What is Form 26QB for TDS? How to Download and Submit it?
While purchasing a property, buyers are liable to pay various taxes. The Finance Act, 2013 made TDS (Tax Deducted at Source) applicable for transactions of immovable property worth ₹50 lakh or more as per Section 194IA of the Income Tax Act. Buyers are required to deduct the TDS at the rate of 1% when making the payment for the property. Then, they have to furnish information about their TDS using Form 26QB.
Here’s everything you need to know about Form 26QB – its use, download process, method to pay TDS using it; and also what happens if the required TDS is not paid. So, read on!
What is Form 26QB Used for?
Form 26QB is a return-cum challan form that furnishes information about the TDS deduction pertaining to property payments under Section 194IA. The online form is available on the TIN (Tax Information Network) website and is used to verify deducted tax.
Now, let us look at various requirements for TDS on immovable properties.
How to Download Form 26QB from Income Tax Portal?
Here are the steps one should follow to download Form 26QB:
- Step 1
Visit TIN Protean website
- Step 2
Click on “Services”, followed by “TDS on Sale of Property”
- Step 3
Now click on “Online form for furnishing TDS on property (Form 26QB)” when the new web page opens.
- Step 4
Fill the complete form using details such as PAN and communication of buyer and seller, property details and amount paid and tax deposit details.
- Step 5
Submit duly-filled form and confirm. A new page appears with a unique acknowledgement number that you should save for future reference.
- Step 6
On that page itself, click on “Print Form 26QB” to print the 26QB form. Then click on “Submit to the bank” to make the required payment online through net banking. Then proceed to the payment page through the netbanking facility of various banks.
- Step 7
A challan counterfoil will be displayed containing CIN, payment details and bank name on successful payment.
The downloaded form is password protected and the password is PAN of the buyer in block letters.
Documents Required to File Form 26QB
One needs the following documents to file Form 26QB
- PAN of purchaser and seller of the immovable property.
- Sale deed
- Challan details of TDS deposited
- Proof of Identity and Proof of address of both buyer and seller
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How to Pay TDS through Form 26QB Online?
Follow the steps below to pay TDS through form 26qb online:
Step 1: Go to the official website of TIN
Visit the official website of Tax Information Network and click on the ‘Services’ tab. 
Step 2: Click on the option e-Payment: Pay Taxes Online
A dropdown menu will appear. Click on ‘e-Payment: Pay Taxes Online’. 
Step 3: Click on TDS on Property (Form 26QB)
On the new page, find ‘TDS on Property (Form 26QB)’ and click on ‘Proceed’. 
Step 4: Fill out the given form within the allotted time (30 minutes)
Enter all the details. Make sure you have the following information at hand before filling it out:
– Name of buyer/seller
– PAN of seller/buyer
– Property details
– Contact information of buyer/seller
– Tax deposit details
On the Taxpayer Information page, enter the tax code (0020 for corporate or 0021 for non-corporate payer), residential status, buyer’s PAN and seller’s PAN.
Step 5: Enter other details
On the next two tabs, enter the full address of the transferee, transferor and property purchased. Next, fill in the payment amount in words and figures along with the tax amount deposited.
Step 6: Make the payment
Choose the mode of payment on the next page. You have two options- ‘e-tax payment immediately’ or ‘e-tax payment on the subsequent date’. Next, click on ‘Proceed’ and pay the TDS amount that you deducted.
Implications of Non-filing or Late Filing of Form 26QB
There are different implications of not filing this form for the buyer and seller of the property. First, let’s see the implications of non-filing Form 26QB on the seller:
- The seller will not be able to claim TDS credit in case Form 26QB is not submitted on time.
Now, let’s consider the implications of non-filing Form 26QB on the buyer:
- The I-T Department is liable to levy a late filing fee on the buyer under Section 234E of Income Tax Act. The fee is ₹200 for each day of non filing.
- The buyer is also liable to pay a late payment fee and interest on late payments under section 271H of the Income Tax Act. This penalty will be levied by the Assessing Officer on a case-by-case basis.
Section 194IA: A Few Key Things to Know
- Only buyers are required to deduct TDS for transactions of ₹50 lakh or more while sellers have no such requirement
- If this payment is made in instalments, TDS is deductible on each instalment
- TDS should be deducted at the time of payment or when crediting to the seller
- TDS is applicable to the whole transaction value. For example, if the property you have purchased costs ₹70 lakh, 1% TDS of ₹70,000 would be applicable.
