Form 26QB TDS on the Sale of Property

Form 26QB TDS on the Sale of Property- an Overview

Form 26QB, which is found on the TIN website, is used to provide details about TDS on property sale. The Income Tax Act's Section 194-IA governs these deductions. The buyer is required to pay taxes when purchasing the property, but there are other taxes that must also be paid. All the requirements for the TDS deduction are done by the buyer and at the time of purchase. These requirements are covered under Section 1941A.

The form 26QB is submitted after the TDS is deducted from the amount collected by selling and immovable property. It has to be submitted within 30 days of time. For instance, form 26QB must be submitted by 30 July if TDS was deducted on 14 June.

Regulations Under Section 194IA

As of 1 June 2013, the buyer should deduct the taxes at the source when selling the property for more than ₹50 lakhs. The TDS held by the buyer is at the rate of 1% of the total sale amount. If the sale amount is less than ₹50 lakhs TDS should not be withheld.

• TDS must be deducted from each instalment if the payment is recovered in instalments
• Consideration for immovable property includes all costs associated with the transfer of the immovable property, such as club dues, parking fees, facility fees for energy or water, maintenance fees, advance fees, and other costs of same type
• According to the Budget in 2019 , this is relevant to the entire property bought on or after 1 September 2019
• The TDS has to be calculated for the full sale price. For instance, if you spent ₹55 lakh on a property, you must pay TDS on ₹55 lakh rather than ₹5 lakh (i.e.₹55 lakh –₹50 lakh). This still holds true if there are multiple buyers or sellers.
• For the objective of paying the TDS on property, the buyer of any possessions is not required to acquire a TAN (Tax Deduction Account Number). Your PAN can be utilised to create the payment
• The buyer must have the seller's PAN in order to pay TDS on real estate; otherwise, TDS is withheld at a rate of 20%. The buyer's PAN is also required
• TDS is deducted out at the time of payment (including instalment payments), or earlier if the seller is given credit
• It should be paid using form 26QB within 30 days of selling an immovable property
• The buyer must provide the seller the TDS certification in form 16B after filing the TDS with the government
• It is available approximately 10 to 15 days after the TDS deposit
• Form 16B must be obtained by the buyer, who then gives it to the seller.

Steps to Obtain Form 16 and Pay TDS Through Challan 26QB

The following steps must be followed in order to get form 16B (for the seller) and pay TDS through Challan 26QB:

• First, make a payment using Challan 26QB (Online and Offline)
• Visit the official website tin.nsdl.com
• Log in. Click 'e-payment-Pay taxes online' under the option labelled 'Services'
• Select ‘TDS on property (Form 26QB)’, tab
• Click the icon to begin again
• A new window will open
• Enter 0020 if you are a corporate taxpayer, and enter 0021 for non corporate payer
• Basic information like the financial year assessment year and the income type should be incorporated. Other information should be filled in the particular field.
• The conclusive option, ‘payment information’ appears once you have finalised all the crucial fields
• Out of the two compensation options at the bottom of the page namely instant e tax payment through net banking, delayed e-tax payment, e-payment of taxes choose the appropriate option and click proceed
• You can log into your bank and make payments online if you choose net banking
• You can download Challan 280 post payment
• If you are not able to pay online, an online permit for form 26QB is developed for you with a special acknowledgement number
• This is effective for ten days following generation
• You can get this and your check to one of the banks
• The bank will carry out the online transaction and produce your challan

TRACES registration: open your account using the PAN card number and register yourself

• Post registration fill the form 16B and submit it to the seller
• Submit Form 26AS within seven days of expenditure details of tax deducted at quotation on sale of immovable property under section 194(1A)
• The data in part F contains the TDS certificate number. This encompasses the information of the deductions. The total number of transactions, transaction amount, and the date along with acknowledgement number will be available
• Login on TRACES post procuring your payment. Get the Form 16 from the inventory under the download tab
• Enter all the required information along with acknowledgement number for the sale and click on the proceed icon to complete the process
• Once you have reviewed all the data , click 'submit a request’
• Your request will be addressed in a few hours

Notice for Non-Filing Form 26QB

The registrar/sub-registrar office routinely sends an Annual Information Return (AIR) to the income tax division detailing the acquisition and disposition of property. The department can discern if you have made a property marketing worth more than ₹50 lakh from this announcement.

The IT division will inform the buyer if the buyer has not filed TDS within the allotted time or has not removed tax at source at 1% (or 0.75%) of the commerce amount.

