Important CPC (TDS) Communication on Payment of Taxes as a “Demand Payment”, Deducted on Purchase of Immovable Property

CPC (TDS) has issued an advisory communication to the purchasers of the property regarding payment of taxes, deducted on purchase of immovable property.

The issued communication has been given below:

Dear Purchaser of Property,

Greetings from CPC (TDS)!

As part of the purchase of immovable property, you have deducted taxes in accordance with provisions of section 194IA of Income Tax Act, 1961 against Consideration exceeding Rs. 50 Lakhs.

However, the payment of the tax deducted was reported as “Demand Payment”, instead of payment under “TDS on Property” under “Form 26QB”, on the payment portal of NSDL. This resulted into the TDS amount not being reflected in Part A2 of 26AS statement of the Seller of the property and you have not been able to download TDS Certificate in Form 16B.


Had the payment been made using “Form 26QB” link, the Tax Credit would have been given to the seller of the property automatically.

To address the above mistake and to ensure transfer of Tax Credit to the Seller of the property, CPC (TDS) provisioned for the facility to exercise the option for transfer of such credit to the seller at the time of submission of request for Form 16B after Registration and Login to TRACES web-portal.

However, since you did not to exercise the option for transfer of such credit to the seller, Tax Credit was not reflected in Part A2 of Sellers Form 26AS, thereby causing inconvenience.

To address the above issue, CPC(TDS) has taken suo moto action to transfer Tax Credits into Sellers 26AS statement for the payment of TDS reported as “Demand Payment” to the extent of TDS amount mentioned therein.

You are advised to be careful in future while paying the tax deducted with reference to the above. The payment of tax deducted should be made using “Form 26QB” link at NSDL and “Demand Payment” facility is meant only for the purpose of closure of demand raised by CPC(TDS).

CPC (TDS) is committed to provide best possible services to you.


Source: TRACES

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