposit this deducted amount with the government. The seller can later claim for the TDS refund by filing his Income Tax Return. 

Following are the circumstances under which you can claim TDS refund. By understanding them you will understand how to claim TDS on sale of property:

If the actual tax is not equal to the TDS, in that case the seller can file an Income Tax Return to claim the refund of the excess amount deducted as TDS. For this, you will need to furnish the details of your bank account and its IFSC Code, so that the Income Tax Department can refund you the excess TDS amount. 

If the seller has invested the whole or a part of the gains in some specified assets which are exempted from tax within six months of the date of transfer, then that part of the capital gain will be exempted from the tax and the taxpayer can claim for the refund. The taxpayer can invest in these specified assets to the maximum amount of Rs 50 lakhs. 

Only the deductee (Seller) can claim for a refund of TDS not the deductor (Buyer). So the credit of the taxes is allowed to the deductee only.

If the cost of the property is more than Rs. 50 lakhs, then it is liable for TDS. For this following things have to be done:

• The seller must provide its PAN number to the buyer.

• The buyer will have to fill up the ITR form online and submit it to the Income Tax Department for the TDS. 

• The seller should verify that the buyer has deposited the tax amount and it is reflected in the form 26AS Annual Tax Statement.

• Get the form 16B, which is the certificate for paying the TDS.

• E-verify your application and sign it digitally using Aadhaar based OTP or net banking.

• The Income Tax Department will send you an email to your registered email address to acknowledge and refund the TDS. 

• You can use your PAN Card Number to check the TDS refund status on

  https://incometaxindiaefiling.gov.in

  /

I hope this clarifies how to claim TDS on sale of property.

Follow these steps for how to show TDS on property in ITR:

1. Make sure that the buyer must deduct a 1% of TDS at the time of property sale if the sale value exceeds ₹50 lakhs.

2. Make sure to have a valid Permanent Account Number (PAN) and Aadhaar as these are required for TDS claim.

3. The buyer has to file Form 26QB for TDS deduction and will receive Form 16B certificate on your name.

4. You can verify the TDS deduction by checking your Form 26AS on the Income Tax Department's website.

5. To claim the TDS:

   • Report the property sale transaction in ITR under the 'Capital Gains' section.

   • Mention the deducted TDS amount.

   • Calculate your actual tax liability.

   • If the TDS amount exceeds your actual tax liability, you can claim a refund of the excess amount.

After verification by the Income Tax Department, you will receive the refund directly in your bank account.

This is all about

who can claim TDS on purchase of property

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The government levies a tax known as TDS, or Tax Deducted at Source, which is subtracted at the source from the proceeds of a property sale. If you are selling a property, you must file and claim the TDS. Doing so can save a lot of money in taxes on both the interest and principal that pay off. But, before claiming TDS on a property sale, you must determine: Is TDS on sale of property refundable? Scroll down to get the explanation.

Is TDS on Property Refundable?

If the seller claims a deduction from long-term capital gain or experienced a capital loss on the sale of the property, he or she may even be eligible for a refund by submitting an income tax return.

How to get refund of TDS on sale of property?

Punam Behl has correctly mentioned the steps to claim TDS on sale of property. There is no other option for a real estate seller to submit a TDS claim. However, using the e-tax TDS payment option, the buyer must pay TDS on the property. 

You should be aware that under the Income Tax Act Section 194IA, taxpayers who submit their ITRs on time are eligible to pay interest at a rate of 1% of the sale consideration. This is valid if the payment is worth at least Rs 50 lakh.

Real estate sellers must remember the following two crucial measures while requesting a TDS refund:

• Provide your PAN to buyer for TDS information.

• Check your Form 26AS Annual Tax Statement to see if the buyer deducted any taxes from the deposit.

I hope you found this answer helpful. 

