As per the Income Tax Act, if the buyer purchases any property from the seller and the consideration exceeds the specified limit then the buyer is liable to file Form 26QB. Further, form 26QB is a challan-cum return statement that contains the details of the property along with the amount of tax that needs to be deducted.
What is Form 26QB?
- Any individual/HUF buying an immovable property worth INR 50 lakhs or more needs to deduct TDS. Further, TDS is applicable as per section 194IA of the Income Tax Act.
- TDS will be deducted @ 1% from the sale consideration paid to the resident seller.
- Consideration for transfer of any immovable property shall include payments made for the club membership fees, car parking fees, electricity, water facility fees, maintenance fees, advance fees, or any other charges of a similar nature.
- The buyer of the property needs to file a TDS Return in Form 26QB. Also, TAN is not compulsory for the Buyer or Seller of the property. PAN of the buyer and seller is compulsory.
- TDS will be deposited along with Form 26QB.
- The buyer needs to issue a certificate of the same in Form 16B within 15 days from the due date for furnishing the challan-cum-statement in Form 26QB.
When to file Form 26QB?
The buyer needs to file Form 26QB within 30 days from the end of the month in which the tax deduction is made.
Let’s take an example to understand this:
Shyam purchased a property from Vikas. A sales consideration of INR 54,00,000 was paid on 15th December 2020. Here, Form 26QB needs to be filed on or before 30th January 2021 and if the return is not filed within the due date then late fees of INR 200/per day will be levied till the return is filed. Also, the late fee will not exceed the amount of TDS deducted.
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 online?
- Log on to the website e-filing portal.
- Navigate to ‘e-file’ and click on ‘e-Pay tax’.
- Under e-pay tax, Click on ‘New Payment’.
- Select ‘Proceed’ under the ‘26 QB (TDS on Sale of Property)’ field.
- Fill out the complete form as applicable.
The details of the buyer will be auto-populated. The other details required to fill out the form are:
1. Residential Status of seller
2. PAN of the seller.
3. Communication details of the seller.
4. Property details
5. Amount paid/credited & tax details - After submitting, the next page will ask to select the mode of payment.
The user has the following option for payment:
1. Net banking;
2. Debit Card;
3. Pay at the Bank counter;
4. RTGS/NEFT; or
5. Payment Gateway including UPI and Credit Card.
- Select the appropriate payment mode.
Click on Continue to make the payment.
- Download the Statment cum Challan.
On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made. The statement of proof can be downloaded in PDF format.
FAQs
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 their TDS Return.
In case the TDS has not been deducted on the property purchased, a 1% interest per month on the amount not deducted would be required to pay by the buyer.
Yes, The government has facilitated the revision of this form through the TRACES account. Hence, the buyer can log in to the TRACES and make the corrections in the permitted areas.
The buyer of the property has to deduct the TDS either at the time of executing the deed or at the time of advance payment, in case any advance is paid before executing the deed.
If the seller doesn’t have a PAN, then the TDS would be deducted at the rate of 20%.
Hi @nisshant
26QB is the challan cum return statement. As soon as you file the form, TDS amount paid by you gets utilized. There are few corrections that are allowed in form 26QB. You can refer to the article below. You cannot get the refund of the taxes paid through an online method. You can contact concerned Assessing Officer (AO) of the Income Tax Department (ITD).
You can also contact Aaykar Sampark Kendra (ASK) on Toll Free No. 1800-180-1961 to ask for help.
Hope this helps!
Hi,
I had raised a form26-QB correction request, but since the correction request also had some errors, I requested the AO officer to cancel the correction request.
Now as the old request has been closed, I would like to file a new correction request. Can I register DSC and file this new request for auto approval?
Hi @Jatin_Sahu
Yes, you can file 26QB correct request with registering a DSC and file te new request.
Here’s a read for your reference on TRACES: Form 26QB Correction DSC/ AO Approval - Learn by Quicko
Hi @aakash_singh
Yes, that’s true, refund of unclaimed challan is not possible. If there is any error noticed, you can file a correction request.
Here’s a read on Form 26QB: TDS on Purchase of Property - Learn by Quicko for your reference.
Hi @amar3047
The value of consideration should be X
And the amount paid should be X/3.
For expert assistance, you can book a MEET
Hi @Anokhi_Shah
Here’s a read on form 16B for your reference. Form 16B : Certificate of TDS on Sale of Property - Learn by Quicko
Since Form 16B is downloaded and submitted online only, and a signature forms a part of filing form 16B, it is advisable to go for a digital signature.
Hi everyone,
I have a query regarding an incorrect form 26QB that I have submitted. I raised a request for correction and currently the status is showing as Pending for PAN Approval. The correction was done to update the Transaction Dates.
Can you suggest what is the next steps as this status is there since last 4 days. I am not sure if there is anything pending from my end.
Also till the correction is approved can I generate form 16b for that ?
Thanks,
Sutirtha
Hello @Sutirtha_Bagchi,
The status of TDS return - Pending for PAN approval suggests that you’ll have to ask the seller of the property to approve the corrections that you have made in the 26QB return.
Till the correction is under approval you can still download Form 16B.
Hope this helps!
Hi @Shubhamsharma,
For seller approval of PAN under correction request of 26QB, the seller will have to login to Income Tax Portal > Pending Actions tab. Select Worklist and the request will appear in For Your Action tab, and the seller can approve the request here.
Hope this helps.