TDS - Form 26 QB
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23 September 2025
My friend is buying a house property for Rs. 85 lakhs. While making the payment to the seller he has to deduct Rs. 85,000/- as TDS. In this regard, shall I prepare Form 26 QB and remit the TDS amount.
23 September 2025
Yes, also check the circle rate of the property.
23 September 2025
To deduct TDS (Tax Deducted at Source) on property in India (2025), the buyer must follow a specific process outlined under Section 194-IA of the Income Tax Act. TDS applies when the sale value or the stamp duty value of the property exceeds ₹50 lakh. Below is a concise guide based on the most recent and authoritative sources:
TDS is applicable if the sale value or stamp duty value of the property exceeds ₹50 lakh.
The buyer must deduct 1% of the higher of these two values (sale consideration or stamp duty value) before making any payment to the seller. For example, if the sale agreement is for ₹85 lakh but the stamp duty value is ₹90 lakh, TDS must be calculated as 1% of ₹90 lakh.
If the seller does not provide a PAN, TDS will be deducted at 20%.
TDS is applicable if the sale value or stamp duty value of the property exceeds ₹50 lakh.
The buyer must deduct 1% of the higher of these two values (sale consideration or stamp duty value) before making any payment to the seller. For example, if the sale agreement is for ₹85 lakh but the stamp duty value is ₹90 lakh, TDS must be calculated as 1% of ₹90 lakh.
If the seller does not provide a PAN, TDS will be deducted at 20%.
23 September 2025
PAN Collection: Ensure both buyer and seller have valid PAN cards. Collect and verify the seller’s PAN information.
Deduction: At the time of payment (whether lump sum or installment), deduct 1% TDS on the total value at each stage.
Deposit with Government: Deposit the deducted amount using Challan-cum-statement Form 26QB, available through the Income Tax e-filing or TIN-NSDL portal.
The buyer does not need a TAN (Tax Deduction Account Number); PANs of both parties are required.
Payment must be made within 30 days from the end of the month in which TDS was deducted.
TDS Certificate: After payment, download Form 16B from the TRACES portal. Provide this TDS certificate to the seller as official proof of deduction.
Deduction: At the time of payment (whether lump sum or installment), deduct 1% TDS on the total value at each stage.
Deposit with Government: Deposit the deducted amount using Challan-cum-statement Form 26QB, available through the Income Tax e-filing or TIN-NSDL portal.
The buyer does not need a TAN (Tax Deduction Account Number); PANs of both parties are required.
Payment must be made within 30 days from the end of the month in which TDS was deducted.
TDS Certificate: After payment, download Form 16B from the TRACES portal. Provide this TDS certificate to the seller as official proof of deduction.
23 September 2025
Good luck....
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