Introduction:
Buying a property of their own is a dream of almost every independent individual. But, this comes with various legal compliances on part of every buyer. This often creates confusion in the minds of people regarding how to fulfil these mandatory compliances.
One such compliance to be made while purchasing a property is related to Deduction of Tax at source. TDS deduction at the time of purchase of property is to be done by the buyer himself. He has to make the necessary payment towards TDS after deducting the amount from payment to be made to the seller. This reporting of TDS is to be done by filling Form 26QB on the Income Tax portal. Let us understand this procedure in detail.
What is Form 26QB?
Form 26QB is a challan in the form of statement used for payment of TDS on sale of property. As per section 194IA of Income Tax Act, 1961, when an immovable property is sold, the buyer is required to deduct TDS at 1% from the total sale consideration to be paid to seller and deposit such deducted TDS amount with government within prescribed time. Note that no TDS is required to be deducted when consideration is upto Rs.50 Lakhs.
What is the due date for filing of form 26QB?
The Due date of filing Form 26QB is within 30 days from the end of month in which the tax deduction is made.
What is Form 16B?
Form 16B is the TDS certificate for the payment made. Form 16 B is downloaded from traces website after entering the details of transaction as submitted in the statement of 26QB Form. The entire procedure is completed once Form 16B is generated from traces.
How to enter details in form 26QB when there are multiple buyers or multiple sellers?
There is a lot confusion among most of the professionals as well as the taxpayers regarding how to enter details of multiple buyers or sellers. However, Income Tax Department has specifically guided regarding this where for every buyer or every seller a different form has to be filed in respect of their share. This means for every combination one Form 26QB has to be filed.
For e.g. One buyer one seller – Single 26QB Form
One buyer two sellers – Total 2 26QB Forms
Two co-buyers and two co-sellers- Total 4 26QB Forms
Likewise for every combination number of forms to be filed increases.
Procedure to file Form 26QB
Earlier form 26QB filing used to be done through TIN-NSDL website but, recently this option is enabled through regular logging in e-portal of Income tax department. https://www.incometax.gov.in/iec/foportal/
A person making such payment needs to have his account registered on e-filling portal.
After logging in the account one has to create a challan for payment of TDS.
Following steps are given for better and seamless procedure to be carried on:
Step 1: Go to e-file option and select e-pay tax. Generate new challan by clicking on option New Payment