Form 26QB
An summary of the Form 26QB
Form 26QB is a form used when buying immovable property in India. It is used to pay and report TDS on the property transaction.
As per Section 194IA of the Income Tax Act, if the value of the property is more than ₹50 lakh, the buyer has to deduct TDS at 1 percent from the payment made to the seller. This deducted amount must be paid to the government using Form 26QB.
When calculating the property value, other charges like club membership, parking charges, maintenance fees, and similar costs should also be included. One important point is that the buyer does not need a TAN for filing Form 26QB.
Both the buyer and seller must have valid PAN details while filing the form. After filing Form 26QB and paying the TDS, the buyer must download Form 16B and give it to the seller within 15 days as proof that the TDS has been deposited.
Key Highlights of Form 26QB
| Particular | Details |
| Applicable Section | Section 194IA |
| TDS Rate | 1% |
| Property Value Limit | ₹50 lakh or more |
| Who files the form | Property buyer |
| Due date | Within 30 days from end of month |
| TAN requirement | Not required |
| Certificate issued | Form 16B |
In this post,we will discuss when it is applicable, who needs to file it, the due date, and the step by step process to file it online. We will also look at how to check its status, correct mistakes, and the penalties for late filing.
Let’s look at them in detail:Â
What is Form 26QB?
Individuals or Hindu Undivided Families who purchase a property worth ₹50 lakh or more are required to deduct Tax Deducted at Source. This rule comes under Section 194IA of the Income Tax Act. The deducted tax has to be reported and paid using Form 26QB.
This rule applies to the purchase of immovable property such as residential property, commercial property, or vacant land. However, agricultural land is not included under this rule. TDS has to be deducted only when the total sale value of the property is ₹50 lakh or more.
Who needs to file Form 26QB?
This applies to anyone involved in a property sale in India, both the buyer and the seller. The buyer has to deduct TDS at 1% from the total sale value and pay it to the government. This payment must be made online within 30 days from the date of payment to the seller. This rule is applicable only if the property value is more than ₹50 lakh.
When should Form 26QB be filed?
The buyer must complete Form 26QB within 30 days of the end of the month in which the tax deduction was made.
Step-by-step process to file Form 26QB online
2.Go to the ‘e-File’ option on the website and click on ‘e-Pay Tax’.
3.In the e-Pay Tax section, click on New Payment.
4.Under ‘26QB (TDS on Sale of Property)’, click on ‘Proceed’ to continue.
- Fill the form with all the required details. Some details of the buyer will come automatically. You need to enter the remaining details such as:
- Residential status of the seller
- PAN of the seller
- Communication details of the seller
- Property details
- Amount paid or credited and tax details
- After submitting the form, the next page will ask you to choose the payment method.
- You can make the payment using any one of the following options:
- Net banking
- Debit card
- Pay at the bank counter
- RTGS or NEFT or
- Payment can be made through the payment gateway using UPI or a credit card.
8.Select the appropriate payment mode.
Click on Continue to make the payment.
9.Download the Statement cum Challan.
On successful payment, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment​ being made. The statement of proof can be downloaded in PDF format
How to download Form 26QB
The Income Tax e-Filing website offers the option of downloading Form 26QB. To receive form 26QB, you need to:
- Login to the official Income Tax e-Filing website.
- Select the ‘Downloads’ option from the menu.
- Choose the ’26QB’ form.
- Obtain the form 26QB in PDF format by downloading.
- Access the PDF viewer for form 26QB and fill out the form with the information requested earlier.
- After calculating the TDS amount, complete form 26QB and submit it.
- Finally, we will provide an acknowledgment form as proof that you have submitted Form 26QB.
How to check Form 26QB status
After filing Form 26QB, it is important to check the status to make sure the TDS payment for the property purchase has gone through properly. Buyers can check the challan status on the website of Protean eGov Technologies using the acknowledgement number or PAN details.
Steps to check Form 26QB status:Â
- Go to the website of Protean TIN at https://www.protean-tinpan.com.
- On the homepage, find and open the option called Challan Status Inquiry.
- Enter the required details. You can use either of the following:
- Acknowledgement Number received after filing Form 26QB, or
- Buyer’s PAN and Seller’s PAN along with the transaction details.
- Submit the details to see the current status of the Form 26QB payment.
