BAJAJ BROKING
March 01, 2025
6 mins read
Form 26QB is a tax form used under Section 194-IA of the Income Tax Act, 1961, to report and pay Tax Deducted at Source (TDS) on the purchase of immovable property. When an individual buys property valued at ₹50 lakh or more, they are required to deduct 1% TDS from the sale price and remit it to the government. Form 26QB serves as the official record of this deduction. It must be filed within 30 days from the end of the month in which the TDS was deducted. The form collects essential information, including the buyer's and seller's PAN details, the transaction amount, and the TDS paid. This ensures compliance with tax laws and prevents penalties for non-compliance. It is a key component of property transactions above ₹50 lakh in India.
When filling out Form 26QB, buyers need to provide accurate details to ensure compliance with the TDS regulations under Section 194-IA of the Income Tax Act, 1961. Below is the list of key information required for filing the form.
Key Information Required:
Buyer’s PAN: The Permanent Account Number (PAN) of the buyer.
Seller’s PAN: The PAN of the seller.
Property Details: Information about the property such as its address and type.
Transaction Amount: The total amount paid for the property purchase.
TDS Deduction Amount: The 1% TDS deducted from the sale consideration.
Payment Mode: Whether the payment was made via cheque, bank transfer, or any other method.
Transaction Date: The date when the transaction took place.
Buyer’s and Seller’s Contact Details: The address and contact information for both parties.
Challan Details: Information about the TDS challan generated after payment.
Assessment Year: The year in which the TDS is being filed for the transaction.
Instalment Payment Information: In case of instalment payments, the TDS for each instalment must be reported.
Information | Details |
Buyer’s PAN | PAN of the buyer |
Seller’s PAN | PAN of the seller |
Property Details | Address and type of property |
Transaction Amount | Total amount paid for the property |
TDS Deduction Amount | 1% of the transaction amount |
Payment Mode | Mode of payment (cheque, transfer, etc.) |
Transaction Date | Date when the transaction was initiated |
Buyer’s & Seller’s Contact | Address and contact details of both buyer and seller |
Challan Details | Challan number and payment details |
Assessment Year | Year for which TDS is being filed |
Instalment Payment Details | TDS deducted per instalment (if applicable) |
Under Section 194IA of the Income Tax Act, 1961, TDS is applicable to the purchase of immovable property when the transaction value exceeds ₹50 lakh. The taxable amount for TDS deduction is the total sale consideration paid by the buyer. This includes both monetary payments and any non-monetary considerations, such as services, goods, or other assets exchanged as part of the transaction. The buyer must deduct 1% TDS from the total consideration and remit it to the government. If the seller provides a valid PAN, the TDS rate is reduced to 0.75%, ensuring compliance with tax regulations during the property transaction process.
Form 26QB is essential for reporting TDS on property transactions. Failing to comply with TDS deduction or filing requirements can lead to penalties. If TDS is not deducted or paid on time, interest charges apply. Delays in filing Form 26QB will result in additional fines. This ensures timely compliance with tax obligations and discourages non-compliance.
Violation | Penalty |
Failure to deduct TDS | 1% interest per month on the undeducted amount |
Failure to remit TDS | 1% interest per month on the unpaid TDS |
Late filing of Form 26QB | ₹200 per day, up to TDS due |
Non-submission of statements | Penalty of ₹10,000 to ₹1,00,000 |
Completing Form 26QB online for TDS payment on property transactions is a straightforward process. The following steps outline the procedure for filling and submitting Form 26QB online to ensure compliance with the Income Tax Act.
Visit the TIN NSDL Website:
Go to the official TIN NSDL website to begin the process. You will need to navigate to the section specifically for TDS on property transactions.
Select Form 26QB:
In the TDS on Sale of Property section, select the appropriate Form 26QB to begin.
Fill in the Required Details:
Provide essential details such as:
Buyer’s and seller’s PAN numbers.
Property details (address, type, etc.).
Total transaction amount.
TDS amount deducted (1% of the transaction value).
Verify Information:
Double-check all entered details to ensure accuracy. This will help avoid errors and ensure smooth filing, preventing delays in the process.
Submit the Form:
After reviewing the details, submit the form. A confirmation screen will appear, showing the acknowledgment number for future reference, ensuring easy access for tracking.
Make the TDS Payment:
Click on the "Submit to Bank" option to make the payment. Payments can be made using net banking or authorized bank platforms, making the process seamless.
Print the Form and Challan:
After successful payment, a challan is generated, and you can print the acknowledgment for your records. This acts as proof of the TDS payment made.
Issue Form 16B:
After the TDS is paid, the buyer must issue Form 16B to the seller within 15 days, which serves as proof of TDS payment, ensuring compliance.
Making an online TDS payment for Form 26QB is essential to ensuring tax compliance during property transactions. The following steps guide you through it.
Visit the TIN NSDL Website:
Go to the official TIN NSDL website to access the online payment portal for TDS on property transactions.
Select TDS on Sale of Property:
Navigate to the “TDS on Sale of Property” section and choose Form 26QB for payment.
Enter Required Details:
Provide details like PAN numbers of both the buyer and seller, the transaction amount, and TDS deducted.
Choose Payment Method;
Select a payment mode—net banking, debit/credit card, or authorized banks.
Make the Payment:
Complete the payment process, after which a challan with the CIN (Challan Identification Number) will be generated.
Download the Challan:
Save the challan and the acknowledgment for your records.
Once you have successfully filed Form 26QB and made the TDS payment, downloading the form is an important step for record-keeping.
Visit the TRACES Website:
Go to the official TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal.
Log in Using PAN:
Register and log in using the buyer’s PAN details to access the TDS certificates.
Enter Transaction Details:
Provide the acknowledgment number, assessment year, and PAN of the seller.
Download Form 26QB:
After submitting the details, click on "Submit Request" and then download the form for your records.
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Form 26QB is used to report and remit TDS on property transactions where the transaction value exceeds ₹50 lakh. It ensures compliance with Section 194IA of the Income Tax Act, 1961, making sure TDS is deducted and paid to the government on property sales.
Form 26QB must be filed by the buyer in property transactions where the sale consideration exceeds ₹50 lakh. It is the buyer's responsibility to deduct 1% TDS and submit the form to the government within 30 days of the transaction date.
Failure to file Form 26QB on time results in penalties, including ₹200 per day under Section 234E for late filing. Additionally, interest charges will apply on unpaid TDS, and there may be penalties under Section 271H for non-submission of required statements.
Form 26QB cannot be revised once it has been submitted. If an error is found after submission, the buyer must file a correction request or submit a new form with the correct details, ensuring proper compliance with tax regulations.
No, TAN (Tax Deduction Account Number) is not mandatory for filing Form 26QB. Buyers are not required to obtain TAN but must provide their PAN and the seller’s PAN when submitting the form to report TDS on property transactions.
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