To streamline tax collection, the Income Tax Department uses tax deducted at source or TDS. As its name suggests, these taxes are deducted at the source and help the I-T department eliminate tax evasion.
As per, TDS was also introduced on the sale of immovable property worth more than ₹50 Lakhs. To avoid non-compliance, you need to pay the TDS applicable on the sale of the property by filing Form 26QB within a specific time frame.
Read on to know more about TDS on the sale of property, Form 26QB, and how to file it.
What is TDS on the Sale of Property?
As mentioned above, the sale of any immovable property ( ) with a value of over ₹50 Lakhs attracts TDS. As per the rules, individuals and Hindu Undivided Families (HUFs) are required to deduct a withholding tax before paying the seller the real estate sale amount.
What is Form 26QB?
A Form 26QB is a return-cum-challan used for payment of TDS to the government. You can access this form from the TIN NSDL website. Note that Form 26QB must be filed within of tax deduction. This form contains the details of the following:
- The sold property
- Tax obligations
How to Form 26QB
To file Form 26QB online, you need to follow these simple steps:
- Navigate the official website of the Income Tax Department (TIN NSDL)
- Log in to your account using your credentials
- Choose the ‘e-payment: Pay tax online’ option available under the ‘Services’ category
- Find ‘Form 26QB’ and click on ‘Continue’ to proceed with the filing process
- Fill out the relevant sections of the form with the appropriate information
- Select the method of payment and proceed to pay in order to complete the filing of your Form 26QB
How to Form 26QB
Here are the steps that you need to follow to download this form:
- Navigate to the official website of TIN NSDL
- Under the section ‘Services’, find the ‘TDS on sale of property’ category
- Fill out the form with the relevant information and submit it to take the process further
- Once the form is submitted and you receive an acknowledgement number
- You can download the form by clicking on the ‘Print Form 26QB’ option
How to of TDS Deductions Under Form 26QB Online
Through Form 26AS, you can check the status of your TDS deductions online. To check the status, visit the official website of the Income Tax Department (TIN NSDL) and log in to your account.
Navigate to the ‘View Form 26AS’ and select the assessment year to download the form in PDF format and check the deduction status.
Filing Form 26QB is mandatory, and failing to do so attracts a penalty, which is of the outstanding balance. Hence, make sure to pay your TDS on time to avoid hefty penalties or any sort of legal action for non-compliance with the Income Tax Act.