Form 26QB Last Updated : 20 Feb 2020

TDS is applicable for sales equal or greater than Rs.50 lakh, the buyer will deduct a tax of 1% while the payment for the property is made. For TDS payments, seller has to have Form 16B while the buyer has to provide Form 26QB.

Introduction to Form 26QB:

Are you a property owner or planning to buy one? TDS is nothing but a percentage of amount deducted to be paid to the government. This TDS is taken from the total amount disbursed to the seller or builder. Form 26QB, duly filled, must be submitted by you complete with every TDS-related info. This system came into effect on 1st June 2013. When you purchase a secure property such as a home, office or piece of land, worth more than INR 50 lacs, TDS will be deducted as you pay the previous owner or builder. This is clearly specified in the Section 194-IA of the Indian Income Tax Act, 1961.

Learn more about Income Tax, Income Tax Return, efiling Income Tax

Requirements laid out in the Section 194-IA:

  • The buyer has to subtract TDS at the rate of one percent of the overall sale consideration. It is you as the buyer who should deduct the TDS and not the other party.
  • You shall not deduct TDS if the sale amount does not exceed INR 50 lacs. If it is paid in installments, then TDS has to be reduced from every payment.
  • Tax has to be disbursed on the entire sale amount. For instance, if you have purchased an apartment at INR 60 lacs, the amount taxed is the same and not 60 minus 50, which is INR 10 lacs. This is pertinent even when there are more buyers or sellers.
  • If you are the customer, then there is no need for you to get the Tax-deduction Account Number aka TAN.
  • If you are on the other side of the fence, i.e. a seller, then you must give your PAN Number. Otherwise TDS will be deducted at the rate of 20 percent. Buyer too has to provide their PAN details.
  • TDS is generally subtracted when you make the payment or at the time of giving credit to the seller, whichever is earlier.
  • This TDS has to be dropped along with completed Form 26QB within at least one week from the month end in which TDS was reduced.
  • Once the TDS is paid to the government, you (as the buyer) will be asked to provide the TDS certificate to the seller. This can be accessed in less than two weeks after the day TDS is deposited.
  • In order to pay the TDS, the seller should also get Form 16B while the buyer needs to get only Form 26QB.

Learn more about efiling Income Tax, How to file ITR

Payment through Challan 26QB (Online and Offline):

  • Visit the web portal,
  • Select the option Form 26QB. If you are corporate payer, select 0020 and others can click on 0021. Enter all the info as directed.

Form 26QB:

There are two ways to pay given towards the end of the page.

You can choose any of the two options preferred.

  • E-tax payment immediately (through net banking facility) and
  • E-tax payment on subsequent date (e-payment of taxes by going to any of the bank branches in person)

Payment Mode in Form 26QB:

If you opt for internet banking, you can easily login to your bank account and pay TDS from the comfort of your home or office. Once the payment is successful, you can print out the Challan 280 marked on 800. Keep it saved on your PC or phone.

If you are not comfortable with online payment, an e-receipt for Form 26QB with a unique Acknowledgment Number, valid for 10 days, is created for you. Submit this at any authorized lender with cheque or cash. The bank will handle the e-payment and produce the challan.

Generation of Form 16B or Form 26QB:

Are you paying TDS for the first time? Then get yourself registered on TRACES as a Tax Payer. Submit your PAN Details and the Challan number provided to you during payment.

Registering on TRACES as a Tax Payer:

Post registration, you can access your official Form 16B (if you are the seller) or Form 26QB (if you are the buyer). Verify your Form 26AS carefully one week after you paid the money. You will notice that amount deposited is shown in Part F under ‘Details of TDS on Sale of Immoveable Property u/s 194(IA) [For Buyer of Property]’. It will provide you with particulars like the number of issued TDS certificate (generated by TRACES), personal and PAN info of deductee, transacted money and date, acknowledgment number (exactly as it is specified on your Form 26QB), day on which TDS is credited and the amount.

Downloading Form 16B or Form 26QB:

Once the completed payment in Form 26AS is shown, log-in to TRACES. On the home page, you will see the tab, Application for Request of Form 16B. Click on that tab to download it. Select the Application for Request of Form 26QB to download the same. In order to complete the procedure, enter your 9-digit unique acknowledgment number plus the particulars in Part F of your Form 26AS. This will give you an application request number and the application. It will take some hours to process your request. Go to the Downloads option and click on Requested Downloads from the given dropdown list.

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