Form 26QB

Form 26QB is a form used for the payment of TDS (Tax Deducted at Source) on the transfer of immovable property. It is filed under Section 194-IA of the Income Tax Act, 1961. When an individual or a Hindu Undivided Family (HUF) sells a property, they are required to deduct TDS on the sale consideration and remit it to the government. Form 26QB is used to report and remit this TDS amount. Here are the key details about Form 26QB:

• Purpose:Form 26QB is used for the payment of TDS on the transfer of immovable property. It applies to individuals and HUFs who are liable to deduct TDS when purchasing property from a resident seller.
• Seller's Responsibility: The seller of the property is not responsible for filing Form 26QB. It is the responsibility of the buyer to deduct TDS and file the form.
• TDS Rate and Threshold: As per Section 194-IA, the buyer is required to deduct TDS at the rate of 1% of the sale consideration if it exceeds Rs. 50 lakhs. The TDS amount is then remitted to the government.
• Due Date for TDS Payment: The TDS amount deducted from the sale consideration is required to be paid within 30 days from the end of the month in which TDS was deducted.

Details Required in Form 26QB: The following details are required to be provided in Form 26QB:

• PAN (Permanent Account Number) of the buyer and seller.
• Complete details of the property being transferred, including its address, property type (residential/non-residential), and property value.
• Sale consideration amount and the TDS amount deducted.
• Payment details such as Challan Identification Number (CIN), date of payment, and the bank through which the payment was made.
• Filing and Payment Procedure: Form 26QB can be filled and submitted online on the TIN (Tax Information Network) website or through authorized banks. The TDS amount can be paid online using net banking or through designated bank branches.

• 1. Generation of Form 16B: Once Form 26QB is successfully filed and the TDS payment is made, the buyer can download Form 16B from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website. Form 16B is a certificate of the TDS deducted on the purchase of property and serves as proof of TDS payment.
• 2. Issuance of TDS Certificate: The buyer is responsible for issuing Form 16B to the seller as proof of TDS deduction. Form 16B contains details of the TDS deducted, the buyer's and seller's PAN, and the property details.
• 3. Reporting in Income Tax Return: Both the buyer and seller need to report the transaction in their income tax returns. The buyer must mention the TDS details in their tax return, while the seller needs to declare the sale proceeds from the property.

Form 26QB simplifies the process of deducting and remitting TDS on the sale of immovable property. It ensures compliance with tax regulations and facilitates the tracking and verification of TDS payments made by buyers.