Form 26QB: TDS on Sale of Property

author portrait

Hiral Vakil

Form 16B
Form 26QB
TDS
TIN NSDL
Last updated on February 8th, 2023

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 required to file Form 26QB. Also, 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?

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 Rs. 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.

Find the best plan
Find the best plan
GET EXPERT HELP
Find the best plan
Find the best plan

What are the details required to file Form 26QB?

The following information is required:

How to file Form 26QB online?

  1. Go to the TIN NSDL website,

    Go to Services> Select TDS on Sale of Property. TIN NSDL Dashboard

  2. Click on the Online form for furnishing TDS on Sale of Property (Form 26QB)

    TIN_NSDL_Select_Form26QC

  3. Fill the details in the form

    Details of Buyer, Seller, Property, TDS, etc need to be added. Fill form 26QB

  4. Make a payment of TDS and save the acknowledgment

    Payment can be made either immediately or at a later date. An acknowledgment will be generated upon successful submission.

FAQs

Can I claim TDS deducted on the purchase of the 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 their TDS Return.

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

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.

Is TDS on sale of property refundable?

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

Got Questions? Ask Away!

  1. Hey @HarshitShah

    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!

  2. Hey @HarishMehta

    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!

  3. Hi @KrishnaAgarwal

  4. Hey @taxpayer, you can file your Income-tax return can claim the tax refund for any excess tax credits available to you.
    If your total taxable income is below the basic exemption limit then you won’t have any tax payable.
    You can check the total tax credits available to you in your Form 26AS

  5. Hello @abhaykk90,

    As per section 194IB of the income tax act, if you’re liable to deduct TDS on rent paid, the rate applicable will be 5%.

    Hope this helps!

  6. Hi @t_bovee,

    Here are answers to your various questions

    1. TDS has to be deducted every month at 5%.
    2. Deducted TDS has to be deposited within 30 days from the end of the month in which TDS is deducted.
    3. Penalty of 1.5% per month or part thereof will be levied in case of a late deposit of TDS.

    However, you can file TDS return 26QC within 30 days from the end of the financial year.

    Here’s a read on What is Form 26QC? Who needs to file form 26QC? - Learn by Quicko for your reference. Hope this helps.

  7. Hi @t_bovee

    It would not be possible for us to tell you the mismatch of amounts, without seeing the documents.
    However, for expert assistance with your taxes, here’s how you can Book a MEET.

Continue the conversation on TaxQ&A

11 more replies

Participants