Form 26QB: A Step-By-Step Guide
Form 26QB is a crucial document mandated by the Income Tax Department of India for reporting Tax Deducted at Source (TDS) on the purchase of immovable property. As per Section 194-IA of the Income Tax Act, 1961, any individual or Hindu Undivided Family (HUF) purchasing property (excluding agricultural land) valued at ₹50 lakh or more is required to deduct TDS at 1% of the total sale consideration. This TDS must be deposited with the government using Form 26QB within 30 days from the end of the month in which the deduction is made.
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Form 26qb
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Key Points
Step-by-Step Guide to Filing Form 26QB
Correcting Errors in Form 26QB
Key Points
Applicability: Form 26QB is applicable when the transaction value of the property exceeds ₹50 lakh.
TDS Rate: 1% of the total sale consideration.
PAN Requirement: Both buyer and seller must possess valid PANs. The buyer must obtain the seller’s PAN before executing the transaction.
TAN Not Required: Buyers are not required to obtain a Tax Deduction Account Number (TAN) for this purpose.
Deadline: TDS must be deposited using Form 26QB within 30 days from the end of the month in which the deduction is made.
Step-by-Step Guide to Filing Form 26QB
Step 1: Access the Income Tax Portal
Visit the official Income Tax e-Filing portal.
Step 2: Navigate to ‘e-Pay Tax’
After logging in, go to the ‘e-File’ section and select ‘e-Pay Tax’. In the ‘New Payment’ section, choose ’26QB (TDS on sale of property)’ and click ‘Proceed’.
Step 3: Fill in the Required Details
You will be prompted to fill in three pages of information:
Buyer and Seller Details: Enter PAN, address, and contact details for both parties.
Property Details: Provide the complete address of the property and the sale consideration amount.
TDS Details: Specify the amount of TDS deducted and the mode of payment (net banking or challan).
Step 4: Payment of TDS
After filling in the details, you can proceed to pay the TDS amount online through net banking or generate a challan for offline payment.
Step 5: Acknowledgment
Upon successful payment, an acknowledgment slip containing a unique acknowledgment number will be generated. This serves as proof of TDS payment.
Downloading Form 16B (TDS Certificate)
After the TDS payment is reflected in the seller’s Form 26AS (which may take 7-15 days), the buyer can download Form 16B by following these steps:
Log in to the TRACES website.
Navigate to the ‘Downloads’ tab and select ‘Form 16B (for Buyer)’.
Enter the seller’s PAN and the acknowledgment number of Form 26QB.
Verify the details and submit the request.
Once the request is processed, download Form 16B.
Correcting Errors in Form 26QB
If any errors are identified in the submitted Form 26QB, corrections can be made online through the TRACES portal:
Log in to the TRACES website.
Initiate a correction request by selecting ‘Request for Correction’ under the ‘Statements / Forms’ section.
Provide the necessary correction details and submit the request.
Track the status of your correction request through the portal.
Important Considerations
Multiple Buyers/Sellers: If the property has multiple buyers or sellers, each combination requires a separate Form 26QB to be filed.
Advance Payments: TDS must be deducted at the time of making advance payments as well.
Late Payment Consequences: Failure to deduct or deposit TDS on time can result in interest and penalties under the Income Tax Act.
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FAQs
1. What is Form 26QB?
Form 26QB is a challan-cum-statement used to report the TDS deducted on the purchase of immovable property (other than agricultural land) when the property value is ₹50 lakh or more.
2. Who is responsible for filing Form 26QB?
The buyer of the property is responsible for deducting TDS and filing Form 26QB.
3. What is the TDS rate for property purchases?
The applicable TDS rate is 1% of the total sale consideration.
4. Is a TAN required to file Form 26QB?
No, buyers do not need to obtain a Tax Deduction Account Number (TAN) for filing Form 26QB.
5. What is the due date for filing Form 26QB?
Form 26QB must be filed within 30 days from the end of the month in which the TDS was deducted.
6. Can I pay the TDS offline?
Yes, you can generate a challan while filing Form 26QB and pay the amount at an authorized bank branch.
7. How do I get the TDS certificate (Form 16B)?
After filing Form 26QB and payment of TDS, Form 16B can be downloaded from the TRACES portal by the buyer.
8. Can I correct a mistake in Form 26QB after submission?
Yes, you can request a correction online through the TRACES portal if any errors are made in Form 26QB.
9. What happens if I don’t file Form 26QB on time?
Late filing or non-deduction of TDS can lead to interest, penalties, and late fees under the Income Tax Act.
10. Do I need to file multiple Form 26QBs if there are joint buyers or sellers?
Yes, separate Form 26QB must be filed for each buyer-seller combination.
11. Is TDS applicable on advance payments?
Yes, TDS is applicable even if an advance is paid before executing the sale deed.
12. Where can I check the status of my Form 26QB?
You can track the status using the TIN NSDL portal or through your Form 26AS on the Income Tax e-Filing portal.