Form 26QB is a key online tax form that simplifies the process of paying Tax Deducted at Source (TDS). It's primarily used for property transactions and is mandated by the Income Tax Act, 1961. This form allows buyers to efficiently deduct and remit 1% TDS digitally, serving as both a challan and a statement. Pay your TDS on property transactions promptly to avoid hefty penalties.

Features of Form 26QB Under Section 194-IA

Here are a few features of Form 26QB you must be aware of:

  • Buyer to deduct TDS at 1% from the total sale amount when completing a specific transaction

  • TDS under Section 194-IA does not apply to transactions related to agricultural lands

  • TDS on immovable property remains inapplicable for all transactions less than ₹50 Lakhs

  • For all payments made on an instalment basis, TDS is deducted on each instalment

  • There is no need for the buyer to obtain TAN for depositing TDS

  • PAN is mandatory for both the seller and buyer

TDS Deadlines – File Your Form 26QB

As per the Finance Act, 2013, buyers need to deduct TDS on the purchase of immovable property. This requirement is under Section 194-IA of the Income Tax Act. The deduction is applicable only if the property's value exceeds ₹50 Lakhs. It applies to transactions made after June 1, 2013.

 

Regarding the due date, you need to complete Form 26QB payment within one month. Pay TDS on immovable property via Form 26QB within 30 days after the month in which the tax was deducted. Multiple forms are required for different buyers or sellers. For example, if the transaction was initiated on October 15th, you need to pay the deducted taxes before November 30th.

Step-by-Step Guide for Filling Form 26QB Online

You can file Form 26QB online on the official Income Tax website. Previously, the facility for direct tax payment was available on Protean (formerly NSDL). To complete your Form 26QB payment, log in on the official Income Tax website. Follow the steps given below:

  1. Visit the e-pay Tax portal

  2. Enter the PAN and mobile details

  3. Click on ‘Continue’ and navigate to the ‘E-file’ section 

  4. Select ‘E-pay Tax’ and click on ‘Proceed’ 

  5. Choose ’26 QB TDS on Sale of Property’ from the ‘New Payment’ section 

  6. Enter the required details

  7. Cross-check the information

  8. Proceed with payment

  9. Agree to the terms and conditions

  10. Click on ‘Submit to Bank’

  11. Authorise and complete the transaction

 

After completing the payment, you will receive a confirmation email and SMS. You can check the list of banks on the Income Tax website.

Offline Payment for Form 26QB

You can also make offline payments for Form 26QB. Download the form by following the steps given below:

  1. Visit the official Income Tax Department website

  2. Navigate to the ‘Downloads’ tab and click on ‘Income Tax Forms’

  3. Scroll to the bottom, enter page ‘18’ and click on enter

  4. Find Form 26QB and click on the PDF icon next to the form

  5. Download or print the form

  6. Visit your bank and complete the payment

 

After you complete the payment, you will receive an acknowledgement number and receipt. Save this information for future reference. Ensure that the information you put is accurate to avoid any hassles.

Penalties for Not Filling Form 26QB

If you do not file Form 26QB within the due date, you are liable to pay the following penalties.

Scenario

Associated Penalty

No TDS deduction

1% interest on the TDS amount

Non-remittance of TDS

1.5% of the TDS amount per month  

Statement not submitted within stipulated time u/s 271H

₹10,000 - ₹1 Lakh

Late TDS Return Filing 

₹200/day after defaulting 

Now that you know the procedure to pay TDS, be sure to complete all the formalities before the due date. This helps you avoid paying penalties. Remember, you need to issue Form 16B to the seller after filing Form 26QB.

 

The time frame for providing Form 16B is 15 days. The form is generally available within a week of filing Form 26QB. You can download it by visiting the TRACES portal. Provide the required information to complete the process.

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