File Form 26QB on Sale of Property

TDS TDS Return Forms
1

Form 26QB is a challan cum return statement used for the payment of TDS (Tax Deducted at Source) on the sale of immovable property.

If you have purchased property exceeding ₹50 lakhs, then the TDS must be deducted at 1% at the time of payment of a property and you’re required to file Form 26QB to report the details of the TDS deducted and deposit it to the government.

Even if payments are made in instalments then at every instalment 1% TDS needs to be deducted and Form 26QB needs to be filed.

Moreover, if there are multiple buyers or sellers, a Form 26QB needs to be filed for each buyer-seller combination. For example, if there are two buyers and two sellers, Form 26QB needs to be filed four times for each combination.

Ensure that the PAN and Aadhaar of the seller are linked and the seller’s PAN is operative when you file Form 26QB. If the PAN is not operative, you are liable to deduct TDS at 20%. Here’s a detailed read on what happens if the seller’s PAN is inoperative.

Due date to file TDS return

As a buyer, you need to file a TDS return (Form 26QB) within 30 days from the end of the month in which the TDS was deducted.

For example, if you made the payment in the month of April 2022, then, you’re required to file form 26QB by May 30.

How to File Form 26QB from Income Tax Portal?

  1. Visit the Home | Income Tax Department
  2. Login using PAN /User Id and Password
  3. Navigate to Dashboard > E-File > e-Pay Tax
  4. Click on New Payment tab from the right side
  5. Scroll down and select the tab “TDS on Sale of Property (Form 26QB)”
  6. Form 26QB is organized in the following manner
    a. Add Buyer Details
    b. Add Seller Details
    c. Add Property Transferred Details
    d. Add Payment Details
  7. Enter all the required details and make the payment.
  8. Once the payment is made, you can view the taxpayer details and payment details under the summary section. And you can also download the Challan Receipt for future reference.

Additionally, as a buyer, you’re required to issue the TDS certificate (Form 16B) to the seller within 15 days from the due date of filing the TDS return. Form 16B is nothing but proof of TDS deducted on the sale of a property. So that seller can claim TDS credit for the same while filing an income tax return.

Here’s how you can download Form 16B

Is it possible to revise Form 26QB?

Yes, the government has facilitated to revision of this form by login into their TRACES account and making the corrections as required.

What if TDS is not deducted on the purchase of property?

If the buyer fails to deduct or deposit the TDS amount to the government, the buyer is liable to pay interest of 1.5% per month or part of the month till TDS is not deducted or deposited. Additionally, a late fee of ₹200 per day will be levied till the date Form 26QB is not filed.

Read more about Form 26QB: TDS on Purchase of Property - Learn by Quicko.

If any queries, ask them out here!

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I am trying to file correction request for Form 26QB, however, the request keeps getting failed. Any particular reason? I dont see anywhere in the internet that the correction request can get failed.

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Hi @Kajal7993

Could you please confirm the steps for the correction request of Form 26QB?

  1. Visit the TRACES website and log in to your account using your User ID and Password.
  2. Once you have logged in, select the “Defaults” option from the main menu.
  3. Navigate to 26QB > Online Correction
  4. Enter the required details such as the Financial Year, Form Type, Challan Serial Number, and PAN of the deductor and the deductee.
  5. After filling in the details, click on the “Proceed” button.
  6. You will now be taken to the correction request form, where you can make the necessary changes.
  7. Make the required corrections and validate the details entered.
  8. After validation, click on the “Submit” button to send the correction request.

You will receive a confirmation message stating that your correction request has been submitted successfully.

Buyer of property can only submit request and file correction.

4

Hi @Muskan_Balar
Thank you for your reply. I followed the same steps. Please refer to the attachment to view the failed requests.

Capture
Capture1268×186 16.9 KB

5

Hi @Kajal7993

Your query seems to be user specific. We would not be able to give a solution from this table.

Here, you can book a MEET where a dedicated tax expert can connect with you over a video call, understand your queries, and help you with a correction request of Form 26QB.

6

I just generated 26qb correction request but how will the seller approve the correction request ?

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Hi @Shubhamsharma,

For seller approval of PAN under correction request of 26QB, the seller will have to login to Income Tax Portal > Pending Actions tab. Select Worklist and the request will appear in For Your Action tab, and the seller can approve the request here.

Hope this helps.

8

Hi,
I’ve submitted a 26qb correction in Traces on 12th May and it’s status shows Pending for Approval with seller. But it’s 18th today and the seller still hasn’t gotten any request. Does it take some time before it shows up on his pending action list? Thanks

9

@CA_Niyati_Mistry hi! your replies have been really informative. Could you help with how I maybe able to download the challan cum statement for the rectified 26qb form with the changes once the status on TRACES has changed to “processed”?

Thank you in advance!

10

Hello @aarshna_shah,

You can login to TRACES using user id, PAN and password, then go to Statements/Forms tab and request for downloading 26QB after filing in the required details like Acknowledgement number, PAN of seller, etc. Once the file status is changed from Requested to Available under Downloads tab you can download the same.

Hope this helps!

11

@CA_Niyati_Mistry Thank you sooo much for your prompt reply but i am not able to find the option to request for 26QB, i am only able to do so for 16B, attaching screenshot for reference. Please if you can guide more? Thanks a tonne!!

traces
traces1118×784 115 KB

12

Hello @aarshna_shah,

You can get the original Form 26QB from the Income tax portal. In case of correction through online mode on TRACES there is no option to download the same.

Hope this helps!

13

Okay, yes this does help, thanks again for your time and help.

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@CA_Niyati_Mistry I field for correction and got the approval from the seller. Now its pending approval from AO. Is there any pending action I need to take to AO approval? Approx how much time does it take for AO approval and whats the further process?

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Hey @Mayank_Bajaj,

No, there is no further action required from your end for AO approval. It would take approximately around 15-30 days for AO’s approval.

Hope this helps!

16

@CA_Niyati_Mistry Thank you. It now shows as “Submitted to ITD”. How many approvals are there before it gets finally approved?

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Hi @Mayank_Bajaj,

There is no further approvals now, once it is Submitted to ITD.

Hope this clarifies!

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We have recently purchased property in the month of March 2023, deducted TDS as the value exceeded amount Rs.50 lacs, filled form 26bq and even made the transaction online towards deposit of tax, today after 3 Months I have come to know that my online tax deposit transaction got failed subsequently. Please guide what to do now.

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@CA_Niyati_Mistry if you can help here.

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Hello @rahul_sharma,

You need to check whether the Form is filed or not from Income tax portal. If it is filed, then you need to check the default amount on Traces portal, pay the same and resolve the demand.

If form is not filed, then you will have to file again and make the payment for TDS again.

For further help you can book a Meet

Hope this helps!

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