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Last updated on: July 29, 2025

Quick Summary

Form 26QB is an online challan-cum-statement form required to be filled and submitted by buyers of immovable property (other than agricultural land) in India when the transaction value exceeds Rs. 50 lakh. Under Section 194-IA of the Income Tax Act, buyers must deduct 1% TDS from the sale consideration and remit it to the government using Form 26QB within 30 days from the end of the month in which the property was transferred. This form captures both the payment of TDS and details of the buyer and seller, eliminating the need for a separate TDS return filing. Once filed, the buyer should provide the seller with Form 16B as proof of TDS deduction. Filing Form 26QB correctly is crucial to avoid penalties and ensure compliance during property transactions.

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Form 26QB: A Detailed Guide for Indian Property Buyers and Sellers in 2025

What is Form 26QB and why is it important for property transactions in India?

Buying and selling property in India involves several legal and tax obligations on both parties. One such crucial compliance is Form 26QB, directly related to the deduction and payment of TDS (Tax Deducted at Source) on the sale of immovable property, as per Income Tax rules. If you’re planning to purchase a property worth more than Rs. 50 lakh, understanding Form 26QB, the TDS provisions for property transactions in 2025, and how to comply is essential.

Form 26QB is an online statement-cum-challan that a property buyer must file when deducting TDS on payments made to the seller. This process has been made mandatory to curb tax evasion in real estate, and non-compliance can lead to penal consequences for both parties.

How does Form 26QB work in the context of TDS on property sales?

Form 26QB comes into play under Section 194IA of the Income Tax Act, 1961. If you buy any immovable property (land, house, flat, etc.) in India for Rs. 50 lakh or more, the buyer is required to deduct 1 percent TDS on the sale value (with current rates applicable for financial year 2025 26), and deposit that TDS with the government.

The buyer must complete and submit Form 26QB electronically within 30 days from the end of the month in which the property transaction took place. This ensures that the seller gets tax credit and that the government tracks all high value property deals.

What is the procedure to fill Form 26QB online in 2025?

Filing Form 26QB is straightforward provided you have all necessary documents at hand. Here is a step by step process to submit Form 26QB online in 2025:

  • Visit the official TIN NSDL portal or the updated Income Tax e-Payment portal linked via e-filing.
  • Select Form 26QB (TDS on Sale of Property) under TDS on property option.
  • Enter details such as PAN of buyer and seller, complete property details, sale value, date of agreement, TDS amount, and payment mode.
  • Make the TDS payment online via net banking. You will receive an acknowledgment receipt and a challan number.
  • Download and save the receipt for future reference. You will need the same for Form 16B (TDS certificate for seller).

Most leading banks and payment gateways now support direct e-payment integration, making compliance much easier compared to previous years.

First-hand Experience: Navigating Form 26QB in 2025

Having gone through a property purchase last year, I can say completing Form 26QB online is less time-consuming than manually visiting banks or government offices. The portal interface is more user friendly, and you get online support for any issues faced. Upon submission, the seller received timely alerts and was able to see TDS credit on their Form 26AS promptly.

Did you know?
As per new 2025 portal updates, Form 26QB submission and TDS payment can now be initiated directly from some online property marketplace platforms. This enables buyers and sellers to easily compare real estate offers and sort compliance paperwork in one click.

People Also Ask

Q: Who is responsible for deducting and depositing TDS on property transactions?
A: The buyer (transferee) is liable for deducting and depositing the TDS using Form 26QB.

What are the Key Features or Highlights of Form 26QB for buyers and sellers?

  • Mandatory for high value property: Compulsory when transaction value is Rs. 50 lakhs or more.
  • Applicable to all residential and commercial property: Both under construction and ready to move properties.
  • Individual transaction based: Separate Form 26QB required for each buyer seller combination and for each property unit.
  • PAN is compulsory: Both buyer and seller must provide valid PAN. Mismatch or incorrect entry can lead to rejection.
  • Time bound: Must be filed within 30 days of transaction month end.
  • Digital record: Once filed, challan details become part of the seller’s Form 26AS for TDS credit.

What are the Pros and Cons of using Form 26QB for property TDS compliance?

Pros

  • Prevents tax evasion by tracking high value real estate transactions.
  • Simple online process compared to traditional paperwork.
  • Transparent record keeping for both parties for future reference.
  • Timely acknowledgment means seller does not miss TDS credit in returns.
  • Links to Form 26AS, speeding up refund or adjustment process for sellers.

Cons

  • Penalties for non-filing or late filing can be significant for buyers.
  • Incorrect PAN entries may result in no TDS credit to seller.
  • Awareness gaps persist, with new buyers sometimes missing requirements.
  • Joint ownership means multiple forms and calculations for each owner.

Did you know?
In cases of joint ownership or multiple buyers sellers, each combination must file a separate Form 26QB. This can lead to additional steps but makes the process easier to audit and track.

People Also Ask

Q: What if Form 26QB is not filed within the stipulated time?
A: Delay in filing can attract a late fee under Section 234E (Rs. 200 per day), interest on late payment, and penalty under Section 271H.

How to Download Form 16B for Seller after Form 26QB payment?

Once TDS is paid and Form 26QB is filed, the buyer must provide the seller with a TDS certificate. This is done using Form 16B:

  • Log into the TRACES portal as a taxpayer.
  • Navigate to ‘Downloads’ section and select Form 16B.
  • Enter relevant details such as acknowledgment number and PANs of buyer and seller.
  • Download digitally signed Form 16B, and hand over a hard or soft copy to the seller.

