Buyer of Immovable property needs to deduct tax @ of 1% and it may go up to as high as 20% if the seller of Immovable property does not disclose his PAN if the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs) **Form 26QB** is a challan Form to deposit the tax so deducted by the Buyer of Immovable property to the Government Account through any of the authorised bank branches. In this case Buyer or Purchaser of the property are exempt to procure TAN which otherwise is mandatory in all cases wherever a person deducts tax (TDS). Steps to fill **form 26QB** : 1. Log on to TIN NSDL website ( www.tin-nsdl.com ). 2. Under 'TDS on sale of property', click on "Online form for furnishing TDS on property (Form 26QB)". 3. Select the applicable challan as "TDS on Sale of Property". 4. Fill the complete form as applicable. (User should be ready with the following information while filling the form 26QB : 1. PAN of the seller & buyer 2. Communication details of seller & buyer 3. Property details 4. Amount paid/credited & tax deposit details 5. Submit the duly filled form to proceed. A confirmation screen appears. After confirming, a screen appears showing two buttons as "Print Form 26QB" and "Submit to the bank". A unique acknowledgement number is also displayed on the screen. It is advisable to save this acknowledgment number for future use. Click on "Print Form 26QB" to print the form. Then click on "Submit to the bank" to make the required payment online through internet banking. Then proceed to the payment page through internet banking facility of various banks. For list of authorized banks, please refer https://onlineservices.tin.nsdl.com/etaxnew/Authorizedbanks.html 6. On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made. Note :- Form 16B is the TDS certificate to be issued by the deductor (purchaser/buyer of immovable property) to the deductee (Seller of immovable property) in respect of the taxes deducted on the sale of immovable property and deposited into the Government Account through **form 26QB**
26QB IS THE FORM FILLED BY THE SELLER OF IMMOVABLE PROPERTY TO PAY TDS @ 1% ON SALE VALUE U/S 194IA (SALE OF IMMOVABLE PROPERTY IF SALE VALUE EXCEEDS RS. 50 LAKH) NO TAN NO OF SELLER IS REQUIRED FOR FILL THE FORM. ONLY PAN OF ALL THE SELLER AND BUYER IS REUIRED. IN THIS FORM WE HAVE TO FILL SELLER AND BUYER INFORMATION WITH SALES CONSIDERATION. WE HAVE TO CAREFULLY FILL UP THE FORM ID THERE IS MORE THE ONE BUYER AND SELLER. BECAUSE WE HAVE TO DIVIDE SALES CONSIDERATION AMONG BUYER AND SELLER. (AS FULL VALUE OF CONSIDERATION MAY BRING YOU TO FACE A NOTICE FROM TDS DEPARTMENT , AS I FACE PRACTICALLY) IF WE HAVE 2 SELLER AND 3 BUYER THAN WE HAVE TO FILL UP 6 NOS OF 26QB FORMS. THANKS
From June 2013 if a property costing more than ₹5000000 is sold then TDS needs to be deducted at 1 % u/s 194 IA. If PAN is not provided by the seller then the buyer needs to deduct 20% T.D.S.. This TDS is deposited by filling form 26QB and a certificate of TDS deduction is given in form 16B to the seller. however since the use of 26AS has begun, such TDS certificates aren't of much use. You may still get the credit provided the amount is reflected in your 26AS.
Hie Gautham, A buyer of a property has to deduct TDS and deposit it to the government. This TDS is deducted from the payment made to seller of a property. Form 26QB is required to be submitted by the buyer with details of this TDS. From June 1st 2013, when a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50lakhs, he has to deduct TDS when he pays the seller. This has been laid out in Section 194-IA of the Income Tax Act. **Here are the requirements of this section:** - The buyer has to deduct TDS at 1% of the total sale consideration. Note that the buyer is required to deduct TDS, not the seller. - No TDS is deducted if sale consideration is less than Rs 50lakhs. If installments are being paid TDS has to be deducted on each installment. - Tax is to be paid on the entire sale amount. For example, if you have bought a house at Rs 55lakh, you have to pay tax on Rs 55lakh and not on Rs 5lakh (i.e. Rs 55lakh - Rs 50lakh). This is applicable even when there is more than 1 buyer or seller. - If you are the buyer, you do not need to obtain a TAN (Tax Deduction Account Number) number. -If you are the seller, you have to provide your PAN or else TDS is deducted at 20%. PAN of the buyer is also mandatory. TDS is deducted at the time of payment or at the time of giving credit to the seller, whichever is earlier. -This TDS has to be deposited along with Form 26QB within 7 days from the end of the month in which TDS was deducted. -After depositing TDS to the government, the buyer is required to furnish the TDS certificate to the seller. This is available around 10-15 days after depositing the TDS. -Thus for paying TDS the seller is required to obtain Form 16B and the buyer is required to obtain Form 26QB.
Dear Gautham, As per the new provision of the income tax act 1961, tds provision is cover the tds deduction on sale of immovable property. as per the tds provision buyer is liable to deduct tds @ 1% on purchase value of the property. and such TDS deposite by the buyer using Form 26QB. Using such form buyer pay the tds to the govt without filing any other TDS return and without holding TAN. And the credit of tds is transfer to the seller through such form. Any other query feel free to contact us Writer CA Chitranjan Agarwal