26QB Penalty

Late filing of TDS Statements

If a buyer of property fails to file the required Form 26QB for TDS (Tax Deducted at Source), they will be liable to pay a fee of Rs. 200 for every day of the failure. The buyer will also be responsible for any defaults related to late deduction or payment, and interest charges may be levied. Additionally, the Assessing Officer may impose a penalty under Section 271H.

For the seller of the property, if they fail to file Form 26QB, they will not be able to claim the TDS credit. The TDS amount should be deposited to the government account through e-tax payment or authorized bank branches within seven days from the end of the month in which the deduction is made.

Penalties For non-filing of Form 26QB

If TDS (Tax Deducted at Source) is not deducted on the property transaction, a penalty of 1% per month will be levied from the date on which TDS should have been deducted to the date on which it is actually deducted.

If TDS is deducted but not remitted to the government, a penalty of 1.5% per month will be levied for the period from the date on which TDS is deducted to the actual date of payment. These penalties are applicable in case of non-filing of Form 26QB, which is mandatory for TDS payment and remittance for property transactions.

Under section 271H, the Assessing Officer has the discretion to levy a penalty when a statement required by tax laws is not submitted on time. The penalty amount must be more than Rs. 10,000 and can go up to Rs. 1 lakh. However, if the TDS is deposited with the applicable fee and interest, and the statement is submitted within one year of the prescribed time, no penalty will be levied.