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?
- Any individual/HUF buying an immovable property worth INR 50 lakhs or more needs 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 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 fee, maintenance fee, advance fee, or any other charges of similar nature.
- The buyer of the property needs to file 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 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 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 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.
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?
- Go to the TIN NSDL website,
Go to Services> Select TDS on Sale of Property.
- Click on the Online form for furnishing TDS on Sale of Property (Form 26QB)
- Fill the details in the form
Details of Buyer, Seller, Property, TDS, etc need to be added.
- 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
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.
TDS on the sale of a property is refundable if the buyer is to invest his gains in another asset.
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!
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!
Hi @KrishnaAgarwal
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
@Muskan_Balar @Bharti_Vasvani can you help here?
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!
Hi @t_bovee,
Here are answers to your various questions
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.
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.
Hi @paliya_hitesh
Here’s read on Form 26Q: TDS on other than Salary - Learn by Quicko for your refrence.
Thank you for the reference @Shrutika_Shah