- At the time of making a TDS payment, both buyer and seller have to submit their PAN. Otherwise, TDS will be charged at a 20% rate instead of the usual 1%
- After deducting TDS, buyers must send the TDS certificate to the seller. He/she can access this two weeks after depositing TDS via Form 26QB. The buyer also has to obtain Form 16B and submit it to the seller.
- For immovable properties purchased after September 1 2019, their overall costs should include all charges required for the transfer of the said property. This includes fees for maintenance, car parking, electricity, water, advance charges, club membership fees, etc.
- TDS under Section 194IA of the Income Tax Act, it is applicable for all immovable properties, including commercial properties, residential properties and plots of land. However, it is not applicable to agricultural land
Final Word
Any buyer purchasing a new property has to deduct and pay TDS at a 1% rate of the overall sale within 30 days of the following month when they deducted it. They can use TIN NSDL’s website to submit the deducted tax using Form 26QB online. Failing to submit this could result in various penalties.
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FAQs
The Form 26QB needs to be filled within 30 days from the end of the month in which the TDS has been deducted.
There’s a penal interest of 1% on the amount not deducted for TDS. Then there’s a 1.5% penalty on the sum deducted each month for non-remittance of TDS to the government. Finally, there’s a ₹200 per day penalty for delay in filing TDS returns.
There are two options for TDS payment via Form 26QB. You can choose ‘e-tax payment immediately’ to log in to your bank account and make payment. The bank will display Challan 280 with bank name, payment details, CIN and a tick on 800. You can print this for proof of payment of TDS. You can also choose the tax payment option on a subsequent date to make an offline payment at an authorised bank. To do this, take a printout of the e-receipt of Form 26QB online and a unique acknowledgement number. Once you submit this with tax payment via cash or cheque to a bank, it will generate a challan.
In the case of joint transactions, each buyer has to file Form 26QB for each unique buyer-seller combination. For example, if there are two buyers and one seller, two forms will have to be filled. For three buyers and three sellers, buyers have to fill out a total of nine forms.
Deductors can view the acknowledgement number for Form 26QB in his/her annual tax statement (Form 26AS). They can also view this on the TRACES portal or the Protean-TIN website. It is necessary to enter the buyer and seller’s PAN, total payment and assessment year for retrieving this number.
The following penalties are applicable for non-filing Form 26QB:
-For non-deduction of TDS: Penalty of 1% on TDS every month
-Non-remittance: 1.5% per month till the date of payment
-Late filing: Rs. 200 per day u/s 234E
-Penalty u/s 271H: From Rs. 10,000 to Rs. 1 lakh
Yes, the Income Tax Department receives AIR (Annual Information Return) for all taxpayers recording purchase and sale of a property. From this report provided by the registrar/sub-registrar, they can figure out if you have made a property transaction over Rs. 50 lakh.
These are some of the banks authorized to receive payment for Form 26QB:
-State Bank of India
-ICICI Bank
-Indian Bank
-Axis Bank
-Punjab National Bank
-Indian Overseas Bank
-HDFC Bank
-Bank of Maharashtra
-Central Bank of India
-IDBI Bank
-Bank of Baroda
Yes, TAN is mandatory for making deductions under TDS. TAN is a ten-digit alphanumeric number allotted by the IT Department for taxpayers who deduct or collect tax at the source.
Yes, PAN or permanent account number of seller is mandatory to file TDS return or Form 26QB. Buyers who are deducting TDS must acquire or have the PAN of the seller for the transaction to take place.
Taxpayers can view the total TDS deducted from various transactions through Form 26AS. They need to visit the e-filing portal of the IT Department and log in using their credentials. After this, they must go to “view Form 26AS section” , select the assessment year and download the PDF of form 26AS.
Yes, a taxpayer can make amendments to Form 26QB or file a revised form to make up for any errors made while filing the original form. They must log in to their TRACES account and select “online correction” under the Form 26QB section. They can complete the correction request by Net Banking or AO approval or DSC.
A taxpayer will have to deduct TDS even when amounts are paid in instalments. TDS must be deducted on every instalment made.
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