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.