Form 26QB : TDS on Sale of Property

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.

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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?

  1. Go to TIN NSDL website,

    Go to Services> Select TDS on Sale of Property.

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

    From the left hand site list.

  3. Fill the details in the form

    Details of Buyer, Seller, Property, TDS etc needs to be added.

  4. 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.