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Form 26QB: TDS on Sale of Property

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By Hiral Vakil on May 6, 2019
TDS

What is Form 26QB?

  • As per section 194IA of the income tax act, if any individual/ HUF buyer purchases an immovable property worth Rs. 50 lakhs or more is required to deduct TDS on payment of sales consideration.
  • TDS needs to be deducted @ 1% from the sale consideration payable to resident seller.
  • TDS deducted needs to be deposited along with Form 26QB. TAN is not compulsory for Buyer or Seller of the property. PAN of the buyer and PAN of the seller is compulsory.
  • Once TDS is deducted and deposited by the buyer of the property, he/she needs to issue certificate of the same in Form 16B within 15 days from the date of filing of Form 26QB.

When to file Form 26QB?

The due date of payment of TDS on transfer of immovable property is 30 days from the end of the month in which the deduction is made. Hence, Form 26QB needs to be filed within 30 days from the date of payment of sale consideration.

Let’s take an example for understanding: Mr. Shyam purchased property from Mr. Vikas and made payment of sales consideration on 15th March, 2018 then TDS on the same needs to be deposited on or before 30th April, 2018. Form 26QB also needs to be filed on or before 30th April, 2018.

If form 26QB is filed after the due date then late fees of Rs. 200 for every day to be paid by the buyer from the end of due date.

What are the details required to file Form 26QB?

Following information is required to file Form 26QB:

  • PAN of the buyer and seller.
  • Complete Address of buyer and seller.
  • Property Details.
  • Amount Paid/ Credited.
  • Tax Deposit details.

How to file Form 26QB?

You can file Form 26QC with following procedure:

  • Go to TIN NSDL website,
  • Go to Services> Select TDS on Rent of Property,
  • Select Online form for furnishing TDS on Rent of Property (Form 26QC)
  • Fill the following Form
  • There are two modes of payment at the bottom of the page:
    • E-tax payment immediately
    • E-tax payment on the subsequent date (By visiting any of the bank branches)
  • On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. You can verify the status of the challan in the Challan Status Inquiry at NSDL website using CIN after week.