Form 26QB is a TDS payment form that a buyer (any person) must file when purchasing immovable property in India. If you buy a property from a resident seller and the value of the property is ₹50 lakh or more, you must deduct 1% TDS and pay it to the government. The TDS should be calculated on the higher of the sale consideration or the stamp duty value of the property. The buyer must file Form 26QB and deposit the TDS within 30 days from the end of the month in which tax was deducted.
For all immovable house properties, commercial property, and unconstructed properties except agricultural land. TDS needs to be deducted only on the transactions where the sale proceeds are Rs. 50,00,000 (Fifty Lakhs) or more.
Form 26QB requires all the details, including the details of buyers, sellers, tax deposits, etc. There is no need for the buyer to possess a TAN. This form can be filed directly through the Income Tax Portal.
TDS should be deducted on the entire value of the property if it exceeds Rs.50 lakhs. For example, if the value of the property is 1 crore, i.e., greater than 50 lakhs, then TDS shall be deducted at 1 crore and not on the balance Rs. 50 lakhs.
When and How Much TDS Shall be Deducted on the Sale of the Property?
TDS is to be deducted from the stamp duty value of the property if it is more than the sale value. Also, if the value of the property exceeds ₹50 lakhs, the TDS is deducted on the entire amount and not just on the amount over and above ₹50 lakhs. For example, if Mr. B purchased a property from Mr. S for a sum of ₹60 Lacs, but the stamp duty value of such property is ₹65 Lacs. In this example, the TDS will be calculated on ₹65 lakhs and not on ₹15 lakhs (65,00,000 - 50,00,000). Under the new amendment, a TDS of 1% will be calculated and deducted on a total of ₹65 Lacs, i.e., 65,000/-, and Mr. B will be paid ₹59.35 Lacs.
If you find calculating the TDS amount complicated, you can use our TDS calculator, which can help you calculate your TDS liability accurately in seconds.
The essential documents or information required while filling Form 26QB -
- The personal details of buyers and sellers.
- Their PAN number of the buyer and seller
- Specifications of the property
- Date of the agreement for sale
- Total amount of sale and the amount paid
- Details of the tax deposited like the date of deposit
When buying or selling immovable property such as land or buildings, the following rules must be followed:
TDS Deduction:
- Buyers must deduct TDS at 1% of the sale value of the immovable property at the time of the transaction. This means that 26QB TDS rate is 1% of the sale value of the property.
- No TDS deduction is required if the property's sale price is below ₹50 lakh.
No TAN Required:
- Buyers are not required to obtain a Tax Deduction Account Number (TAN) to deduct and deposit TDS.
- However, the PAN details of both the buyer and the seller must be provided during the TDS deduction process.
Multiple Buyers and Sellers:
- If there are multiple buyers or sellers involved, separate Form 26QB must be filed for each buyer-seller combination.
Installment Payments:
- For transactions involving payment in installments, TDS must be deducted on a pro-rata basis with each installment.
TDS Certificate:
- After deducting and depositing TDS, the buyer must issue Form 16B (TDS certificate) to the seller within 15 days of making the TDS payment.
- If there are multiple buyers, each buyer must deduct and pay TDS equally at the same rate.
Agricultural Land Exemption:
- TDS is not applicable on the purchase of agricultural land, except in specific cases where the land does not qualify as agricultural due to its location.
Non-Agricultural Land Criteria:
A land is not considered agricultural if it meets the following conditions:
- It is located within a population of over 10,000 and falls under the jurisdiction of a Cantonment Board or Municipality.
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It is situated within the specified distances from municipal limits, depending on the population:
- Up to 2 km for a population of 10,000 to 1,00,000.
- Up to 6 km for a population of 1,00,000 to 10,00,000.
- Up to 8 km for a population exceeding 10,00,000.
Step 1: Visit the official Income Tax e-Filing portal and sign in using your credentials.
Step 2: After logging in, go to the ‘e-File’ menu and select ‘e-Pay Tax’. Under the ‘New Payment’ section, locate ‘26QB (TDS on Sale of Property)’ and click ‘Proceed’.
