Form 26QB: TDS on Property Sale For FY 2024-25

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What is Form 26QB?

Form 26QB is a challan-sum-statement used to pay TDS while purchasing an immovable property in India.

Who Need to Deduct TDS for Transfer of Immovable Property?

According to section 194IA of the Income Tax Act, if an individual or HUF buy a property worth Rs.50 Lakh or more, then he must deduct 1% TDS from the seller’s payment and deposit it with the government (it not applicable on agricultural land).

Who is liable to File Form 26QB?

Every buyer purchasing property for Rs. 50 Lakh or more must file this Form and deposit TDS.

If there are multiple buyers or sellers involved, each buyer must file Form 26QB separately for this share.

For Example

If there is 1 Seller and 2 Buyers

Mr. Anand and Mr. Nikhil purchased a property amounting Rs. 1 Crore from Mr. Sanket. Each buyer owns 50% share.

Here,
Mr. Anand and Mr. Nikhil share 50% = Rs. 50 lakh each.
Each buyer must file a separate Form 26QB:

Buyer Mr. Anand files Form 26QB mentioning seller Mr. Sanket
= [Rs. 1,00,00,000 @ 1%] @ 50% = Rs. 50,000

Buyer Mr. Nikhil files Form 26QB mentioning seller Mr. Sanket
= [Rs. 1,00,00,000 @ 1%] @ 50% = Rs. 50,000

If there is 2 Seller and 1 Buyers

Miss Sarika purchase an immovable property worth Rs. 1.2 Crore from Mr. Ayush and Mr. Vinesh. Each seller owns 50% share.

Here,
Buyer Miss Sarika have to file two Form 26QB separately for seller Mr. Ayush and Mr. Vinesh.

Buyer Miss Sarika files Form 26QB mentioning seller Mr. Ayush
= [Rs. 1,20,00,000 @ 1%] @ 50% = Rs. 60,000

Buyer Miss Sarika files Form 26QB mentioning seller Mr. Vinesh
= [Rs. 1,20,00,000 @ 1%] @ 50% = Rs. 60,000

If there are 2 Seller and 2 Buyers

A property worth Rs. 1.2 Crore purchased by two buyer Mr. Aryan and Mr. Bhavesh from two seller Mr. Mahesh and Mr. Anil. Each buyer owns 50% share i.e., Rs.60 lakh each.

Here,
In this case, total 4 Forms 26QB must be filed.

Buyer Mr. Aryan have to file:
For Seller Mr. Mahesh = [Rs. 1,20,00,000 @ 1% @ 50%] * 1/4 = Rs. 15,000
For Seller Mr. Anil = [Rs. 1,20,00,000 @ 1% @ 50%] * 1/4 = Rs. 15,000

Buyer Mr. Bhavesh have to file:
For Seller Mr. Mahesh = [Rs. 1,20,00,000 @ 1% @ 50%] * 1/4 = Rs. 15,000
For Seller Mr. Anil = [Rs. 1,20,00,000 @ 1% @ 50%] * 1/4 = Rs. 15,000

How to File and Pay Form 26QB Online?

  • Login to the official Income Tax portal.
  • Click on ‘E-file’ → Select ‘e-Pay Tax’.
  • In ‘New Payment’, choose ‘26QB (TDS on Property Sale)’ and click ‘Proceed’.
  • Fill the Form 26QB -> Enter details of buyer & seller (name, PAN, etc.) -> Provide property details such as address, type, value -> Enter TDS amount and payment details -> Fill in contact details and seller’s residential status.
  • Select ‘Pay Now’ to make the payment immediately. You can choose ‘Pay Later’, but you need to pay within the due date.
  • Once the payment is done, download the Form 26QB acknowledgment as proof.

How to Download Form 26QB Receipt or Challan?

  • Log in to the official Income Tax Website.
  • Click on ‘E-file‘ and select ‘e-pay taxes.’
  • Click on ‘Payment History’.
  • Look for a payment entry labeled ‘TDS on Sale of Property (800)’.
  • Under the ‘Action’ column, click on the download option.
  • Save the receipt or statement for your future reference.

How to Download TDS Certificate?

Once the payment related to TDS on property sale is done, the buyer must issue Form 16B to the seller within 15 days. If there are multiple buyers, each must pay their share of TDS separately.

Steps to Download Form 16B

  • Visit the official TRACES portal and log in using PAN.
  • Fill the details related to the property transaction.
  • Enter Acknowledgment Number, Assessment Year, and Seller’s PAN. Click Proceed.
  • Click on “Submit Request” to generate the certificate.
  • Once submitted, note the download request number.
  • Go to “Requested Downloads”, enter the request number, and download Form 16B.

Due Date to deposit TDS on the sale of property using Form 26QB

The TDS amount must be deposited within 30 days from the end of the month in which TDS was deducted with the government by filing Form 26QB.

For Example

If TDS was deducted in 8th Feb 2025, the due date for filing Form 26QB and depositing TDS would be 31st Mar 2025.

Penalties for Non-Compliance

FAQs

What is 26QB for?

Form 26QB for is for TDS deduction on the sale of property under Section 194IA.

Who will pay 1% TDS on sale of property?

The buyer is responsibility to deduct the TDS and deposit it to the government.

What is the time limit for form 26QB?

The time limit to furnish Form 26QB within 30 days from the end of the month in which the tax deduction is carried out.

What is Form 16B?

It is a TDS certificate that the buyer issues to the seller as proof of TDS payment.

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