How to Download Form 26QB and Fill Online

What is Form 26QB?

Form 26QB is an online challan-cum-declaration form required when a buyer purchases an immovable property (such as a flat, house or plot) in India with a value exceeding ₹50 lakh. Under Section 194-IA of the Income Tax Act, 1961, the buyer must deduct 1 % TDS (tax deducted at source) on the full amount (or the stamp duty value, whichever is higher).
For example, if a property is worth ₹90 lakh, the buyer must deduct ₹90,000 (1 %) before making payment.

When must Form 26QB be filed?

The form must be filed and the TDS deposited within 30 days from the end of the month in which the payment to the seller (and the TDS deduction) took place.
For instance: if the payment was made on 15 December 2024, then the filing deadline is 30 January 2025.
Failure to comply may lead to a penalty of ₹200 per day until filing is done.

Step-by-Step: How to pay TDS via Form 26QB

1. Visit the official Income Tax Department portal and log in to your account.
2. Under “E-file”, select “e-Pay Tax”, then choose “26QB (TDS on sale of property)” and click “Proceed”.
3. Provide the required details: buyer’s PAN, seller’s PAN, property particulars, amount paid, tax information, address and contact details.
4. On the next screen, select your payment mode: either “Pay Now” or “Pay Later”.
5. After payment, you will receive an acknowledgement; download and keep this for your records.
6. Log in to the TRACES portal as a taxpayer and download Form 16B (TDS certificate) for the seller.

How to Download Form 26QB

• Go to the official Income Tax website.
• Click on the “TDS on sale of property” tab.
• Select the Form 26QB option.
• Enter details such as the buyer’s PAN, seller’s PAN, property address, purchase price and TDS amount.
• Click download to obtain the Form 26QB PDF.

Penalties & Charges

In case of non-compliance (late filing or missing steps), the following apply:

• Delay in filing Form 26QB after deduction of TDS: penalty of ₹200 per day under Section 234E.
• TDS was deducted but not paid in time: interest at 1.5 % per month (or part thereof) on the unpaid TDS amount.
• TDS was not deducted at all: interest at 1 % per month (or part thereof) on the amount that should have been deducted.
• Failure to submit the required TDS statement in time: penalty under Section 271H between ₹10,000 and ₹1,00,000 (though it may be waived if TDS + interest + fees are paid within the given time).
  Note: the daily penalty of ₹200 will not exceed the actual TDS amount due.

Who Must File Form 26QB?

Any buyer purchasing an immovable property (excluding agricultural land) for ₹50 lakh or more must deduct 1 % TDS under Section 194-IA and file Form 26QB. The buyer must also issue Form 16B to the seller as proof of TDS deduction.

What Are the Key Requirements?

• Deduct 1 % TDS if the property value exceeds ₹50 lakh.
• A TAN (Tax Deduction Account Number) is not required for this transaction.
• Both buyer’s PAN and seller’s PAN are mandatory and must be correctly entered; errors may lead to complications.
• In case of multiple buyers or sellers, each buyer must file a separate Form 26QB. For example: if two buyers pay equally for a property worth ₹1 crore, each must deduct TDS on their share and file individually.
• If payment is made in installments, TDS must be deducted and paid at each instalment — not just once at the end.
• Agricultural land is excluded from the above TDS only if it qualifies as agricultural land; land within certain municipal or cantonment areas or within certain distances may not qualify and hence may attract TDS.

How to Correct Errors in Form 26QB

If you’ve made a mistake (e.g., wrong PAN, payment amount, or property details):

• Go to the TRACES portal and log in.
• Navigate to “Statements/Forms” → “Request for Correction”, and select Form 26QB.
• Submit the correction request and upload any required supporting documents.
• Once verified, your corrections will be processed.
  Prompt correction is important to avoid penalties or tax-related issues.

For the Seller: What to Keep in Mind

If you’re selling a property worth more than ₹50 lakh:

• Provide your correct PAN to the buyer; this allows the buyer to correctly report the 1% TDS.
• After the transaction, check your Form 26AS (available on the Income Tax website) to verify that TDS has been deposited under your PAN.

For the Buyer: Key Tips

If you’re buying a property valued over ₹50 lakh:

• Verify the seller’s PAN and ensure it is correctly entered when filing Form 26QB.
• Enter your PAN and the seller’s PAN accurately when filling out the form online.
• File the TDS return on time after payment; delays invite penalties.

Things to Remember

• Form 26QB is for situations when you buy an immovable property valued above ₹50 lakh under Section 194-IA.
• Deduct 1 % TDS on the full purchase price or the stamp-duty value (whichever is higher).
• File the form and deposit TDS within 30 days from the end of the month of payment.
• Issue Form 16B to the seller after TDS payment.
• TAN is not required; only PANs matter.
• If there are multiple buyers/sellers or instalment payments, follow the specific rules described above.

Disclaimer: The content on this website is for informational purposes only and does not constitute legal, financial, or professional advice. Please consult qualified experts before acting on any information. K M GATECHA & CO LLP accepts no liability for errors, omissions, or outcomes from the use of this content. This site is not an advertisement or solicitation.