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Tax Deducted at Source

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TDS on Sale of Property & Form 26QB

Selling property? There’s a tax twist you shouldn’t miss.

When you sell an immovable property (like land or a building) in India for ₹50 lakhs or more, the buyer is required to deduct TDS (Tax Deducted at Source) at 1% of the sale value. This TDS must be deposited with the government using Form 26QB.

What is Form 26QB?

Form 26QB is a challan-cum-statement used to deposit the 1% TDS with the Income Tax Department. It’s mandatory for the buyer to file this form within 30 days of making the payment (or part-payment) to the seller.

Why It Matters

  • Missed Form 26QB = Penalties
  • No TDS = Trouble for the buyer
  • No credit = Trouble for the seller

How We Help

✅ Assist buyers with accurate TDS calculation
✅ File Form 26QB on time
✅ Provide the seller with TDS certificates (Form 16B)
✅ Handle notices or mismatches, if any

Pro Tip

Even if you're making part payments (like in installments), TDS must be deducted proportionally each time!

Frequently Asked Questions (FAQs)

The buyer of the property is responsible for deducting 1% TDS if the sale value is ₹50 lakhs or more.

Form 26QB is an online form used to deposit the deducted TDS with the Income Tax Department. It must be filed within 30 days of the payment to the seller.

Yes. If the payment is made in installments, TDS must be deducted and Form 26QB filed for each installment.

The buyer may face penalties, interest, and notices from the Income Tax Department for non-compliance.

Yes. Once TDS is paid and Form 16B (TDS certificate) is issued by the buyer, the seller can claim this amount while filing their ITR.

No TAN (Tax Deduction Account Number) is required. The buyer can use their PAN while filing Form 26QB.

You’ll need:

  • Buyer and seller PAN details
  • Property address and sale value
  • Payment and bank details
  • Date of transaction

Yes, but the process involves correction requests through the TRACES portal and may take time. Accuracy during filing is important.