Form 26QB is a statement and challan used for the payment of tax deducted at source (TDS) on the purchase of immovable property. It is filed by the buyer of the property and facilitates compliance with tax regulations under Section 194IA of the Income Tax Act, 1961.
When and how much should be the TDS on the sale of the property?
TDS on the sale of property is applicable when the transaction value exceeds Rs. 50 lakh. The TDS rate under Section 194IA is fixed at 1% of the transaction value. This tax deduction is mandatory and ensures that the buyer complies with their tax obligations.
How should the deducted tax be deposited with the government in Form 26QB?
The process of depositing the deducted tax with the government via Form 26QB involves the following steps:
Filling Form 26QB: The buyer is required to fill Form 26QB online on the TIN NSDL website or authorised banks' websites. Details such as PAN of the buyer and seller, property details, transaction amount, and TDS amount are entered accurately.
Generating challan: Once the form is filled, a challan-cum-statement (Form 26QB) is generated containing details of the tax payment. The buyer must ensure all information provided is correct and complete.
Payment of TDS: After generating the Challan-cum-Statement, the buyer can make the TDS payment online through net banking or physically at authorised bank branches. Payment must be made within 30 days from the end of the month in which TDS was deducted.
TDS certificate (Form 16B): Upon successful payment, the buyer receives a TDS certificate in Form 16B. This certificate serves as proof of TDS payment and is essential for property registration.
Filing Form 26QB online: The buyer must then file Form 26QB online within seven days from the end of the month in which TDS was paid. This completes the TDS process and ensures compliance with tax regulations.
In conclusion, Form 26QB is a crucial document for facilitating TDS payment on the purchase of immovable property. Understanding its requirements and adhering to the prescribed process ensures smooth property transactions while complying with tax laws. Buyers must accurately fill Form 26QB, make timely TDS payments, and file the form promptly to avoid penalties and ensure seamless property registration.
In addition to navigating Form 26QB and TDS obligations, consider leveraging the offerings of Bajaj Finserv Home Loan to streamline your property purchase journey. With competitive interest rates, flexible repayment options, and expedited processing, Bajaj Finserv Home Loan provides tailored financial solutions to suit your needs. Whether you are a first-time buyer or looking to invest in additional properties, Bajaj Finserv Home Loan offers comprehensive support to fulfil your homeownership aspirations. Explore Bajaj Finserv Home Loan today and embark on your path towards owning your dream home with confidence.
