Form 26QB – TDS on Property Purchase: Filing & Compliance

Expert Assistance for Form 26QB Filing for TDS on Immovable Property Transactions

Form 26QB is the challan-cum-statement that every buyer of immovable property must file on the Income Tax e-filing portal when TDS is deducted under Section 194IA on purchase of property with consideration of ₹50 lakh or more. Unlike regular TDS returns (which require a TAN and quarterly filing), Form 26QB is a one-time filing for each property transaction — it serves both as the TDS challan (for payment) and as the statement of the transaction details. After Form 26QB is filed and the TDS is paid, Form 16B (the TDS certificate for the seller) is generated from TRACES.

Form 26QB must be filed within 30 days from the end of the month in which TDS is deducted. For instalment-based property purchases, a separate Form 26QB must be filed for each instalment payment. Our professionals provide complete Form 26QB compliance, connecting with our TDS on Purchase of Property, TDS on Rent, TDS Return Filing, and Lower Tax Deduction Certificate services.

Our Services

Form 26QB Preparation

Preparation of Form 26QB with all required details — buyer and seller PAN, property address, total consideration, stamp duty value (post Budget 2024), TDS amount, and payment date — ready for online submission.

Online Filing & Payment

Filing of Form 26QB on the Income Tax e-filing portal and completion of the TDS payment through net banking — generating the payment acknowledgement within the 30-day deadline.

Form 16B Generation

Generation of Form 16B TDS certificate for the seller from TRACES after Form 26QB is processed — and delivery to the seller for TDS credit in their Form 26AS and ITR.

Joint Property Compliance

Advisory and filing for joint purchases or joint sellers — managing the requirement to file separate Form 26QB for each buyer-seller combination and ensuring combined TDS equals 1% of total consideration.

Instalment-Based Filing

Managing Form 26QB filing for each instalment in under-construction property purchases — tracking payment dates, computing TDS per instalment, and ensuring each Form 26QB is filed within the 30-day deadline.

Form 26QB Correction

Filing of correction requests for errors in previously filed Form 26QB — including incorrect PAN, wrong consideration amount, or wrong payment date — through the TRACES portal.

Key Facts About Form 26QB

Form 26QB is a challan-cum-statement — one filing serves both as the payment record and the transaction declaration
No TAN required — buyer's PAN and seller's PAN are sufficient
Must be filed within 30 days from the end of the month of TDS deduction
Form 16B (seller's TDS certificate) is generated from TRACES within 10-15 days of Form 26QB processing
For joint buyers or sellers, separate Form 26QB must be filed for each buyer-seller combination
Budget 2024: TDS computed on higher of actual consideration or stamp duty value — Form 26QB must reflect the correct base amount

Frequently Asked Questions

How do I file Form 26QB?

To file Form 26QB: (1) log in to the Income Tax e-filing portal (incometax.gov.in) or visit the TIN-NSDL portal; (2) go to TDS on sale of property → Form 26QB; (3) select 'Resident' or 'Non-Resident' for the seller; (4) enter buyer and seller PAN, property address, agreement value, stamp duty value, and payment date; (5) compute and enter TDS amount at 1% of the higher of consideration or stamp duty value; (6) submit and make the TDS payment through net banking. An acknowledgement number is generated on successful payment.

When should Form 26QB be filed?

Form 26QB must be filed within 30 days from the end of the month in which TDS is deducted. For example, if TDS is deducted in January (i.e., payment is made to the seller in January), Form 26QB must be filed and TDS must be paid by 28th February. If TDS is deducted in March, the deadline is 30th April. Late filing attracts: interest under Section 201(1A) at 1.5% per month from the date TDS was due to be deposited; late filing fee under Section 234E at ₹200 per day; and possible penalty under Section 271C.

How does the seller claim TDS credit from Form 26QB?

After the buyer files Form 26QB and makes the TDS payment, the TDS credit appears in the seller's Form 26AS (under TDS on sale of immovable property). The buyer also downloads Form 16B from TRACES (within 15 days of Form 26QB filing) and provides it to the seller as the TDS certificate. The seller claims this TDS credit in their ITR for the year in which the property is sold, setting it off against the capital gains tax liability.

What if there are multiple buyers or multiple sellers?

Where there are multiple buyers and multiple sellers (e.g., joint purchase by a couple from joint sellers), a separate Form 26QB must be filed for each buyer-seller combination. For example, if there are 2 buyers and 2 sellers, 4 Form 26QB forms must be filed — each covering the respective buyer's share of TDS from the respective seller's share of consideration. The total TDS across all Form 26QB filings must equal 1% of the total consideration.

Can Form 26QB be filed for NRI sellers?

If the seller is a Non-Resident Indian (NRI), TDS is NOT deducted under Section 194IA. Instead, higher TDS rates apply under Section 195 — typically 20% on long-term capital gains or 30% on short-term capital gains — and the buyer must obtain a TAN and file Form 27Q. Alternatively, the NRI seller can obtain a lower TDS deduction certificate under Section 197 from their Assessing Officer, specifying a lower TDS rate. Our professionals advise on the correct TDS procedure for NRI property sellers.

Property Purchase Above ₹50 Lakh? File Form 26QB Within 30 Days.

Our professionals file Form 26QB, make the TDS payment, and generate Form 16B — complete TDS compliance for your property transaction.

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F.A.Q.

What is GSTR-9 and why is it required?

GSTR-9 is an annual GST return that summarizes all transactions reported during the financial year. It is required to ensure proper reconciliation and compliance with GST laws.

Who is required to file GSTR-9?

All regular GST-registered taxpayers are required to file GSTR-9, except composition dealers, casual taxable persons, and non-resident taxpayers.

What is the due date for filing GSTR-9?

The due date is generally 31st December following the end of the relevant financial year, unless extended by the government.

What details are included in GSTR-9?

It includes details of outward supplies, inward supplies, input tax credit claimed, taxes paid, and adjustments made during the year.

Is GSTR-9 mandatory for all taxpayers?

GSTR-9 is mandatory for most regular taxpayers, but certain small taxpayers may get exemptions based on turnover thresholds notified by the government.

What happens if GSTR-9 is not filed on time?

Late filing may result in penalties and late fees, along with potential compliance issues or notices from GST authorities.