When buying an immovable property in India worth more than ₹50 lakh, the buyer must deduct 1% TDS (Tax Deducted at Source) and deposit it with the Income Tax Department. This is a mandatory requirement under Section 194-IA of the Income Tax Act.
To deposit
this TDS, the buyer must file Form 26QB, an online challan that records
the transaction details and facilitates tax payment.
Who Needs
to File Form 26QB?
- The buyer (not the seller)
is responsible for deducting and depositing TDS.
- This applies when the property
value exceeds ₹50 lakh.
- If there are multiple buyers,
each buyer must file a separate Form 26QB for their share of the payment.
Procedure
To Pay TDS Through Form 26QB
STEP 1: Go to the Income tax portal and log in using your PAN and password.
STEP 2: Navigate to the ‘e-File’
section, select ‘e-Pay Tax’, go to ‘New Payment’, and click ‘Proceed’
for ‘26QB (TDS on sale of property)’.
STEP 3: Enter buyer details, including PAN,
name, and contact information.
STEP 4: Enter seller details, including PAN,
name, residential status, and contact information.
STEP 5: Enter tax applicable, address, type
of property, date of agreement and payment, and other transaction details.
STEP 6: Verify the details and proceed to
payment.
STEP 7: Select a payment mode (Net Banking,
Debit Card, UPI, or E-Challan) and complete the transaction.
STEP 8: Download the payment challan for
future reference.
After filing Form 26QB, the buyer must download Form 16B from the TRACES portal and provide it to the seller as proof of TDS deduction. Click here to know how to download Form 16B.
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