TDS RETURN ON PURCHASE OF PROPERTY FORM 26QB

Key Features of Form 26QB

1. Applicability:
   • Form 26QB is mandatory for property transactions (excluding agricultural land) exceeding ₹50 lakh.
2. TDS Rate:
   • The buyer must deduct 1% TDS from the total payment to the seller.
3. No TAN Required:
   • Buyers do not need to obtain a TAN (Tax Deduction Account Number). The PAN of both the buyer and the seller is sufficient.
4. Deadline:
   • TDS must be deposited using Form 26QB within 30 days from the end of the month in which the deduction is made.
5. Form 16B:After payment, Form 16B (TDS certificate) must be generated and issued to the seller as proof of deduction.

Step-by-Step Process to File Form 26QB

1. Access the Form:
   • Visit the Income Tax Department’s e-filing portal.
2. Filing the Form:
   • Select the ‘e-Pay Tax’ option under ‘Services’.
   • Click on TDS on Property (Form 26QB).
3. Enter Required Details:
   • Buyer and seller PANs.
   • Property details, including address and transaction value.
   • TDS amount and payment details.
4. Choose Payment Mode:
   • Opt for Net Banking for online payment or Generate Challan for payment at an authorized bank branch.
5. Confirm and Submit:
   • Upon successful payment, a challan counterfoil with a Challan Identification Number (CIN) will be generated.
6. Download Form 16B:
   • Log in to the TRACES portal after 5-7 days to download Form 16B.

Documents Required to File Form 26QB

• PAN of the buyer and seller.
• Details of the property transaction, including agreement value.
• Payment proof (if already made).
• Bank account details for online payment.

Requirements Associated with Form 26QB online

Section 194-IA of the Income Tax Act, 1961 lays down specific regulations concerning the purchase and sale of immovable properties such as land, buildings, and more. These regulations include:

1. The buyer is obligated to deduct TDS at a rate of 1% from the sale value of the immovable property at the time of the transaction.
2. The buyer is exempt from deducting TDS if the property’s cost is below Rs. 50 lakh.
3. The buyer is not required to obtain a Tax Deduction Account Number (TAN) to withhold and remit TDS to the government. However, PAN details of both the buyer and the seller are necessary if TDS is deducted using Form 26QB.
4. If there are multiple buyers and sellers involved, multiple Form 26QBs will be necessary.
5. If the property payment is made through installments, the TDS is deducted proportionally across each installment.

Following the deduction and settlement of TDS, the buyer must furnish a Form 16B (TDS certificate) to the seller within 15 days. In cases where there are multiple buyers, TDS must be paid at equal rates by all parties involved.

A buyer is exempt from TDS deduction if the immovable property is categorized as agricultural land.

It’s essential to understand that the concerned land will not be classified as agricultural if the following conditions are met:

• The land, with a population exceeding 10,000, falls within the jurisdiction of a Cantonment or Municipality.
• The land is located within the specified distance as indicated below: 

Penalty Charges Associated with Form 26QB

The table given below gives the penalty charges associated with Form 26QB:

Here is a list of authorized banks through which TDS payments can be made:

• State Bank of India
• Indian Overseas Bank
• Indian Bank
• IDBI Bank
• Union Bank of India
• Bank of Baroda
• ICICI Bank
• HDFC Bank
• Punjab National Bank
• Punjab and Sind Bank
• Jammu and Kashmir Bank
• Central Bank of India
• Bank of Maharashtra
• Bank of India
• United Bank of India
• Corporation Bank
• UCO Bank
• Canara Bank

As previously noted, following the payment of TDS, it is mandatory for the buyer to furnish Form 16B to the seller within 15 days, certifying the TDS amount remitted to the government.

Form 26QB Download

To download Form 16B, follow these steps:

Step 1: Visit the official TRACES website.

Step 2: Register and log in to the TRACES portal using PAN details.

Step 3: Provide all the transaction details related to the property.

Step 4: Enter the Acknowledgment Number, Assessment Year, and PAN of the seller. Then proceed.

Step 5: Click on “Submit Request”.

Step 6: Once the download request is submitted, make a note of the download request number.

Step 7: Navigate to “Requested Downloads” and search using the download request number to locate Form 16B.

Contact Us for Hassle-Free Form 26QB Filing

Why Choose K M GATECHA & CO LLP?

At K M GATECHA & CO LLP, we understand the complexities of property transactions and TDS compliance. Here’s how we can help:

• Expert Guidance: Get step-by-step assistance with filling, filing, and generating Form 26QB.
• Accuracy Guaranteed: We ensure accurate calculation and timely compliance to avoid penalties.
• End-to-End Support: From TDS filing to downloading Form 16B, we manage it all for you.
• Tailored Services: Personalized solutions that fit your unique requirements.

Avoid the stress of TDS compliance. Let our team at K M GATECHA & CO LLP handle the process for you. With years of experience and a client-centric approach, we ensure seamless filing and compliance.