How To Download And Fill Form 26QB For TDS Payment On Purchase/Sale Of Property?

Form 26QB should be filed on purchase of immovable property. Section 194-IA deals with TDS deduction on purchase of property. If you buy a property by paying at least Rs. 50 lakhs, TDS should be deducted under section 194-IA at 1%, and it should be remitted to the government using a challan cum statement called form 26QB. It should be filed within 30 days from the end of the month in which the transaction took place.

A person does not need to possess a TAN for this TDS deduction, and this form can be filed directly through the income tax portal. TRACES portal is not required to file form 26QB. This article explains in detail the meaning, applicability, procedure to file and other important information related to form 26QB.

What Is Form 26QB?

26QB is an online statement-cum-challan form used for the payment of TDS u/s 194 IA to the government. Under Section 194-IA of the Act, a buyer should deduct TDS at 1% of the sum or the stamp duty value of such property, whichever is higher, only if the property value for transactions is more than or equal to Rs.50 lakh. The buyer must fill out this form within a stipulated time for making a TDS payment on the sale of a property. This form requires all details of the property along with the details of buyers, sellers, tax deposits, and so on. It is available on the Income Tax website. 

Note: TDS should be deducted on entire amount, not only on the amount crossing Rs. 50 lakhs. For example, if the sale value is Rs. 90 lakhs, TDS should be deducted at 1% for Rs. 90 lakhs, not only Rs.40 lakhs (Rs. 90 lakhs - Rs. 40 lakhs).

Form 26QB Due Date

If you are a buyer, then you must file and submit Form 26QB within 30 days from the month’s end for which the tax was deducted. For a comprehensive understanding, let’s consider an example:

Suppose you buy a property from a friend, and the transaction was initiated on 15 December 2024. In this case, you must submit the TDS amount on or before 30 January 2025. If you fail to file the return within the stipulated due date, a late fee of Rs. 200 per day will be imposed. 

Contents of Form 26QB

• PAN of the buyer and seller
• Personal details of buyer and seller
• Date of sale agreement
• Total sale amount and amount paid
• TDS deducted and date of deposit

Points to remember for Form 26 QB - TDS Statement

• If payment is made in instalments, TDS needs to be deducted on pro-rata basis for each instalment.
• You cannot file a consolidated TDS statement for multiple transactions with many sellers done in the same month. Form 26QB should be filed seller-wise.
• If many sales have happened during the financial year, the limit of Rs. 50 lakhs should be considered for the total amount of transactions undertaken during the year, not separate transactions. Therefore form 26QB should be filed when the total sales during the year crosses Rs. 50 lakhs, even when the individual transaction is within Rs. 50 lakhs.
• In case of a rural agricultural land, no TDS needs to be deducted, and no form 26QB compliance is required as well. But for urban agricultural land, you still need to file form 26QB. 

Procedure To Pay TDS Through Form 26QB

If you are wondering how to fill out Form 26QB, here is the step-by-step guide:

Step 1: Navigate to the official Income Tax Website and log in 

Step 2: Navigate to the 'E-file' section, choose 'e-pay Tax', then click the 'Proceed' button for '26QB(TDS on sale of property)' in the 'New payment' section.

Step 3: You must fill three Pages by providing the necessary information. 

1. Buyer basic details
2. Seller basic details,
3. Property details, Tax deposit details, the amount credited or paid, address details, and communication or contact details. 

Step 4: On the next page, select your preferred payment mode. You can choose either of the two options - '' ‘Pay later’ or '' ‘Pay Now’ as per your convenience.

Step 5: Click ‘Paynow’ to pay the required TDS amount. After this, Form 26QB acknowledgement will be generated and can be downloaded.

Step 6: Once Form 26QB is processed, you can generate the TDS Certificate from the TRACES Portal by logging in as a Tax Payer.

List of Authorized Banks for TDS Payment

How To Download Form 26QB?

To know the steps for form 26QB download, scroll down: 

Step 1: Navigate to the official Income Tax Website and log in. Select on e-file > e-pay taxes. 

Step 2: Select Payment history. If Form 26QB was already filed, then you will see an entry under the type of payment: TDS on Sale of Property (800). Under Action, you will get the option to download the receipt, statement of Form 26QB 

Here’s a sample Form 26QB.

Form 26QB PDF Download

You can download the PDF format of Form 26QB here.

Penalty Charges Associated With Form 26QB

The table given below discusses the penalty charges and possible reasons related to Form 26QB:

Final Word

Form 26QB is a challan cum return statement that is required to file for the deposit of TDS on the property. If you are a purchaser, filing this form within the stipulated date is imperative to avoid hefty penalty charges. 

Related Articles
All about Tax Deducted at Source – TDS Meaning, Filing, Return & Due Dates

What is Tax Deducted at Source (TDS)

TDS on Salary Under Section 192

Section 194IA - How to File TDS on Sale of Property

TDS Return Filing Guide