Form 26QB Meaning

Form 26QB is a form used by buyers to file their TDS return on the sale of a property. The form is issued by the Income Tax Department and comes under the ambit of Section 194IA of the Indian Income Tax Act, 1961.

The Income Tax Act, 1961, mentions a few important provisions in connection to the purchase and sale of immovable property. Section 194-IA deals with such transactions.

Whereas the buyer or the purchaser of the property, commonly called the deductor is required to deduct TDS against the payment that is payable to the seller of the property. However, if the value of the transaction exceeds Rs. 50 lakhs, issuing Form 16B to the deductee who is the seller is mandatory to the deductee. The requirement of Form 26QB is only provided in Section 194-IA.

Come, let''s learn more about Form 26 QB.

According to section 194IA of the Income Tax Act, when individuals or Hindu Undivided Families (HUFs) purchase an immovable property above Rs. 50 lakhs, they should always do TDS, that is, Tax Deducted at Source. So, how does one file this tax? Form 26QB does the job now.

The property in question consists of all types of immovable property, including residential and commercial properties and undeveloped land, except for agricultural land. TDS has to be deducted only on the sale transaction proceeds in cases where the value of sale proceeds equals or exceeds Rs.50,00,000 (Fifty Lakhs).

Form 26QB Related Filing Requirements

To avoid any inconvenience, it has to be filed correctly to the point in relation to Form 26QB.

• The paper works must include all details of the buyer, seller, and their PAN numbers.
• Do not forget to attach Payment Challan 280 along with Form 16A.
• The form must be submitted within 30 days from the date of purchase.
• Make sure that the reference number of the Form 26QB TDS return issued to you is retained.
• In case the sum is less than Rs.50 Lakh, the buyer has a tax deduction exemption.
• 26QB is required only for immovable property transfer or sale.
• The sale of agricultural property is exempt from filing form 26QB.
• A property will not be considered agricultural if it is subject to the cantonment area and the population density is more than 10,000 persons per square kilometre.

Form 26QB will help ensure that the purchasers pay the correct amount of tax relating to property purchases on time. This form needs to be submitted correctly because, in case of an error, it might create problems of taxation for the assessee.

How to Fill Form 26QB Online? Follow the simple steps:

Visit the website of NSDL and register an account by using your PAN number, e-mail ID, and password.

Choose form 26QB from the list of all available e-forms.

Fill in all the details from PAN numbers of the seller and buyer up to the details from form 16A/challan 280.

Use form 26QB to determine the quantum of TDS to be deposited to the credit of the deductible source.

Prepare and keep on record form 26QB.

Upload form 26QB and Details of form 16A and challan 280 to the web site of NSDL

It will issue an acknowledgement-cum evidence of form 26QB.

The purchaser can use the reference number in future for the use of forms 26QB once they are generated and also for further communication with the Income Tax Department.

The purchaser would be required to retain form 26QB detail, form 16A/challan 280 detail and reference number of form 26QB TDS return. All these details will help the buyer when the Income Tax Department issues any inquiry or discrepancy in relation to Form 26QB. Also, the buyers can ensure no wrong tax is deposited, hence avoiding any legal hassle that may be due to late form 26QB payment on purchase of property. That is to say, customers must be prepared to download form 26QB online and see to it they fill and download the form as fast as they can.

Form 26QB Download

As explained earlier, the official Income Tax e-Filing website avails options for downloading Form 26QB to customers. There are a number of steps that customers need to follow to be able to obtain form 26QB. These steps include the following:

1. Get access to the official Income Tax e-filing website by signing in.
2. Click on ''Downloads'' from the home page.
3. Click on the form ''26QB''.
4. Download the form 26QB in PDF.
5. Click on the PDF viewer for form 26QB. Fill in the form by entering the information as described above.
6. After calculating the TDS amount payable, submit the form 26QB.
7. Lastly, another form will be issued known as the acknowledgement form. This acts as acknowledgement that was of 26QB form submitted.

There you go! We hope now you know how important it''s going to be to file Form 26QB in the process of acquiring a property.