Are you planning to buy an immovable property in India valued at over ₹50 lakhs? If yes, then understanding and filing Form 26QB correctly is critical to remain compliant with the Income Tax Act, 1961. Our expert-led Form 26QB Filing Services are designed to simplify the process, avoid penalties, and ensure peace of mind.
In this article, we explain everything about Form 26QB, including when and why it’s required, how to file it, and how we can help.
Form 26QB is a TDS (Tax Deducted at Source) return-cum-challan that must be filed by the buyer of a property when the value of the property is ₹50 lakh or more. According to Section 194-IA of the Income Tax Act, the buyer must deduct 1% TDS on the transaction value and deposit it with the government.
✔️ Buyer Responsibility
It is the buyer, not the seller, who is required to deduct and file TDS through Form 26QB.
When Should Form 26QB Be Filed?
The TDS must be deducted at the time of payment (whether full or part) to the seller and must be deposited with the government within 30 days from the end of the month in which the payment is made.
Requirements Under Section 194-IA
To comply with Section 194-IA, here are the key conditions:
• The property must be immovable (i.e., building, part of a building, or land—other than agricultural land).
• The transaction value must be ₹50 lakhs or more.
• TDS rate is 1% on the total consideration amount.
• PAN of both buyer and seller must be valid.
• TDS must be paid via Form 26QB.
You can file Form 26QB through the TIN NSDL website by following these steps:
1. Visit the TIN NSDL website.
2. Go to “TDS on Property (Form 26QB)” under “Services”.
3. Select “Online Form for furnishing TDS on property”.
4. Enter buyer and seller PAN, address, property details, payment information, and tax amount.
5. Submit the form and pay the TDS via Net Banking or e-Payment.
6. After payment, download the acknowledgment and Form 16B (TDS certificate).
Here’s how the TDS payment process works:
1. Deduct 1% TDS at the time of making payment to the seller.
2. Fill Form 26QB online with accurate transaction details.
3. Pay TDS via authorized bank portal or through NSDL e-payment.
4. Generate and issue Form 16B (TDS Certificate) to the seller within 15 days of filing.
Filing Form 26QB late or not filing at all can result in heavy penalties:
| Default | Penalty/Consequence |
|---|---|
| Late filing | ₹200 per day under Section 234E (up to TDS amount) |
| Non-deduction of TDS | Penalty equal to TDS not deducted |
| Non-payment of TDS | Interest @1.5% per month under Section 201(1A) |
| Non-filing of Form 26QB | Penalty up to ₹1,00,000 under Section 271H |
The buyer of the property is responsible for deducting 1% TDS and filing Form 26QB. The seller has no obligation to file this form.
Yes, TDS must be deducted and Form 26QB filed for each installment payment if the total property value exceeds ₹50 lakhs—even for under-construction properties.
No. Form 26QB can only be filed online through the TIN-NSDL or TRACES portals.
Yes. Each buyer-seller combination requires a separate Form 26QB. For example, if there are 2 buyers and 2 sellers, a total of 4 forms must be filed.
Late filing or non-filing can lead to:
• Late fee of ₹200 per day (under Section 234E)
• Interest on unpaid TDS
• Penalties up to ₹1 lakh (under Section 271H)
No. TAN is not required. You only need valid PAN numbers of both buyer and seller.
Form 16B is a TDS certificate issued by the buyer to the seller after paying TDS through Form 26QB. It can be downloaded from the TRACES website after filing and payment.
Yes. Some corrections (such as PAN, address, amount, etc.) can be made by submitting a correction request via the TRACES portal. However, not all fields are editable, so filing accurately the first time is crucial.
Simply contact us via phone, email, or our online form. We'll guide you through a short checklist and handle the entire filing process for you—quickly, accurately, and affordably.
TDS is deducted on the total property value, not on the individual buyer’s share. However, each buyer must deduct and deposit TDS proportionate to their share and file Form 26QB separately.
You can pay TDS online through:
• Net banking (authorized banks only)
• e-payment gateway
• If you choose offline mode (challan), you must generate the challan and deposit it at an authorized bank branch.
Yes, but Form 26QB is meant for resident seller and resident buyer transactions. If the seller is an NRI, TDS must be deducted under Section 195, not 194-IA, and the process is different.
Corrections can be made via TRACES portal for certain fields (PAN, amount, date, etc.). However, not all fields are editable, and corrections can be time-consuming.
Yes. TDS is applicable regardless of the payment source. Even if the bank is making direct payments to the seller, the buyer must ensure 1% TDS is deducted and paid.
Form 26QB must be filed for each installment if the payment is split over multiple months. Every time a payment is made, a new Form 26QB must be filed.
Yes, excess TDS paid can be claimed as a refund by filing a request with the Income Tax Department. It involves a verification and approval process.
Yes. As per recent compliance rules, both buyer and seller must have PAN linked with Aadhaar to avoid filing issues and mismatches.
• Form 26QB: TDS payment form filed by the buyer. • Form 16B: TDS certificate downloaded from TRACES and issued to the seller as proof of TDS deduction.
