Form 26QB is a challan for filing Tax Deducted at Source (TDS) return to the government for deductions performed under Section 194-IA of the Income Tax Act, 1961. Deduction made to transactions involving the selling of immovable property; Form 26QB must be submitted within 30 working days from the end of the month in which the deduction was made. For example, if the transaction happened on 21st April, Form 26QB must be compulsorily submitted by 31st May.
The step by step procedure of filing the Form 26QB are as follows:
Step One: Visit www.tin-nsdl.com, the official website for TIN NSDL
Step Two: Under the option of 'TDS on sale of property, select the "Online form for furnishing TDS on property (Form 26QB)". Select on the challan option "TDS on Sale of Property".
Step Three: Fill in the details in the form as required: a. PAN of the vendor & customer b. Contact details of the parties to the sale c. Details of the property concerned d. Amount paid for the transaction and the deposited tax details
Step Four: The duly filled form is submitted by agreeing to the confirmation screen. After confirmation, the option of form 26QB download appears for offline submission, and online submission to the bank appears for the online procedure. Choose a suitable option. An acknowledgment number appears on the screen, which must be saved for future use. Step Five: For the online process, click on "Submit to the bank," which redirects to the payment page to make a 26QB online payment.
Step Six: On successful payment, a form 26QB acknowledgment appears on the screen containing CIN, payment details, and bank name through which e-payment was done. This document is the evidence of payment made.
What are the important points to remember while filing Form 26QB?
For a seller to qualify for Form 26QB, note these points: 1. The PAN should be mentioned in the sale deed regarding TDS to be furnished to the Income Tax Department. 2. The taxes before deduction should be verified in Form 26AS by the purchaser.
For a buyer, the following points are important: 1. From the sale consideration, 1% tax is deducted. 2. The PAN provided by the seller must be verified and noted 3. The purchaser’s and seller’s PAN should be mentioned in the online form. 4. Carefully the PAN should be quoted. To make any changes, the Income Tax Department should be contacted.
What happens if no TDS is deducted at the time of selling the property?
Failure to deduct TDS may bring a penalty interest of 1% on the outstanding TDS amount. The claimant requires to pay the damages as soon as possible to settle down the account. The remittance of the TDS to the government and filing a TDS return within the specified time to waive off other penalties.
There are two ways to pay TDS using Form 26QB. They are: 1. Online using the option of e-tax payment on the official website. 2. Induce using Form 26QB acknowledgment number to the bank with this form for making the payment.