Form 26QB for TDS on property

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This discussion clarifies how to file Form 26QB when TDS wasn't deducted on an initial property payment but was on a subsequent one. It explains that two separate Form 26QB filings are needed, one for each instalment. Interest is payable for the delayed TDS deposit on the first instalment, calculated from the due date. While Section 234E imposes a late filing fee of £200 per day (capped at the TDS amount), it's not a penalty and must be paid before filing the TDS return.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)
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14 November 2024 1st instalment paid for purchase of property was May 24, where no TDS was deducted. However in the 2nd instalment paid in Oct 24 the TDS was deducted @1% on the total purchase consideration. How to show this while filing Form 26QB? Whether interest is to be paid for delay in TDS deposited for 1st instalment?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 November 2024 Yes, for that you need to file two form 26QB; one each for each installment.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)
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14 November 2024 Thanks for your prompt reply. In the case of First Form 26QB related to payment made in May 24, we will have to deposit TDS along with interest and penalty?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 November 2024 Correct, only interest for last 6 months.

MONIKA SALHOTRA

MONIKA SALHOTRA (Querist)
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15 November 2024 While filling the form, it is mentioned - If the date of furnishing Form 26QB is beyond the prescribed due date, it may attract late filing fee u/s 234E. This means penalty amount has also to be paid?
Please advise

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 November 2024 No filing or late filing of statement of TDS / TDS returns (Form 26QB) shall invite late fees under section 234E. It should be filed with challan within a period of Thirty days from the end of the month in which the deduction is made. Deductor will be liable to pay by way of fee of Rs 200 per day till the failure to file TDS statement continues. The total fee cannot exceed the amount of TDS deductible for which statement was required to be filed. TDS return cannot be filed without payment of late filing fees. In other words, the late filing fees shall be deposited before filing the TDS return (Form 26QB). It should be noted that Rs. 200 per day is not penalty but it is a late filing fee.

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