Paying TDS on apartment purchase

After April 2013, it is now mandatory on the individual to cut TDS before making payment to the builder. This seems to be the sole responsibility of the buyer even if he has taken a loan from the bank. So before you raise a demand note on the bank cut the mandatory 1% taxes for TDS and raise the demand note only for the remaining amount with the bank.

The following are the step-by-step process for paying the tax and collecting the FORM 16B which then you need to submit to the builder as well as you need it for your registration.

1. Like you pay advance tax, one could pay this tax through the TIN site. This as far as i know has to be done by 7th of the following month after the payment was done to the builder else there will be penalty or interest to be payed on TDS.
2. Click on Form 26QB and pay the taxes. you would need the PAN card of the builder as well as the details of the company like address, part payment detail, complete property price etc.
3. Once you fill the form it will take you to online bank as specified by you and you can make the payment.
4. Once done it will give an E-Tax acknowledgement Number. Pls print it and keep as you will need this. Also print and keep the challan.
5. Now register yourselves with TRACES site if you have not done it.Click on "Register as New user" and then Tax payer to fill the form. Please specify the "First Name" though it is mentioned as non-mandatory as else you will not be able to register. Please use both Option 1 and Option 2 to fill. For this you will need TDS details of your company to fill it. Option 2 can be based on the above challan. I have seen only Option 2 not working.
6. Once registered login at the same TRACES site. And inside there is a download area where you can use the E-Tax acknowledgement number to place a request for FORM 16B.
7. Once request is raised it generates in a week (may be lesser though i have not checked).
8. You can use your DOB ddmmyyyy as password to open and print the FORM 16B.

Hope this helps.