Form 26QB: TDS on Sale of Property

Introduction

Form 26QB is a challan-cum-statement form used for the payment of TDS (tax deducted at source) on the sale of immovable property in India. It is applicable when the buyer purchases any property from the seller and the consideration exceeds Rs 50 lakh. The buyer is liable to deduct TDS at 1% of the property value and deposit it to the government through Form 26QB within 30 days from the end of the month in which the tax was deducted. The buyer can also download Form 16B, which is a certificate of TDS, from the TRACES portal after 5 days of making the payment. For more details, you can visit the official websites of the Income Tax Department or TIN-NSDL. You can also read some articles that explain the process of filing Form 26QB and Form 16B. I hope this information is helpful to you.

Requirements Associated with Form 26QB

Form 26QB is a quarterly TDS statement that is required to be filed by the deductor under Section 200 of the Income Tax Act, 1961. It is a statement that provides details of the TDS deducted during a particular quarter and the payment made to the recipient.

Here are some requirements associated with Form 26QB:

1. Filing frequency: Form 26QB is required to be filed on a quarterly basis, i.e., once in three months. The due dates for filing Form 26QB are:

– April to June: July 31
– July to September: October 31
– October to December: January 31
– January to March: May 31

2. Details required: Form 26QB requires the following details to be furnished:

– Name, address, and PAN of the deductor and deductee (recipient)
– Nature of payment and the amount deducted as TDS during the quarter
– Total amount paid during the quarter, including TDS deducted
– Breakup of TDS deducted based on different heads of income (if applicable)
– Grand total of TDS deducted during the quarter
– Total amount paid during the quarter, excluding TDS deducted
– Grand total of TDS paid during the financial year (up to the end of the quarter)
– Grand total of TDS payable during the financial year (up to the end of the quarter)

3. Verification and submission: Form 26QB must be digitally signed by an authorized person and submitted through the e-filing website. The form should be submitted in PDF format, and a verification code (EVC) is required to be generated before submitting it online. The EVC is generated by logging in to the e-filing website using digital signature credentials.

Penalty Charges Associated with Form 26QB

According to the Income Tax Act, 1961, there are various penalty charges associated with Form 26QB, which is used for the payment of TDS on the sale of immovable property. Here is a summary of the penalties:

If the buyer fails to deduct TDS, they will have to pay 1% interest per month on the amount that should have been deducted.
If the buyer deducts TDS but does not pay it to the government, they will have to pay 1.5% interest per month on the amount that was deducted.
If the buyer delays filing Form 26QB, they will have to pay a fee of Rs. 200 per day until the form is filed, as per Section 234E.
If the buyer fails to file Form 26QB within one year from the due date, they will also face a penalty ranging from Rs. 10,000 to Rs. 1,00,000, under Section 271H.

How to Fill Form 26QB Online?

Here is a step-by-step guide on how to fill Form 26QB online:

1. Login to your e-filing account on the Income Tax Department’s official website.

2. Click on the ‘e-File’ tab and select ‘Quarterly TDS Return (Form 26QB)’ from the list of returns.

3. Select the relevant assessment year and quarter for which you want to file Form 26QB.

4. Enter your PAN and the PAN of the deductee (recipient) in the respective fields.

5. Fill in the details of the deductor, such as name, address, and contact information.

6. Fill in the details of the deductee (recipient), such as name, address, and contact information.

7. Enter the nature of payment, such as salary, interest, or commission, and the amount deducted as TDS during the quarter.

8. Fill in the total amount paid during the quarter, including TDS deducted.

9. Breakup TDS based on different heads of income (if applicable).

10. Enter the grand total of TDS deducted during the quarter.

11. Enter the grand total of TDS paid during the financial year (up to the end of the quarter).

12. Enter the grand total of TDS payable during the financial year (up to the end of the quarter).

13. Verify all details entered in Form 26QB and click on ‘Preview’ to review your submission before final submission.

14. If you are satisfied with your submission, click on ‘Submit’ to submit Form 26QB online. You will receive an acknowledgement receipt upon successful submission of Form 26QB online.

Here are Some Authorized Banks Through Which one can Make Payments of TDS:

Yes, here is a list of authorized banks through which one can make payments of TDS:

1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Canara Bank
4. Union Bank of India (UBI)
5. Bank of Baroda (BoB)
6. Indian Bank
7. Central Bank of India
8. Syndicate Bank
9. Allahabad Bank
10. Andhra Bank
11. Corporation Bank
12. UCO Bank
13. Oriental Bank of Commerce (OBC)
14. IFCI Limited
15. Indian Overseas Bank (IOB)
16. Punjab & Sind Bank
17. Vijaya Bank
18. Dena Bank
19. United Bank of India (UBI)
20. Punjab & Delhi Bank Limited
21. Axis Bank Limited (formerly known as UTI Bank Limited)
22. Federal Bank Limited
23. Catholic Syrian Bank Limited (CSB)
24. South Indian Bank Limited (SIB)
25. Karur Vysya Bank Limited (KVB)
26. Indian Home Loan Finance Company Limited (IHFL)
27. RBL Bank Limited (RBL)
28. Lakshmi Vilas Bank Limited (LVB)
29. Tamilnad Mercantile Bank Limited (TMB)
30. City Union Bank Limited (CUBL)

Conclusion

Form 26QB is a quarterly return form used for deducting and reporting TDS (Tax Deducted at Source) on certain payments made by a deductor to a deductee. In the context of sale of property, Form 26QB is used to report TDS deducted on capital gains earned by the deductee (seller) from the sale of property.