TDS on Property Payment Form No 26QB
Let our tax experts pick the correct one and file for you!
- Authorized by ITD
- Fast & Accurate
- Assisted by Experts
Get Quote Instantly
Table of Content
- Form 26QB: TDS on Purchase of Immovable Property
- What is Form 26QB?
- When and how much TDS shall be deducted on the Sale of the Property?
Form 26QB: TDS on Purchase of Immovable Property
Under The Income Tax Act 1961, a few key rules regarding the sale and purchase of immovable property have been laid out. Such transactions are covered under Section 194-IA. The buyer of the property, also known as the deductor, is required to deduct TDS from the consideration payable to the property seller. This is required if the transaction value is more than ₹50 lakhs, and the deductor is required to issue Form-16B to the deductee (seller). All such requirements for Form-26QB have been listed under Section 194-IA. So, in this guide, we explore everything that you need to know about form 26QB.
What is Form 26QB?
Any person or HUF purchasing an immovable property worth more than Rs. 50 lakh must deduct TDS @1%. when paying the seller. The TDS amount is paid to the government by filing Form 26QB in under 30 days from the month’s end for which the TDS deduction was initiated.
For all immovable house properties, commercial property and unconstructed properties except agricultural land. TDS needs to be deducted only on the transactions where sale proceeds are Rs.50,00,000 (Fifty Lakhs) or more.
When and how much TDS shall be deducted on the Sale of the Property?
TDS is to be deducted from the stamp duty value of the property if it is more than the sale value. Also, if the value of the property exceeds ₹50 lakhs, the TDS is deducted on the entire amount and not just on the amount over and above ₹50 lakhs. For example, if Mr. B purchased a property from Mr. S for a sum of ₹60 Lacs, but the stamp duty value of such property is ₹65 Lacs. In this example, the TDS will be calculated on ₹65 lakhs and not on ₹15 lakhs (65,00,000 – 50,00,000). Under the new amendment, a TDS of 1% will be calculated and deducted on a total of ₹65 Lacs, i.e., 65,000/-, and Mr. B will be paid ₹59.35 Lacs.
Related Business Registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