Sample Notice received by the taxpayer

Sub: CPC (TDS)
Follow up: 26QB form not yet filed for Property purchase during FY 2013-14
Date of communication: 05/04/2016
Dear Buyer of Immovable Property,
PAN(XXXXX1234X),

You carried out a transaction for the purchase of real estate worth more than ₹50 Lakhs (Rupees Fifty Lakhs) during the Financial Year 2013–14, according to the information provided in the Annual Information Return (AIR) through the Registrar/Sub-registrar.

You haven't yet submitted a Form 26QB TDS Statement, though. Take a talk about the TDS statement in form 26 qb and issue once of TDS certificate in form 16b.

Mandatory Filing of Form 26QB

According to the Finance Act of 2013, TDS is imposed on the transfer of real estate when the purchase price is greater than or equivalent to ₹50 lakhs. According to Section 194 IA of the ITR Filing Act of 1961 and Rules 30, 31, and 31A of the Income Tax Rules:

• The buyer of the property must subtract the tax @ 1% from all such transactions starting on 1 June 2013, when paying the sale consideration
• The government budget shall obtain the tax that has been withheld either through the e-tax payment option (Netbanking) or one of the authorised bank areas
• Money withheld in accordance with Section 194-IA has to be given to the credit of the central government within the time period of 7 days of the month end where the deduction is made
• PANs for both the dealer and the buyer must be furnished in an online form (Form 26QB) in declaration to furnish data about the real estate marketing
• On the website http://www.tin-nsdl.com/ there is a facility for providing information regarding the transaction of the sale of real estate and paying TDS therein
• The property buyer must provide the seller with a TDS certificate in Form 16B detailing the taxes they have deducted and deposited into the government account
• By creating an account on the Centralised Processing Cell (TDS) website, www.tdscpc.gov.in, users will be able to obtain Form 16B
• TDS Certificates in Form 16B can be collected from TRACES
• All buyers are required to generate and download TDS certificates from TRACES before issuing them
• TDS Reconciliation Analysis and Correction Enabling System, functional at tdscpc.gov.in
• Only TDS Certificates that have been downloaded from the TRACES portal will remain valid.

In Case of Non/ Late Filing of Form 26QB, the Seller Will Not Be Able to Claim the TDS Credit.

The administration account should receive the tax that has been subtracted by using either the e-tax compensation option (Netbanking) or one of the authorised bank departments. Any money so withheld from in congruence with Section 194-IA must be submitted to the credit of the central administration within seven days of the end of the month in which the assumption is made.

Penalties for failing to file Form 26QB

Due Date Of TDS Payment And Form 26QB

The purchaser of real estate, who is the deductor, must present form 26QB, a Challan cum ruling statement, within 30 days of the stop of the month in which the payment is made. For such a deduction, no separate TDS return has to be submitted.

How To Pay TDS And File Form 26QB

A challan cum proclamation statement is Form 26QB. It is therefore impossible to pay TDS without submitting this form, and similarly, it is impossible to submit the form without paying TDS.

• Access https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
• If you have obtained a market notification from the Income Tax Department, select the Demand Payment choice for TDS on Property after assigning Form 26QB
• Enter all the required information in the corresponding sections, if you have any doubts get in touch with our experts right away.

Key Features of Form 26QB under Section 194-IA

Form 26QB is an online statement cum challan for furnishing information and paying TDS on the sale of immovable property under Section 194-IA of the Income Tax Act, 1961. The key features of Form 26QB are as follows:

• It is to be filed by the buyer of the immovable property.
• The TDS is to be deducted at the rate of 1% of the sale consideration.
• The TDS is to be deposited within 30 days of the end of the month in which the sale consideration is paid or credited to the seller.
• The form can be filed online through the website of the National Securities Depository Limited (NSDL).
• A TDS certificate in Form 16B is to be issued by the buyer to the seller, in respect of the taxes deducted and deposited into the Government Account.

How to Download Form 26QB?

Form 26QB can be downloaded from the website of the NSDL. The following steps are involved in downloading the form:

• Go to the NSDL website
• Click on the Forms tab.
• Under TDS Forms, click on Form 26QB.
• The form will be downloaded in PDF format

Implications of Non/Late filing of TDS Statements

The implications of non/late filing of TDS statements are as follows:

• The buyer may be liable to pay a penalty of up to ₹500 for each day of delay, up to a maximum of ₹10,000.
• The buyer may also be denied the benefits of certain deductions and exemptions under the Income Tax Act.
• The seller may be required to pay interest on the TDS amount that has not been deposited by the buyer.

Why Vakilsearch?

TDS will be deducted, and the buyer can take a refund or offset it against his tax liability when filing a tax return. This information will appear on the buyer's form-26AS. In order to stop the circulation of black money, the government has made it the responsibility of the buyer to deduct money from high value transactions. You can get in touch with Vakilsearch to complete the whole TDS process without any hassles. Our team of experts can file the form 26qb on your behalf.