TDS RETURN ON PURCHASE OF PROPERTY FORM 26QB

Requirements Associated with Form 26QB

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:

How to Fill Form 26QB Online?

Buyers need to adhere to the following steps to pay TDS online:

Step 1: Go to the official website of TIN NSDL.

Step 2: Locate the section for TDS on the sale of property and select “Online Form to File TDS”.

Step 3: Choose the appropriate challan based on applicability.

Step 4: Provide all the necessary details. Users should have the following documents readily available:

• PAN details of the buyer and seller
• Address and contact details of the buyer and seller
• Property documents
• The total amount paid and the amount of tax deposited

Step 5: After entering all the required information, submit the form and click on “Confirm” once a confirmation screen appears. An acknowledgment number will be displayed on the screen, and it’s advisable to save it for future reference.

Step 6: Upon confirmation, select the “Print Form 26QB Online” option to obtain a printout.

Step 7: Proceed by clicking on the “Submit to the Bank” option to initiate payment via the net banking platform, which is available for a list of authorized banks.

Step 8: Upon completion of the payment, a challan will be generated containing the CIN, bank name, and other payment details.

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.