When purchasing a property, buyers are responsible for paying various taxes. According to the Finance Act, 2013, TDS (Tax Deducted at Source) applies to transactions of immovable property worth ₹50 lakh or more under Section 194IA of the Income Tax Act. Buyers must deduct TDS at the rate of 1% when making the payment for the property and then report this TDS using Form 26QB.
Here’s a comprehensive guide to Form 26QB, its purpose, download process, payment method, and consequences of not paying the required TDS.
Purpose of Form 26QB
Form 26QB is a return-cum-challan form used to report TDS deductions related to property payments under Section 194IA. Available on the TIN (Tax Information Network) website, it verifies the deducted tax.
Requirements for TDS on Immovable Properties
TDS must be deducted at the rate of 1% for transactions of ₹50 lakh or more when buying immovable property. This deducted amount needs to be reported via Form 26QB.
Steps to Download Form 26QB from the Income Tax Portal
Follow these steps to download Form 26QB:
- Visit the TIN Protean website.
- Click on “Services,” followed by “TDS on Sale of Property.”
- Select “Online form for furnishing TDS on property (Form 26QB)” when the new webpage opens.
- Complete the form with details such as PAN and communication information of the buyer and seller, property details, the amount paid, and tax deposit details.
- Submit the filled form and confirm. A new page will display a unique acknowledgement number; save this for future reference.
- Print Form 26QB: On the acknowledgement page, click “Print Form 26QB.” Then click “Submit to the bank” to make the required payment online via net banking. Proceed to the payment page using the net banking facility of various banks.
- Receive the challan counterfoil: Upon successful payment, a challan counterfoil will be displayed containing the CIN, payment details, and bank name.
The downloaded form is password protected; the password is the buyer’s PAN in block letters.
Documents Required to File Form 26QB
To file Form 26QB, you need the following documents:
- PAN of the purchaser and seller of the immovable property
- Sale deed
- Challan details of TDS deposited
- Proof of Identity and Proof of address of both buyer and seller
