REGARDING LATE FILING OF FORM 26QB

This query is : Resolved

Suresh S. Tejwani (Querist)
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02 July 2025 FORM 26QB IS TO BE FILED FROM 30 DAYS FROM THE END OF MONTH IN WHICH TDS IS LIABLE TO BE DEDUCTED THEN 26QB IS TO BE FILED FOR EACH PAYMENT OF INSTALMENT ?
AND IF WHOLE TDS IS PAID IN ONE TRANCHE AT THE TIME OF PURCHASE AGREEMENT THEN WHAT ARE THE CONSEQUENCES FOR NOT FILING 26QB FOR EACH PAYMENT ?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 August 2025 1. Due Date for Filing Form 26QB
Form 26QB (TDS on sale of immovable property) must be filed within 30 days from the end of the month in which TDS was deducted.
For example, if TDS was deducted in May, the last date for filing Form 26QB is 30th June.
2. Is Form 26QB to be filed for each instalment?
Yes. Form 26QB should ideally be filed for each payment of instalment on which TDS is deductible.
If the payment is made in multiple instalments (e.g., part payment on booking and balance later), TDS has to be deducted and deposited for each instalment separately, and a separate Form 26QB filed for each.
3. What if the whole TDS is deducted and paid in one tranche?
Sometimes, the buyer deducts and deposits TDS on the entire sale consideration upfront (e.g., at the time of agreement or first instalment).
In this case, only one Form 26QB needs to be filed, covering the entire amount and TDS deducted.
Subsequent instalments where no further TDS is deducted do not require separate Form 26QB filings.
4. Consequences of not filing Form 26QB for each payment instalment (if TDS deducted on instalments separately)
Non-compliance penalties:
A late fee of ₹200 per day (up to a maximum of ₹10,000) can be levied under Section 234E for delayed filing of TDS returns.
Interest under Section 201(1A) can be charged on the delayed deposit of TDS.
The deductor (buyer) may also be liable for penalty under Section 271H.
Impact on Seller:
The seller may face issues in claiming TDS credit if Form 26QB is not filed timely.
Delay can cause problems in matching TDS with seller’s Form 26AS.
5. Best Practices
Deduct TDS at the time of each payment (instalment).
File Form 26QB within 30 days from the end of the month in which each instalment’s TDS was deducted.
If entire TDS is deducted upfront, file one Form 26QB for full amount at that time.
Keep documentation handy for smooth processing.

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