Form 26QB is a form used by buyers to file their tax deducted at source (TDS) return for the sale of a property. The form is provided by the Income Tax Department and comes under the purview of Section 194IA of the Indian Income Tax Act, 1961. It requires sellers to deduct a certain percentage of tax from property sales, ranging from 1% to 30%, depending on the amount of sale. This article will discuss everything about form 26QB and the meaning of 26QB TDS return.
What is Form 26QB?
26QB TDS return meaning is simple; it is a form used by buyers to file tax deducted at source (TDS) returns for the sale of a property. It is provided by the Income Tax Department and falls under Section 194IA of the Indian Income Tax Act, 1961. This form contains all the relevant information related to the purchase of immovable properties, such as the date of purchase, the amount paid, and the PAN number of the buyer.
Requirements Associated with Form 26QB
● Form 26QB must be filled in full and accurately to avoid any problems
● The form should have all the relevant details of the buyer as well as the seller, along with PAN numbers
● Payment challan 280 should also be attached along with form 16A
● The form has to be submitted within 30 days from the date of purchase
● A form 26QB TDS return reference number should be provided
● Buyer does not have to get TDS deducted if the amount is less than Rs.50 Lakhs
● Form 26QB has to be filed in case of transfer/sale of immovable property
● If agricultural land is sold, then form 26QB does not have to be filled
The land won't be considered agricultural under these two conditions:
● A land with a population of more than 10,000 people per sq. km coming under the jurisdiction of the cantonment area.
● Area of land used for the non-agricultural purpose is more than 1/3rd of the total area
Distance From Cantonment Area
Less Than 10 Km
< 10,000/sq. km
More Than 10 Km
≥ 10,000/sq. km
By filing form 26QB, buyers can ensure that they pay the right amount of tax on property purchases in a timely manner. This form is an important part of the taxation process and must be filed correctly for the buyer to avoid any tax-related problems.
Penalty Charges Associated with Form 26QB
Non-deduction of TDS
1% per month from the date of sale till the date of deduction
Late filing of form 26QB
Interest at the rate of 1.5% per month from the due date till the actual date of filing
Delay in filing of TDS returns form 26QB
Penalty of Rs. 200/day up to the maximum amount of tax not deducted
Delay in payment form 26QB
Interest at 1% per month on the tax amount due from the date after which it should have been deducted till the actual date of payment
Non-submission of form 26QB
Penalty of Rs. 10,000 under Section 271H of the Income Tax Act
It is important to note that the penalties may be reduced in certain cases, such as if it is established that failure to file form 26QB was due to reasonable cause.
How to Fill Form 26QB Online?
1. Visit the NSDL website and log in using your PAN number, email id, and password
2. Click on form 26QB from the list of e-forms
3. Enter all details such as PAN numbers of both buyer and seller, form 16A/challan 280 information, etc.
4. Calculate the TDS amount to be paid based on form 26QB
5. Generate form 26QB and save it
6. Submit form 26QB along with form 16A/challan 280 information to NSDL website
7. An acknowledgment form will be issued, which can be used as proof of filing form 26QB
8. Finally form 26QB TDS return reference number will be provided, which can be used for future communication on form 26QB with the Income Tax Department
It is vital to keep a record of form 26QB and form 16A/challan 280 information along with form 26QB TDS return reference number for future reference. This will help buyers in case of any query or dispute related to form 26QB from the Income Tax Department.
With form 26QB, buyers can ensure that they pay the right amount of tax on property purchases and avoid any legal implications due to Delay in filing form 26QB. Therefore, it is important for buyers to take the necessary steps for form 26QB online filing and ensure that form 26QB is filled and submitted in a timely manner.
Here are Some Authorized Banks Through Which one can Make Payments of TDS:
● State Bank of India
● Canara Bank
● HDFC Bank
● Axis Bank
● ICICI Bank
● Punjab National Bank
● Union Bank of India
● Kotak Mahindra Bank.
These banks provide convenient payment options such as net banking, credit cards, and debit cards for form 26QB payment.
Form 26QB Download
Form 26QB can be downloaded from the Income Tax e-Filing website. To download form 26QB, one must:
1. Log in to the official Income Tax e-Filing website
2. Select the 'Downloads' menu
3. Choose form '26QB.'
4. Download form 26QB in PDF format
5. Open form 26QB form PDF viewer and fill the form with the necessary details as mentioned above
6. Submit form 26QB after calculating the TDS amount to be paid
7. Finally, an acknowledgment form will be issued that can be used as proof of filing form 26QB
Form 26QB is an important form filed at the time of property purchase.
In conclusion, form 26QB is a basic form that must be filled out and submitted while purchasing any property. This form is easy to fill and submit online, thereby avoiding any complications in the future. Therefore, buyers should ensure that form 26QB is filled and submitted on time for a smooth real estate transaction.
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Frequently Asked Questions
Yes, you can claim the TDS deducted on the sale of the property by filing form 26QB. This form is available on the Income Tax e-Filing website and can be downloaded in PDF format. After filling form 26QB with necessary details such as PAN numbers of both buyer and seller, form 16A/challan 280 information, etc.
Under the Income Tax Act, failing to deduct TDS on payment of purchase consideration for immovable property can attract a penalty and interest. Buyers should ensure that form 26QB is filled and submitted in a timely manner to avoid any penalties.
Yes, form 26QB can be revised if there is any discrepancy in the form. To revise form 26QB, one must log in to the Income Tax e-Filing website and select form '26QB' from the list of e-forms.
Yes, form 26QB should be filled and submitted to the NSDL website along with form 16A/challan 280 information before the registration of the property is done. An acknowledgment form will be issued, which can be used as proof of filing form 26QB.
In such cases, TDS is deducted at the rate of 20% instead of the applicable rate. Buyers should keep form 26QB and form 16A/challan 280 information along with form 26QB TDS return reference number for future reference. This will help buyers in case of any query or dispute related to form 26QB from the Income Tax Department.
You can deduct TDS on property purchases even without a PAN Number. To do this, form 26QB needs to be filled and submitted along with form 16A/challan 280 information to the NSDL website.
An interest rate of 1% p.m. is applicable for any late payment or non-payment of form 26QB. Therefore, buyers should ensure that form 26QB is filled and submitted as soon as possible to avoid any penalty or interest charges.
You have two options for this:
● Form 26QB payment can be made through a net banking account or Challan 280.
● You can generate form 26QB e-payment form from the official Income Tax website. Once form 26QB is generated, you can pay tax through a credit/debit card using the form.