Form 26A relief for delayed Form 26QB — Property purchase from builder in 2022

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Anirban Mukherjee (Querist)
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18 February 2026 Dear Experts,
I purchased an under-construction flat from a RERA-registered builder in Bangalore in March 2022 for ₹1.09 Cr. Payment was made in 18 milestone installments — partly from my own funds (~₹10L) and partly through home loan disbursement (~₹99L directly to builder).
I was not aware of the Form 26QB requirement under Section 194IA at the time and never filed it. TDS of approximately ₹96,652 (1% of consideration excluding GST) was never deducted or deposited.
The builder (now merged into APG Lifestyle Homes Pvt Ltd, CIN: U70109TN2017PTC173976) is ACTIVE Compliant on MCA portal with balance sheet filed up to 31/03/2025 and last AGM on 30/09/2025. The builder charged GST (CGST + SGST) on every milestone payment and is clearly reporting all revenue.
My questions:
Can I file the Form 26QB(s) now with late fees and interest, and then use Form 26A under the proviso to Section 201(1) read with Rule 31ACB to remove assessee-in-default status, given the builder has filed returns and paid tax on the income received?
Does the Form 26A electronic process on TRACES work for Section 194IA (26QB) transactions, or is it only applicable for regular TDS returns filed via Form 26Q? If not electronic, can relief be obtained through the Assessing Officer directly?
If Form 26A is applicable, would my liability be limited to interest under Section 201(1A) at 1% per month from date of each payment until the date the builder filed their return for the relevant year? My estimate is approximately ₹15,000-17,000.
Should I file 18 separate 26QBs (one per milestone) or can I consolidate? What is the interest implication of each approach?
Can any CA here handle this end-to-end — 26QB filing + Form 26A certification? I am based in Bangalore. Please share your fees.
I have all supporting documents — cost sheet, payment receipts, bank statements, loan disbursement records, and GST invoices from the builder.
Thank you in advance.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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19 February 2026 You can use Form 26A to avoid paying the ₹96,652 TDS amount since the builder has already paid tax on that income. However, you will still be liable for interest (1% per month) and late filing fees (₹200/day). It is recommended to consolidate installments by Financial Year to minimize penalties. The process is electronic and requires a CA-certified Annexure A.

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