Online platforms, especially those offering end to end services, can help both sides complete this step quickly.

Expert Insight
The growing use of online marketplaces not only streamlines property searches, but also now integrates compliance forms like 26QB and 16B, reducing manual errors and paperwork for users.

People Also Ask

Q: Can TDS be paid in installments while using Form 26QB?
A: TDS must be paid on the amount credited or paid, whichever is earlier. Hence, for installment-based payments, Form 26QB is to be filed for each installment.

What are the Main Differences Between Form 26QB and Other TDS Forms?

Buyers often get confused between different property-related compliance forms. Here’s a handy comparison:

ParticularsForm 26QBForm 26QCForm 16B
Applicable forSale of property above 50LRent above 50,000 pmTDS certificate to seller
Who files?BuyerTenantBuyer (after 26QB)
TDS Rate FY 2025-261 percent5 percentN A
Filer typeIndividual/HUF/any buyerIndividual tenantBuyer
Submission TimelineWithin 30 daysWithin 30 daysAfter 26QB

This table highlights the need for Form 26QB whenever you buy property, while other forms serve rent or subsequent certificate needs.

First-hand Experience: What mistakes do people make during Form 26QB filing?

From personal observation, the most common errors are:

  • Entering incorrect PAN for buyer or seller
  • Using the same form for multiple buyers or property units
  • Missing the deadline and attracting late fees
  • Failing to generate and give Form 16B to seller, causing issues in claiming TDS.

Using professional help or online end-to-end platforms significantly reduces such accidental errors, especially for first-time buyers.

What documents and details are needed for Form 26QB in 2025?

Having the correct documents upfront ensures smooth filing. Here is the typical checklist:

  • Copy of Property Sale Agreement
  • PAN card of Buyer and Seller (must match property documents)
  • Bank details for online payment
  • Full property address with Pin code
  • Sale consideration amount and date of payment
  • Mobile number and email

Online marketplaces now allow document upload and verification, helping further with accurate entry.

Did you know?
As per new notifications in 2025, validating PAN with Aadhaar is required for both parties for successful Form 26QB filing, reducing the odds of errors or identity fraud.

Commonly Asked Queries on Form 26QB for NRIs and Multiple Owners

Is Form 26QB applicable to NRIs buying or selling property in India?

For Non Resident Indian (NRI) sellers, TDS is higher (20 percent or more, not just 1 percent), but the form used for payment is still Form 26QB for resident buyers. However, compliance and documentation requirements are stricter, and it is advisable to seek professional help or use an integrated online service.

Do multiple buyers or sellers require multiple Form 26QB filings?

Yes, for each buyer seller combination, separate Form 26QB must be filed. For example, for two buyers and two sellers, four forms must be completed – one for each pairing.

Can Form 26QB be corrected after submission?

Correction is possible, but only for certain fields—mainly address, email, and contact number—via the TDSCPC portal. PAN, amount, and major transaction details cannot usually be changed, so accuracy at the time of filing is crucial.

Quick Recap: TL;DR

  • Form 26QB is mandatory when buying any property worth Rs. 50 lakh or above in India.
  • Buyer deducts 1 percent TDS and deposits with government using Form 26QB within 30 days of transaction.
  • Both buyer and seller require valid PAN and Aadhaar validation.
  • Use online platforms or TIN NSDL portal for fast and accurate filing.
  • Always provide sellers Form 16B for TDS credit.
  • For joint ownership or multiple buyers sellers, file separate Forms for each combination.
  • Mistakes and late filing can lead to hefty penalties.

People also ask: FAQ

Q: What is Form 26QB in real estate?
Form 26QB is an official online form for depositing TDS withheld by the buyer on property transactions over Rs. 50 lakhs.

Q: Can online property platforms help with 26QB filing in 2025?
Yes, most leading property portals provide integrated solutions to file and pay Form 26QB online, often bundled with end to end transaction support.

Q: What happens if wrong PAN is entered in Form 26QB?
If incorrect PAN is entered, the seller does not get credit for TDS, making it difficult for the seller to claim the deduction. Correction is restricted, so verify PAN before submission.

Q: Is Form 26QB needed for inherited or gifted properties?
No, TDS under Section 194IA and thus Form 26QB is not required for inheritance, gifts, or partition of property. It is applicable only for “sale” transactions for consideration.

Q: Do I need to register on TRACES for getting Form 16B?
Yes, buyers must register on the TRACES website to download Form 16B after filing Form 26QB.

Q: Which payments should be included for property value calculation?
Stamp duty, registration fees, and other charges are usually excluded. The sale value as in the agreement is considered.

Q: How do online marketplaces simplify Form 26QB compliance?
By integrating PAN validation, document upload, and direct online payment, online property platforms eliminate paperwork and reduce chances of errors.

For more detailed guidelines, always refer to the official Income Tax Department of India website or consult a tax expert.

Source:

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Written by Prem Anand, a content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors.

Who is the Author?

Prem Anand is a seasoned content writer with over 10+ years of experience in the Banking, Financial Services, and Insurance sectors. He has a strong command of industry-specific language and compliance regulations. He specializes in writing insightful blog posts, detailed articles, and content that educates and engages the Indian audience.

How is the Content Written?

The content is prepared by thoroughly researching multiple trustworthy sources such as official websites, financial portals, customer reviews, policy documents and IRDAI guidelines. The goal is to bring accurate and reader-friendly insights.

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This content is created to help readers make informed decisions. It aims to simplify complex insurance and finance topics so that you can understand your options clearly and take the right steps with confidence. Every article is written keeping transparency, clarity, and trust in mind.

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