Learn to Download Form 26QB
As per section 194-IA of the Income Tax Act, the buyer of any immovable property has to deduct TDS at 1% of the total sale amount if the value of the transaction exceeds Rs.50 lakh. Then the buyer has to deposit the TDS and submit Form 26QB to the income tax department within 30 days from the end of the month in which the tax was deducted.
It is important for prospective homebuyers to be aware of the income tax provisions. Form 26QB has to be submitted by the buyer to furnish information about the TDS. It is basically a return-cum-challan form used to provide information about the deduction of tax. The Form 26QB download process has been described in the section below.
Procedure to Download Form 26QB
Step 1: Visit the official website of TRACES. You can log in using your user ID, password, and PAN details.
Step 2: Go to the ‘Statement/Form’. Then click on ‘Request for Justification Report Download.’
Step 3: Select Form 26QB. On the new page that opens, fill in the details related to the assessment year, the PAN of the seller, and the acknowledgement number. Then click ‘Proceed.’
Step 4: Fill in the challan details such as the bank branch code, date of depositing tax, challan serial number, and the challan deposit amount. Then click ‘Proceed.’
Step 5: A request to download Form 26QB online has now been generated. Go to the download tab. There you can find the ‘Requested Download section. Enter the request number and click on ‘View Request.’
Step 6: Once the status changes to ‘Available’, the form can be downloaded. The file is protected by a password which is the PAN of the buyer in capital letters.
It is the detailed step-by-step procedure to download Form 26QB.
Documents Required to File Form 26QB.
- PAN of both the buyer & seller of the property
- Property sale deed
- Challan details of TDS deposited
- Address Proof & Identity Proof of both buyer & seller
Please ensure that you have all the documents listed above before you file form 26QB online.
Salient Features of Section 194-IA and Form 26QB
- TDS under section 194-IA is applicable on transactions of all immovable properties that include residential & commercial properties (land & building). But the TDS is not applicable in respect of agricultural lands.
- Property buyers have to deduct TDS at the rate of 1% of the sale value for transactions exceeding Rs.50 lakh. TDS at 1% has to be charged on the entire transaction value. For e.g., if the property value is Rs.75 lakh, TDS has to be charged on Rs.75 lakh (and not on Rs.25 lakh)
- If the said payment is made in instalments, then TDS has to be deducted proportionately from every instalment.
- For form 26QB, the tax has to be deducted by the buyer at the time of actual payment or when credit is given to the seller, whichever is earlier.
- The PAN details of both buyer & seller are required. If PAN is not furnished, the TDS has to be charged at 20% instead of the normal 1% rate.
- For properties purchased after 01/09/2019, the transaction value should include all the costs incurred in relation to the transfer of the said property. It includes maintenance fees, car parking, utility charges, club membership fees, etc.
- The buyer is required to furnish the TDS certificate to the seller. The buyer can access this two weeks after the deposit of TDS, along with the form 26QB. The buyer is also required to get Form 16B and submit it to the seller.
- The buyer is charged a penalty of 1% for failure to deduct TDS. The penalty shall be levied at 1.5% if the buyer fails to remit the TDS amount to the government. Any delay in filing the TDS returns results in a penalty of Rs.200 for every day of delay.
Conclusion
Deduction of TDS and furnishing Form 26QB is mandatory if the property transaction value exceeds Rs.50 lakh. Buyers are usually very excited and tense during the purchase of a property. The legal requirements & other compliance provisions may appear very intimidating to them.
But with the online facility, the Form 26QB download process is straightforward & fast today.
