Form 26QB is a TDS certificate, which is required to be filed by a buyer of property for the deduction of TDS (tax deducted at source) while making payment to a seller for the sale of a property. This form is mandatory for every person who buys a property, which is valued at more than Rs. 50 lakh. In this article, we will explain the procedure for form 26QB download and the step-by-step guide for TDS on property sale.
What is form 26QB?
Form 26QB is an online challan-cum-declaration form. As per Section 194-IA of the Income Tax Act, 1961, a buyer must deduct 1% TDS from the total amount before paying the seller (if the property is worth more than Rs. 50 lakh).
Now, this form is a way to pay this 1% TDS. It must be filled by a property buyer when purchasing an immovable property (like a flat, house, or plot) in India, if the property's value is over Rs. 50 lakh.
Let’s understand how it works:
Assume that the property is worth Rs. 90 lakh.
Now, the buyer must deduct Rs. 90,000 (which is 1% of Rs. 90 lakh) as TDS and deposit it to the government.
Please note that this deduction is not made on the extra Rs. 40 lakh (Rs. 90 lakh - Rs. 50 lakh).
However, it is made on the full Rs. 90 lakh or the stamp duty value (whichever is higher).
Please note that Form 26QB must be filed online within 30 days from the date of the property transaction. It should include these details:
Buyer's and seller’s PAN
Property details
Transaction amount
TDS amount
Payment date
The buyer must pay the deducted TDS using this form. After payment, the buyer issues a TDS certificate (Form 16B) to the seller.
When should form 26QB be filed?
If you have purchased a property, you are required to submit Form 26QB within 30 days from the end of the month in which the TDS (Tax Deducted at Source) was deducted. This rule applies to all property buyers making payments where TDS is applicable under Section 194-IA of the Income Tax Act.
For example, if you purchased a property on 15 December 2024, you must pay the TDS and file Form 26QB by 30 January 2025. Missing this deadline can attract a late filing fee of Rs. 200 per day until the form is filed. Hence, it's important to ensure timely submission to avoid additional charges and remain compliant with tax regulations.
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Procedure to pay TDS through form 26QB
Follow these simple steps to pay TDS using Form 26QB:
Step 1: Visit the Income Tax Department’s official portal and log in using your credentials.
Step 2: Go to the ‘E-file’ section, select ‘e-Pay Tax’, and under the ‘New Payment’ category, choose ‘26QB (TDS on sale of property)’ and click ‘Proceed’.
Step 3: You will need to fill in three sets of details:
Details of the buyer
Details of the seller
Property details, amount paid, tax information, communication address and contact details
Step 4: On the next screen, choose your preferred payment mode — either ‘Pay Later’ or ‘Pay Now’, depending on what suits you best.
Step 5: Click ‘Pay Now’ to make the TDS payment. Once the payment is completed, the Form 26QB Acknowledgement will be available for download.
Step 6: After processing, the TDS Certificate can be downloaded from the TRACES portal by logging in as a taxpayer.
How to download Form 26QB
To download Form 26QB, follow the below steps:
Step 1: Go to the official income tax India website.
Step 2: Click on the TDS on sale of property tab.
Step 3: Select Form 26QB option.
Step 4: Enter the details such as the buyer's PAN, seller's PAN, and the property details such as the address, purchase price, and TDS amount.
Step 5: Click on the download option to download Form 26QB in pdf format.
Penalty charges associated with form 26QB
In case the TDS payment is not made within the time limit, a penalty of 1% per month or part of the month until the payment is charged. The penalty is calculated from the date on which the TDS was deducted until the date of payment of the TDS amount.
Below is a summary of possible penalties and interest charges if you fail to comply with Form 26QB-related obligations:
Sl. No. |
Reason for penalty |
Applicable charges |
1 |
Delay in filing Form 26QB after deducting TDS |
Rs. 200 per day of delay as per Section 234E |
2 |
TDS has been deducted but not deposited with the government on time |
1.5% interest per month (or part thereof) on the unpaid TDS amount until it is paid |
3 |
TDS was not deducted at all |
1% interest per month (or part thereof) on the amount that should have been deducted as TDS |
4 |
Failure to submit the required TDS statement within the prescribed period |
Under Section 271H, a penalty between Rs. 10,000 and Rs. 1,00,000 may apply. However, this may be waived if the TDS amount, applicable interest, and late filing fees are paid within the given grace period. |
Make sure to comply with these rules to avoid hefty penalties and legal issues.
