Form 26QA, QB, QC
Form 26QA: Meaning, Purpose and Filing Process
In this post, we will discuss Form 26QA, 26QB, and 26QC, their purpose, and the process to file them in different situations, like property purchase, rent payments, and specified transactions.
Let’s look at these sections in detail:
Form 26QA
Form 26QA is a form under the Income Tax Act, 1961. It is used to file quarterly details of tax deducted at source (TDS) on certain specified payments. This form shows the details of TDS deducted on different payments made by the deductor during the quarter.
Form 26QB
If an individual or a Hindu Undivided Family (HUF) buys a property worth Rs. 50 lakh or more, they need to deduct Tax at Source (TDS). This is as per section 194IA of the Income Tax Act. To pay this tax, Form 26QB is used.
The rule applies to all types of immovable property like residential or commercial buildings and vacant land, but it does not include agricultural land. TDS is required only when the property price is Rs. 50 lakh or above.
Form 26QC
Form 26QC is a quarterly statement used to report the deduction of tax under section 200(3) of the Income Tax Act for salary payments at the end of the quarter.
Details of the salary paid to employees and the TDS deducted are reported in Form 24Q. If the employer has either not deducted TDS or deducted it at a lower rate, the reason for this must also be mentioned in the form.
Form 26QC has two annexures. Annexure I contains details of the challan along with the TDS break-up for each employee. Annexure II includes information on the salary paid or credited for the financial year and the net tax payable.
How to File Form 26QA, 26QB, and 26QC?
1. Form 26QA
You don’t have to file Form 26QA on your own. This form is handled by banks, not by individuals. Banks use it to keep records of interest paid on fixed deposits to residents in cases where TDS was not deducted under Section 206A.
2. Steps to file Form 26QB
If you are buying a property, you need to deduct TDS and pay it to the government. Here is the step-by-step process to pay TDS online:
Step 1: Go to the official TIN NSDL website.
Step 2: Select the option for TDS on the sale of property and click on “Online Form to File TDS”.
Step 3: Choose the challan that applies to your case.
Step 4: Fill in the required details. Keep these documents ready before starting:
- PAN of buyer and seller
- Address and contact details of both parties
- Property documents
- Total amount paid and the tax amount to be deposited
Step 5: Once all details are entered, submit the form. A confirmation screen will appear. Click confirm. An acknowledgment number will be shown. Save this number for future use.
Step 6: Take a print of Form 26QB by using the “Print Form 26QB” option.
Step 7: Click on “Submit to the bank” and make the payment using net banking. The option is available only for selected authorised banks.
Step 8: After payment, a challan will be generated with CIN, bank name and other payment details.
List of authorised banks for TDS payment:
- Central Bank of India
- Bank of Maharashtra
- Bank of India
- United Bank of India
- Union Bank of India
- Bank of Baroda
- ICICI Bank
- HDFC Bank
- Corporation Bank
- UCO Bank
- Canara Bank
- State Bank of India
- Indian Overseas Bank
- Indian Bank
- IDBI Bank
- Punjab National Bank
- Punjab and Sind Bank
- Jammu and Kashmir Bank
Important point: After paying TDS, the buyer must provide Form 16B to the seller within 15 days. This is proof of the TDS amount deposited with the government.
3. Steps to file Form 26QC online
Step 1: Go to the TIN website. From the menu, click on Services and select TDS on rent of property.
Step 2: On the next page, scroll down and click on the option to file Form 26QC online.<
Step 3: Under e-payment of taxes, select TDS on rent of property and press Proceed.
Step 4: Form 26QC has four sections. Go through each section carefully and fill in the details correctly before submitting.
Key Points to Remember
1, Form 26QB (Property Purchase TDS)
- If you buy a property worth 50 lakh or more (other than agricultural land), you have to deduct TDS.
- The buyer must deduct 1% TDS. If the seller does not have a PAN, the rate goes up to 20%.
- This TDS has to be paid online through Form 26QB within 30 days.
- After payment, the buyer needs to give Form 16B (TDS certificate) to the seller.
- If there is any delay, interest and penalties will apply.
2, Form 26QC (Rent TDS)
- If the rent you pay to a resident landlord is more than ₹50,000 in a month, TDS applies.
- The tenant has to deduct 5% TDS. If the landlord does not have a PAN, the rate will be higher.
- This deduction is made only once a year or when the tenancy ends.
- Form 26QC should be filed online within 30 days of the date of deduction.
- The tenant must also give Form 16C to the landlord. If you delay filing, penalties will be charged.
By that, we have come to the end of this post. If you have any questions or thoughts, please share them in the comments. We will reply to you soon.
