What is Form 24QB ?
As per Section 194-IA of the Income Tax Act, 1961, TDS (Tax Deducted at Source) is applicable on the sale of immovable property if the transaction value exceeds ₹50 lakhs. For such transactions, Form 26QB is used as a challan-cum statement to report and pay the deducted TDS.
Key Points About Form 26QB:
- TDS Deduction: The buyer must deduct 1% TDS on the transaction value at the time of payment to the seller.
- Due Date: The deducted TDS, along with the completed Form 26QB, must be submitted within 30 days from the end of the month in which the deduction was made.
- Form 16B: The buyer must provide the seller with a TDS certificate (Form 16B) within 15 days after submitting Form 26QB.
Information Required to File Form 26QB:
- Buyer and Seller Details:
- PAN of both buyer and seller.
- Address and contact information of both parties.
- Property Details:
- Address and specifics of the property being sold.
- Transaction Details:
- Total sale consideration.
- Amount paid or credited.
- Tax Payment Information:
- Details of the TDS deposited.
Purpose:
Form 26QB ensures proper reporting and payment of TDS for high-value property transactions, maintaining transparency and compliance with tax laws.
How HR teams use this term
HR teams usually use Form 26QB when they write policies, explain employee communication, review payroll or leave records, or keep employee data clean in an HRMS.