Understanding Form 26QB

An essential document for depositing TDS @ 1% on property sales in India in excess of Rs. 50 Lakhs.

Author: CA. Gaurav Agarwal

What is Form 26QB? 

Form 26QB is a mandatory statement used to report and deposit TDS when buying a property in India in excess of Rs. 50 Lakhs

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Who Should Fill It? 

The buyer is responsible for deducting the TDS on payment made to seller. Therefore, Form 26QB should be filled by the buyer of the property.  

Seller's Responsibility 

Seller is responsible for getting his TDS deducted and also responsible to provide necessary details like PAN, Aadhar to buyer for filing Form No. 26QB online.

Form 26QB Details 

For Filing Form 26QB, The following details are required: PAN of all buyer and seller Address of all buyer and seller Property Type, Property Address, Payment details, Sale Value, Stamp Value

TDS Calculation 

TDS is calculated @ 1% of Sale Value or Stamp value which ever is more and deduct the TDS amount from the payment made to seller for purchase of property. 

Filing and Payment 

TDS so deducted by the buyer must be deposited to the Government on or before 7th of the next month and file Form No. 26QB available on Income Tax Portal.

TDS Certificate 

After successful payment, buyers receive Form 16B, a vital TDS certificate serving as proof of their tax payment. This certificate must be provided by the buyer to the seller.