Form 26QB is required to be filed at the time of purchasing an immovable property. When a property is purchased for a value of ₹50 lakh or more, the buyer must deduct TDS at 1% under Section 194-IA and deposit it with the government using a challan-cum-statement known as Form 26QB. This form must be submitted within 30 days from the end of the month in which the property transaction takes place.
What is Form 26QB?
Form 26QB is an online statement-cum-challan used to pay TDS under Section 194-IA to the government. As per this section, the buyer is required to deduct TDS at the rate of 1% on the sale consideration or the stamp duty value of the property, whichever is higher, provided the transaction value is ₹50 lakh or more.
The buyer must complete and submit Form 26QB within 30 days from the end of the month in which the TDS is deducted. The form captures complete details of the property transaction, including buyer and seller information, payment particulars, and tax details. It is available on the official Income Tax website.
A TAN is not mandatory for deducting TDS under this section. The buyer can directly file Form 26QB through the income tax portal, and the TRACES portal is not required for this purpose.
Note: TDS is to be deducted on the full value of the property and not only on the amount exceeding ₹50 lakh. For instance, if the property value is ₹90 lakh, TDS at 1% should be calculated on the entire ₹90 lakh, not just on ₹40 lakh.
Due Date for Filing Form 26QB
The buyer must file Form 26QB and deposit the TDS amount within 30 days from the end of the month in which the tax is deducted.
For example, if a property purchase transaction takes place on 15 December 2025, the TDS must be paid and Form 26QB filed on or before 30 January 2026. In case of delayed filing, a late fee of ₹200 per day will be levied until the return is submitted.
Contents of Form 26QB
- PAN of both the buyer and the seller
- Personal information of the buyer and seller
- Date of the sale agreement
- Total consideration amount and amount paid
- TDS amount deducted and date of payment
Important Points to Remember for Form 26QB – TDS Statement
- If the property payment is made in instalments, TDS must be deducted proportionately on each instalment.
- A single consolidated TDS statement cannot be filed for multiple transactions involving different sellers in the same month. Form 26QB must be submitted separately for each seller.
- When multiple property transactions occur in a financial year, the ₹50 lakh threshold applies to the aggregate value of all transactions during the year, not to individual transactions. Accordingly, Form 26QB becomes applicable once the total transaction value exceeds ₹50 lakh, even if individual transactions are below this limit.
- No TDS deduction or Form 26QB filing is required for the purchase of rural agricultural land. However, for urban agricultural land, Form 26QB compliance is mandatory.
Procedure to Pay TDS Using Form 26QB
If you want to know how to complete Form 26QB, follow the steps below:
Step 1: Visit the official Income Tax website and log in.
Step 2: Go to the ‘E-file’ section, select ‘e-Pay Tax’, and click ‘Proceed’ under ‘26QB (TDS on sale of property)’ in the ‘New Payment’ section.
Step 3: Complete the three pages by entering the required details, including:
- Buyer details
- Seller details
- Property information, tax payment details, credited or paid amount, address details, and contact information
Step 4: On the next screen, choose your payment option. You can select either ‘Pay Later’ or ‘Pay Now’, as per your preference.
Step 5: Click ‘Pay Now’ to make the TDS payment. After successful payment, the Form 26QB acknowledgement will be generated and can be downloaded.
Step 6: After Form 26QB is processed, the TDS certificate can be generated from the TRACES portal by logging in as a taxpayer.
List of Authorized Banks for TDS Payment
Below is the list of banks authorized to accept TDS payments for Form 26QB:
- Axis Bank
- Bandhan Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- City Union Bank
- DCB Bank
- Federal Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- IndusInd Bank
- Jammu & Kashmir Bank
- Karur Vysya Bank
- Kotak Mahindra Bank
- Punjab & Sind Bank
- Punjab National Bank
- RBL Bank
- South Indian Bank
- State Bank of India
- UCO Bank
- Union Bank of India
How to Download Form 26QB
To download Form 26QB, follow the steps given below:
Step 1: Visit the official Income Tax website and log in. Go to e-File > e-Pay Taxes.
Step 2: Click on Payment History. If Form 26QB has already been filed, an entry will appear under the payment type “TDS on Sale of Property (800)”. Under the Action column, you will find the option to download the Form 26QB receipt and statement.
Penalty Charges Applicable to Form 26QB
The table below outlines the penalties and their respective reasons related to Form 26QB:
| Sl. No. | Reason for Penalty | Penalty Charges |
|---|---|---|
| 1 | Delay in filing TDS | As per Section 234E, a late fee of ₹200 per day is applicable for each day of delay |
| 2 | TDS deducted but not deposited with the government | Interest at 1.5% per month is charged on the unpaid TDS amount |
| 3 | Failure to deduct TDS | Interest at 1% per month is levied on the amount on which TDS was not deducted |
| 4 | Non-filing of the required statement within the due time | Under Section 271H, a penalty ranging from ₹10,000 to ₹1,00,000 may be imposed. No penalty is applicable if TDS, along with applicable fees, interest, and the statement, is submitted within the prescribed time |
Final Word
Form 26QB is a challan-cum-statement that must be filed for depositing TDS on property transactions. For property buyers, timely filing of this form is essential to ensure compliance and to avoid significant penalties.