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If the status shows Pending or Failed, check the payment details again or contact your bank to resolve the issue. Checking the status on time helps ensure there is no delay in generating Form 16B for the seller.
How to correct Form 26QB mistakes
If there is any mistake in Form 26QB, the buyer (deductor) can correct it online through the TRACES website.
Here is the simple process:
- Go to the TRACES website and log in as a Taxpayer using your User ID and Password.
- After logging in, go to Statements/Forms and click on Request for Correction.
- Select the Assessment Year and choose Form 26QB as the form type. Then enter the Acknowledgement Number of the form you filed earlier.
- Check the status of the form. Once it is available for correction, select it and continue.
- Enter the Challan Identification Number (CIN) details related to the tax payment.
- Open the form and correct the required fields such as PAN of buyer or seller, amount, date, or other details. Save the changes.
- Click on Submit Correction Statement after making the corrections.
- Finally, complete the validation using Digital Signature (DSC), Net Banking, or approval from the Assessing Officer (AO).
After successful validation, the correction request will be processed.
Penalty for late filing of Form 26QB
The following table shows the penalties related to Form 26QB:
| Â Â Explanation for Penalty | Â Â Â Â Â Â Penalty Charges |
| Delay in filing the TDS | According to the regulations of Section 234E, you must pay a penalty charge of Rs 200 for every delayed day. |
| If the TDS is deducted but not paid to the government. | A penalty of 1% interest per month for not remitting TDS to the government. |
| TDS is not being deducted | A 1% interest penalty on the amount not deducted for TDS. |
| If the necessary statement is not filed within the specified period | Section 271H imposes a penalty ranging from Rs 10,000 to Rs 1 lakh. However, no penalty penalties will apply if you pay TDS along with fees, interest, and the required statement within a set time frame. |
Difference between Form 26QB and Form 16B
Form 26QB and Form 16B are both connected to TDS on sale of property under Section 194IA, but they are used for different purposes.
When a property is sold and its value is more than ₹50 lakh, the buyer has to deduct 1 percent TDS from the payment made to the seller.
First, the buyer pays this TDS to the government using Form 26QB. After the payment is done, the buyer has to download Form 16B from the TRACES portal and give it to the seller as proof that the TDS has been paid.
Key Differences:
| Basis | Form 26QB | Form 16B |
| Purpose | Used to pay and file TDS on property purchase | Given to the seller as proof that TDS has been paid |
| Type of form | Challan cum return | TDS certificate |
| Who files or issues it | Buyer files this form | Buyer gives this certificate to the seller |
| Due date | Must be filed within 30 days from the end of the month in which TDS is deducted | Must be issued within 15 days from the due date of filing Form 26QB |
| Where it is done | Buyer files this form | Buyer gives this certificate to the seller |
| Penalt | Delay in filing attracts ₹200 per day fee, limited to the TDS amount | Delay in issuing attracts ₹100 per day penalty |
In short, the buyer first pays the TDS using Form 26QB, and then gives Form 16B to the seller so that the seller can claim the TDS credit while filing the income tax return.
Conclusion
If you make money, you must pay taxes to the government. When you file your taxes, you must record your income. There are rules in place to make things easier and keep people from cheating on their taxes. Your paycheck may already deduct some taxes, so you only have to pay the remaining balance when you file your return.
By that we conclude our post on Form 26QB. If you have any questions or queries, please ask in the comments section below.
FAQs
1. What is Form 26QB used for?
Form 26QB is used to pay TDS when purchasing property above ₹50 lakh under Section 194IA.
2. What is the due date for Form 26QB?
It must be filed within 30 days from the end of the month in which TDS is deducted.
3. Can Form 26QB be revised?
Yes, corrections can be made through the TRACES portal.
4. How can I pay the tax towards the Form 26QB fee?
You can pay the tax in Form 26QB on the bank’s and TIN’s websites.
5. You can print Form 26QB from where?
If you forgot to print Form 26QB, you can find it under ‘E-tax on a subsequent date’ on the TIN’s official website. You must provide the information on the acknowledgment slip to print the form.
6. Is it important to submit the seller's PAN?
Yes, it is necessary to supply the seller’s PAN details.
7. What are the times for making an online payment?
To find out the payment times, go to the bank’s website.
8. Is it possible to pay TDS by check or cash at banks?
To learn more about e-payment, the buyer can visit an authorised bank branch.
