Form 26QB

What is Form 26QB?

Form 26QB is a challan-cum-statement for reporting TDS on immovable property purchases. According to Section 194-IA, any individual buying immovable property worth more than Rs. 50 lakh must deduct TDS at 1% of the sale value at the time of transaction. This deducted amount is deposited with the government using Form 26QB.

Key Points:

• TDS deduction using Form 26QB applies only to immovable property purchased after June 1st, 2013.

• Buyers do not need a Tax Deduction Account Number (TAN) to collect and pay TDS.

• PAN details of both buyer and seller are required for TDS deduction using Form 26QB.

Requirements Associated with Form 26QB

Section 194-IA outlines several rules:

• TDS Rate: 1% of the sale value.

• Property Value Threshold: TDS is not required if the property cost is below Rs. 50 lakh.

• Multiple Buyers/Sellers: Multiple Form 26QBs are required.

• Installment Payments: TDS is deducted on a pro-rata basis.

• Form 16B: After deducting and paying TDS, the buyer must issue Form 16B (TDS certificate) to the seller within 15 days.

• Agricultural Land: TDS deduction is not required for agricultural land (specific conditions apply, consult a tax professional for details).

Penalty Charges Associated with Form 26QB

Failure to comply with TDS regulations can result in penalties:

• Non-Deduction of TDS: 1% interest levied on the amount not deducted.

• Late Payment of TDS: 1% interest per month on the unpaid TDS amount.

• Late Filing of TDS: Rs. 200 per day (Section 234E).

• General Penalty: Rs. 10,000 to Rs. 1 lakh (Section 271H).

How to Fill Form 26QB Online?

• Visit the TIN NSDL website.

• Navigate to "TDS on the sale of property" and click on “Online Form to File TDS”.

• Choose the applicable challan.

• Enter all required details: PAN details, addresses, contact information of buyer and seller, property documents, total amount paid, and tax deposited.

• Submit the form and confirm. Save the acknowledgement number.

• Print Form 26QB.

• Submit to the bank for payment via net banking.

• A challan with CIN, bank name, and payment details will be generated.

Downloading Form 16B

Form 16B can be downloaded 5 days after filing Form 26QB from the TRACES website:

• 1Visit the TRACES website.

• Register and log in using PAN details.

• Enter property transaction information.

• Enter the Acknowledgment Number, Assessment Year, and seller's PAN.

• Submit the download request and note the request number.

• Find Form 16B under “Requested Downloads”.

Conclusion

Complying with TDS regulations is essential for immovable property transactions. Form 26QB is the primary means for buyers to remit TDS. Understanding the requirements, penalties, and filing procedures ensures a smooth and compliant transaction.