Form 26QB : TDS on Sale of Property

Hiral Vakil

Form 16B

Form 26QB

TDS

TIN NSDL

Last updated on April 26th, 2021

What is Form 26QB?

Any individual/HUF buying an immovable property worth Rs. 50 lakhs or more need to deduct TDS. TDS is applicable as per section 194IA of the Income Tax Act.
TDS is deducted @ 1% from the sale consideration paid to resident seller.
The buyer of property needs to file TDS Return in Form 26QB. TAN is not compulsory for the Buyer or Seller of the property. PAN of the buyer and PAN of the seller is compulsory.
TDS needs to be deposited along with Form 26QB.
The buyer needs to issue a certificate of the same in Form 16B within 15 days from the date of filing of Form 26QB.

When to file Form 26QB?

The buyer needs to file Form 26QB within 30 days from the date of payment of sale consideration.

Let’s take an example for understanding: Shyam purchased a property from Vikas. Sales consideration of Rs. 54,00,000 was paid on 15th January 2020. Here Form needs to be filed on or before 15th February 2020. Late fees of Rs. 200 for every day is levied if form filed after the due date.

Did you Sell Property during the year?

Let our expert file TDS Return for you.

[Rated 4.8 stars by customers like you]

Did you Sell Property during the year?

Let our expert file TDS Return for you.

[Rated 4.8 stars by customers like you]

What are the details required to file Form 26QB?

The following information is required:

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

How to file Form 26QB?

Go to TIN NSDL website,
Go to Services> Select TDS on Sale of Property.
Click on Online form for furnishing TDS on Sale of Property (Form 26QB)
From the left hand site list.
Fill the details in the form
Details of Buyer, Seller, Property, TDS etc needs to be added.
Make payment of TDS and save the acknowledgement
Payment can be made wither immediately or on a later date. An acknowledgment will be generated upon successful submission.

FAQs

Can I claim TDS deducted on purchase of property?

Yes. Whenever a property is sold, a TDS of 1% is deducted by the buyer. Later, this TDS is deposited with the Government by the buyer. Hence TDS credits are allowed for the seller in his/her TDS Return.

What happens if TDS is not deducted on purchase of property?

In case the TDS has not been deducted on property purchased, a 1% interest per month on the amount not deducted would be required to pay by the buyer.

Is TDS on sale of property refundable?

TDS on sale of a property is refundable if the buyer is to invest his gains in another asset.

Got Questions? Ask Away!

Yesha says:

26/04/2021
Hey @HarshitShah

HarshitShah:

Is there any interest or penalty for non or late filing of Form 24Q & Form 26Q?

Yes, in case you have not deposited TDS by the due date, the following penalties might be applicable:
- Interest (if you do not deposit the TDS amount in time)
- Late filing fee (if you do not file by the deadline)
- Penalty (if TDS is not filed within one year of the due date)
Hope this helps!
Yesha says:

26/04/2021
Hey @HarishMehta

HarishMehta:

Could you also tell me what are form 24, 27 and 27E for?

Form 24, 27 and 27E are forms to file TDS/TCS returns:
- Form 24 is to file TDS return detailing Salary Payments
- Form 27 is to file TDS return detailing Foreign or NRI payment other than salary
- Form 27E is to file TCS returns
Hope this helps!
Nireka says:

05/05/2021

Hi @KrishnaAgarwal

Form 27C (under Section 206C)

Form 27C declaration shall be furnished in duplicate to the person who is responsible to collect tax (i.e Seller.) Then, seller shall deliver to the Chief Commissioner or Commissioner, one copy of the declaration referred to on or before the seventh day of the month next following the month in which the declaration is furnished to the seller.

Learn by Quicko – 9 Mar 19

Form 27C: Declaration of exemption under TCS | Learn by Quicko

Form 27C is a document which can exempt a payment from tax collected at source. This form can be used subject to authorisation of Income Tax Department.

Estimated reading time: 2 minutes