Form 26QB Payment
Form 26QB Payment: A Simple Guide for Property Buyers
In this post, we will discuss Form 26QB payment – a simple step-by-step guide for buyers to pay TDS when purchasing property worth over ₹50 lakh in India.
Let’s examine these sections:
What Is Form 26QB?
When you buy or sell a house or land in India, there are some income tax rules you need to follow. As per Section 194-IA of the Income Tax Act, 1961, if the property’s value is more than ₹50 lakh, the buyer has to deduct 1% TDS on the full amount or the stamp duty value, whichever is higher.
For example, if you’re buying a flat worth ₹90 lakh, then 1% TDS should be deducted on ₹90 lakh, not just on the amount above ₹50 lakh.
Now, to pay this TDS, the buyer must fill out a form called Form 26QB. It is available online at the Income Tax website. This form acts as both a challan and a statement, and it must be submitted within the time limit. You’ll need to fill in all the details, like buyer and seller PAN, property info, amount paid, and tax deducted.
That’s it. Once TDS is paid using 26QB, the seller can get a certificate (Form 16B) to show TDS has been deducted.
Procedure To Pay TDS Through Form 26QB
Here is a step-by-step guide for filling out Form 26QB:
Step 1: Go to the official Income Tax website and log in using your details.
Step 2: Go to the ‘E-file’ section, select ‘e-pay Tax’, and click ‘Proceed’ for ’26QB (TDS on property sale)’ under ‘New payment’.
Step 3: Fill three pages with the required details:
- Buyer’s basic information
- Seller’s basic information
- Property details
- Tax deposit details
- Amount paid or credited
- Address details
- Contact or communication details
Step 4: On the next page, pick how you want to pay. You can go with either “Pay Later” or “Pay Now” – whatever suits you best.
Step 5: Press the ‘Pay Now’ button to pay the TDS amount. Once done, you’ll get the Form 26QB acknowledgement, which you can download.
Step 6: After Form 26QB is processed, log in to the TRACES Portal as a Tax Payer to generate and download the TDS Certificate.
This concludes our post. Please feel free to leave any questions or comments in the box below, and we will be happy to respond.
