What Is Form 26QB – TDS On a Sale of Property Online

ByShakshi Saxena
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The Form 26QB is a return-cum-challan form or, more precisely, a challan form for the payment of deducted tax at Source (TDS) to the Government for all the deductions made under Section 194-IA of the Income Tax Act, 1961. This section of this Act specifically deals with any transactions involving the immovable property sale, and the TDS applicable for it along with Form 26QB is required to be submitted within 30 days or one month from the last day of the month in which the TDS amount was deducted. For example, if the transaction occurred on 14th May, Form 26QB must be submitted by 30th June.

What Are The Factors of Section 194IA

From 1st June 2013, when a person buys immovable property whose cost is more than Rs 50 lakhs, he needs to deduct tax at the source (TDS) while he pays the seller. This has been described in Section 194-IA of the Income Tax Act.

  • The person who will buy needs to deduct 1% TDS of the total sale
  • If the sale is less than 50 lakh, no TDS will be deducted
  • In case of installment payment, TDS will be removed in each installment
  • Immovable properties that are being purchased after 1st September 2019 as per budget 2019 shall include all the charges 
  • TDS needs to be paid on the overall sale amount
  • The buyer can make the payment of the TDS by using the PAN, and there is no requirement to obtain TAN
  • PAN is mandatory for the buyer and seller; it is required by the buyer while paying TDS
  • The TDS is deducted from the time of payment
  • It is to be paid by using TDS 26QB form 
  • After depositing TDS to the Government, the certificate needs to furnish to the seller in the form of 16B
Steps To Fill Form 26QB Online

Here detailed guidance on filling Form 26QB online is provided

  1. Visit the TIN NSDL website​ ( www.tin-nsdl.com ).​
  2. You will find ‘TDS on sale of property,
  3. Then click on the online form for furnishing TDS on the property. 
  4. Now choose the applicable challan as “TDS on Sale of Property”.
  5. Fill out the form entirely as applicable. A User needs to be ready with the below-mentioned information while filling the form 26QB :
  6. PAN of the Buyer & seller
  7. The communication details of buyer & seller
  8. The Property details
  9. 26QB payment Amount given
  10. Then submit the form duly filled with going to the following procedure. ​A confirmation box will appear. After the confirmation, a screen will appear with two buttons, “Submit to the bank” and “Print Form 26QB”. A distinguished acknowledgment number is also displayed on the computer screen. It is better to save this acknowledgment number for use in the future.
  11. ​​Select the option “Print Form 26QB” and click to print the form. Then click on the next opportunity, “Submit to the bank”, to make the required 26QB online payment through the internet banking method. Then go to the payment page through the internet banking facility of any bank.
  12. After successful payment, challan details will be displayed containing a CIN number, details of the amount, and bank name through which e-payment has been done. These details are proof that payment​ is being made.

Penalties Related To Form 26QB

  • Non-deduction of the TDS: Penalty of 1% interest on the amount that has not been deducted
  • On the daily filing of TDS: On each day default, a penalty of 200 will be provided
  • Non-remittance of TDS: A penalty of 1.5% of the amount per month

The Conclusion

The payment of TDS is required to be made, and the buyer of the property is responsible for doing so. It is up to him or her to provide the information regarding the transaction involving the immovable property online, using the TIN’s website. Hope this article will provide you with all the necessary information related to the filing of Form 26QB online and also the factors and penalties associated with it.