TDS Return on Sale of Property (Form 26QB)

TDS has to be deducted by every buyer on purchase of an immovable property being building/land other than agriculture land if the purchase value exceeds Rs. 50 lakh.

TDS is to be deducted from whole amount to be paid. For eg. if a property is bought for Rs 70 lakh then TDS has to be deducted on the entire amount that is Rs 70 lakh, not on just the Rs 20 lakh that exceeds the Rs 50 lakh threshold.

PAN of the seller is mandatory for deducting TDS and filing Form 26QB. It is buyer’s responsibility to acquire the PAN from the seller(s) before effecting the transaction. Neither the buyer, nor the seller is required to procure the TAN. Only PAN of both the parties is to be quoted.

The Form 26QB challan has to be filled by each buyer for every unique buyer-seller combination for their respective share. In this Expert'se, you will need to fill two form 26QB - one between you and your friend and another between you and your friend’s spouse.

From June 1st 2013, when a buyer (Indian Resident) buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50 lakhs, he has to deduct TDS when he pays the seller. So, TDS is required to be deducted and you will also have to pay late fee and interest.

TDS has to be deducted at the time of making the payment, whether in lump sum or installments. TDS has to be deducted and deposited within 7 days of the next month in which payment is made. For eg. for a payment that is made in the month of September, the return has to be filed by 7th of october.

*In case TDS is not deducted, interest is payable at 1% per month
*In case TDS is deducted but not paid interest is payable at 1.5% per month
*There is late fee of Rs. 200 per day till the failure to file TDS statement continues

We cover upto 4 Challans in our package. For every additional Challan the service charge shall be Rs. 499 plus service tax.