The concept of tax is actually difficult to understand. I myself did not know much about it previously. However, when I bought a property, I discussed this with a number of people and learnt how to claim TDS on purchase of property in ITR. Do note that TDS is required to be deducted only when the stamp duty value of property or sale consideration exceeds Rs 50,00,000. Also, I have seen many people having doubts- can buyer claim TDS on property, let me tell you, Yes, TDS on a property is refundable. All you will need to do in that case is that you have to claim the TDS refund by filing the ITR.

How to claim TDS on property sale?

To claim TDS on a property, you will have to follow some steps-

• Visit the TIN (previously known as NSDL eGOV) website or click on

• Next click on TDS on sale of the property

• Next click on “

  Online form for furnishing TDS on property (Form 26QB)" seen on the left-hand side of the screen

• Click on "TDS on Sale of Property”

• Provide details as required like- PAN card details of the buyer and seller, property details, the amount paid and more

• Submit the form

• Click on Print Form 26QB

• Make the payment next

• Download the challan after the successful payment is done

How TDS on property purchase can be claimed?

Here are the steps to claim TDS on property purchase-

• Register or Log in directly on TRACES portal which is

• Click on Downloads

• Select Form 16B

• Provide details as per the property transaction- assessment year, acknowledgement number and more

• Click on Proceed next

• Note the number after you submit the form

• Click on Request Downloads

• Use the request number to search the request and download it

You will get other related details in the above answers. This is what I can say to answer the question- how to claim TDS on purchase of property in ITR.

Let me tell you first, some aspects related to TDS for real estate have been changed by the government. During property transactions, there is an extra charge levied in the name of TDS which is submitted on TRACES. While the tax is deducted, there is a provision to claim TDS refund. Let me share with you how to get TDS refund.

Who can claim TDS on sale of property?

When the buyer pays a full amount that exceeds Rs 50 lakh during property transaction, he is bound to withheld TDS from the total sum paid to the seller.

Can seller claim TDS on sale of property?

Yes, you as the seller of a property may claim TDS on sale of property. Simply file your income tax return online and request a refund of the TDS deducted on sale of immovable property.

What are the penalties for failing to file a TDS?

• According to Section 234E, the late filing fine is Rs.200 each day, up to the full amount of tax that is owed.

• If the property seller has previously paid capital gains tax, the late reporting fee might be lowered or eliminated.

• The seller must deliver the amount of the tax deduction to the government within seven days of the month after the claim was recorded,

• Section 271H states that a fine of up to 1 lakh will be imposed for failure to pay TDS on real estate.

• A fee shall be imposed as per Section 234E of the Act in the case of a default resulting from the failure to file Form 26QB immediately

I hope now you know how to get TDS refund and what are the penalties in case of failure to file TDS.

Shreya, I understand there is so much confusion regarding the TDS on sale of immovable property. I see people seeking answers to their questions online because none of us actually have been taught how it works. I was in the same position as you a few months back and I desperately wanted to know how to claim TDS refund on property sale. It would be petty of me to not thank Ms. Punam for her insights. She definitely helped me gain some clarity. I would like to add a few more things just to help you know a little more about the whole TDS concept.

First things first, you should know when is TDS deducted. So TDS is deducted if the property sale consideration or amount exceeds Rs. 50,00,000 as per the Finance Bill of 2013. The deduction is made at the rate of 1% or 0.75% of the sale consideration.

How to claim TDS refund on property sale

Since you are here asking how to claim TDS refund on sale of property, I am assuming that you are a property seller. In that case, you should first keep these two points in mind:

1. Share your PAN details with the purchaser for furnishing information regarding TDS to the Income Tax Department.

2. Verify deposit of taxes deducted by the buyer in your Form 26AS Annual Tax Statement.

As Ms. Punam has correctly mentioned, I claim TDS on sale of immovable property by filing the ITR. There is no other way to claim TDS if you are a property seller. You must know that according to the Income Tax Law, payment of interest at the rate of 0.5% per month is allowed to a taxpayer if he/she files an ITR in due time. This law is enforceable under Section 244A. 

I would say go and fill the ITR to claim TDS on sale of immovable property. 

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