Last updated on: July 29, 2025
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.
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.
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.
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:
Most leading banks and payment gateways now support direct e-payment integration, making compliance much easier compared to previous years.
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.
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.
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.
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.
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:
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.
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.
Buyers often get confused between different property-related compliance forms. Here’s a handy comparison:
Particulars | Form 26QB | Form 26QC | Form 16B |
---|---|---|---|
Applicable for | Sale of property above 50L | Rent above 50,000 pm | TDS certificate to seller |
Who files? | Buyer | Tenant | Buyer (after 26QB) |
TDS Rate FY 2025-26 | 1 percent | 5 percent | N A |
Filer type | Individual/HUF/any buyer | Individual tenant | Buyer |
Submission Timeline | Within 30 days | Within 30 days | After 26QB |
This table highlights the need for Form 26QB whenever you buy property, while other forms serve rent or subsequent certificate needs.
From personal observation, the most common errors are:
Using professional help or online end-to-end platforms significantly reduces such accidental errors, especially for first-time buyers.
Having the correct documents upfront ensures smooth filing. Here is the typical checklist:
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.
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.
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.
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.
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.
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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.
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.
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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