Form 26QB | Meaning and Definition

What is Form 26qb?

TDS is levied on the sale of immobile property when the sales valuation exceeds Rs 50 lacs, according to Section 194-IA of the Income Tax Act 1961. The challan cum declaration of the tax deduction is Form 26QB.

Within 30 days after the completion of the month in which TDS is deducted, TDS must be submitted along with a completed Form. Within 15 days of the due date of the challan cum statement in Form 26QB, the person deducting TDS must provide Form 16B to the payee.

It is a payout cum challan format used to submit the government Tax Deducted at Source (TDS) for deduction issued under Section 194-IA of the Income Tax Act of 1961. This provision of the Act concerns exclusively with sales of intangible assets, as well as the relevant TDS, together with Form , must be delivered within 30 days after the end of the month in which TDS was taken. For example, if the transactions happened on March 14th, the form should be completed by April 30th.

Requirements to fill Form 26qb

There are various requirements in order to fill the Form 26qb:
  • Pan card number of both buyer and the seller involved
  • Address details of respective buyer and seller
  • Contact details of buyer and seller
  • Details of the respective property
  •  Amount paid/credited 
  • Details of the tax deposited 

Key Features of Form 26qb

Here are some features of Form 26 qb:

  • It is not applicable to transactions involving agricultural land
  • If an individual pays the total payment in installments, TDS is deducted proportionally on each installment
  •  On any transaction occured 1% upfront TDS is deducted
  • It is not mandatory to obtain TAN in order to pay and deduct the TDS amount
  • It is necessary to deposit TDS and Form 26qb within 30 days from end of the month
  • The buyer is required to obtain Form 16B and furnish the seller
Get 20% off
HR & Payroll Software