Step 3: Complete the required details across the relevant sections, including:
- Buyer's information
- Seller's information
- Property details
- Tax payment details
- Amount paid or credited
- Address information
- Contact and communication details
Step 4: Review the information and choose a payment option. You can either make the payment immediately by selecting ‘Pay Now’ or opt for ‘Pay Later’ based on your preference.
Step 5: If you choose ‘Pay Now’, complete the payment of the applicable TDS amount. Once the transaction is successful, an acknowledgement for Form 26QB will be generated, which you can download for your records.
Step 6: After Form 26QB is successfully processed, log in to the TRACES portal as a taxpayer to generate and download the corresponding TDS certificate.
Banks Authorized for TDS Payment
Given below are the banks that are authorized for TDS payment
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
- Indian Bank
- Indian Overseas Bank
- Jammu and Kashmir Bank
- Punjab and Sind Bank
- Punjab National Bank
- State Bank of India
- United Bank of India
- Union Bank of India
- UCO Bank
Section 194-IA applies only when the seller is a resident of India.
- If you are buying immovable property from a resident seller and the property value is ₹50 lakh or more, you must deduct 1% TDS.
- The TDS is calculated on the higher of the sale consideration or the stamp duty value.
- This TDS is paid using Form 26QB.
If the seller is an NRI:
- Section 194-IA does not apply.
- TDS is deducted under Section 195, not 194-IA.
- The TDS rate is higher and depends on the type of capital gains.
- Form 26QB cannot be used when the seller is an NRI. A different TDS process and forms apply.
To learn how to download Form 26QB, follow these steps:
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Step 1: Go to the official Income Tax Website and log in. Then select 'e-file' followed by 'e-pay taxes.'
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Step 2: Choose 'Payment history.' If Form 26QB has already been filed, you will find an entry under the type of payment labeled 'TDS on Sale of Property (800)'. Under 'Action,' you will see the option to download the receipt or statement of Form 26QB.
Here's a sample of Form 26QB statement for your reference.
Where can the TDS Deducted on the Property be Seen by the Seller?
TDS deducted will be reflected in Form 26AS Part F, as shown in the image:
| SL No. |
Reason for Penalty |
Penalty Charges |
| 1 |
Delay in Filing TDS |
₹200 per day of delay, as per Section 234E. |
| 2 |
Failure to Remit TDS After Deduction |
1.5% interest per month on the unpaid TDS amount until remitted to the government. |
| 3 |
Non-Deduction of TDS |
1% interest per month on the TDS amount not deducted. |
| 4 |
Non-Submission of the Required Statement Within Stipulated Time |
A penalty between ₹10,000 and ₹1 lakh under Section 271H. However, no penalty applies if TDS, fees, interest, and the required statement are submitted within a specified time. |
Things to Remember by Seller of the Property
If you're selling a property, ensure the following:
- Provide Your PAN: Share your PAN with the purchaser to enable proper reporting of TDS (Tax Deducted at Source) to the Income Tax Department.
- Verify TDS in Form 26AS: Confirm that the taxes deducted by the purchaser are accurately reflected in your Form 26AS.
Things to Remember by Purchaser of the Property
If you're purchasing a property, keep the following points in mind:
- Deduct TDS at 1%: Deduct 1% tax from the total sale consideration before making the payment.
- Collect and Verify Seller’s PAN: Ensure the seller's PAN is valid and accurate before proceeding.
- Submit PAN Details Online: Provide both the purchaser's and seller's PAN correctly in the online TDS filing form.
- Avoid PAN Errors: Double-check PAN details to prevent mistakes. For any corrections, promptly contact the Income Tax Department.
Form 26QB should be filed within 30 days from the end of the month in which the tax deduction is made. The buyer must provide Form 26QB within the specified due date. The example below explains how the Form 26QB due date is computed. A paid B Rs. 50,00,000 as total sales consideration for the property. If the money was transferred on 20th September 2026, then A is required to submit form 26QB by 30th September 2026.
If you are the seller who has deducted TDS, you need to file a TDS return. The deductors should file a TDS return on time to avoid penalties.
New Income Tax Forms (Effective April 2026)
