Form 26QB — 1% TDS on Sale of Property u/s 194-IA

What is Form 26QB?

Form 26QB is the challan-cum-statement used by the buyer of an immovable property to deposit 1% TDS under Section 194-IA. It is mandatory whenever the sale consideration of a property (other than agricultural land) is ₹50 lakh or more.

Key rules

• Buyer (not the seller) is responsible for deducting and depositing the TDS.
• TDS = 1% of the entire consideration (not just the amount above ₹50L). 20% if seller does not furnish PAN.
• If multiple buyers / sellers, a separate Form 26QB must be filed for each buyer-seller combination.
• Due date — within 30 days from the end of the month in which TDS is deducted.

What we deliver

1. 26QB filing for each buyer-seller pair
2. Online challan payment via net banking / UPI
3. Form 16B download from TRACES (within 5–10 days) and delivery to seller
4. Correction handling — wrong PAN, amount, date, instalment
5. Reply to Section 200A intimation / late-fee notice

Penalty for non-filing

• Interest 1% / 1.5% per month under Section 201
• Late fee ₹200/day under Section 234E (capped at TDS amount)
• Penalty ₹10,000–₹1 lakh under Section 271H

Who needs this service

• Buyers of property with consideration of ₹50 lakh or more
• Joint buyers who must file separate Form 26QB per buyer-seller pair
• Buyers who missed filing and received a TRACES default notice
• Sellers needing Form 16B for their ITR / refund claim

Documents required

• PAN of all buyers and sellers
• Sale agreement / deed with consideration and payment dates
• Property address and stamp duty value
• Bank details used for payment

Process & timeline

1. Share sale deed, PAN of buyer(s) and seller(s), payment schedule
2. Form 26QB prepared and challan paid within 30 days of the month-end
3. Form 16B downloaded from TRACES and handed to the seller

Typical turnaround: 1–2 working days.