26QB Penalty

Late filing of TDS Statements

If a buyer of property fails to file the required Form 26QB for TDS (Tax Deducted at Source), they will be liable to pay a fee of Rs. 200 for every day of the failure. The buyer will also be responsible for any defaults related to late deduction or payment, and interest charges may be levied. Additionally, the Assessing Officer may impose a penalty under Section 271H.

For the seller of the property, if they fail to file Form 26QB, they will not be able to claim the TDS credit. The TDS amount should be deposited to the government account through e-tax payment or authorized bank branches within seven days from the end of the month in which the deduction is made.

Penalties For non-filing of Form 26QB

If TDS (Tax Deducted at Source) is not deducted on the property transaction, a penalty of 1% per month will be levied from the date on which TDS should have been deducted to the date on which it is actually deducted.

If TDS is deducted but not remitted to the government, a penalty of 1.5% per month will be levied for the period from the date on which TDS is deducted to the actual date of payment. These penalties are applicable in case of non-filing of Form 26QB, which is mandatory for TDS payment and remittance for property transactions.

Under section 271H, the Assessing Officer has the discretion to levy a penalty when a statement required by tax laws is not submitted on time. The penalty amount must be more than Rs. 10,000 and can go up to Rs. 1 lakh. However, if the TDS is deposited with the applicable fee and interest, and the statement is submitted within one year of the prescribed time, no penalty will be levied.

Here’s a clear breakdown of 26QB Penalty for TDS on Property Transactions based on your post and the tax rules:

1. Who must file Form 26QB?

The buyer of the property who deducts TDS on the sale price.
Filing Form 26QB is mandatory for deducting and depositing TDS on property transactions.

2. Deadlines for TDS deduction and deposit

TDS must be deducted at the time of payment (either full or installment).
TDS must be deposited to the government account within 7 days from the end of the month in which TDS was deducted.
Form 26QB must be filed along with TDS payment.

3. Penalties for Late or Non-filing of Form 26QB

Default	Penalty
Late filing of Form 26QB	₹200 per day from the due date until filing happens.
Failure to deduct TDS on property transaction	Penalty of 1% per month on the amount of TDS that should have been deducted (from due date until deduction).
Deducted TDS but not remitted to the government	Penalty of 1.5% per month on the TDS amount (from date of deduction to actual payment).
Non-submission of TDS statement (Form 26QB) under Section 271H	Penalty of minimum ₹10,000 and up to ₹1,00,000, but waived if TDS + interest + fee paid & statement filed within 1 year.

4. Consequences for the Buyer

Buyer is liable for the penalty and interest for delays or defaults.
Failure to file 26QB means loss of credit for the seller.

5. Consequences for the Seller

Seller cannot claim TDS credit if 26QB is not filed.
This could affect their tax returns and cause notices.

Summary:

Action	Due Date	Penalty
Deduct TDS on property payment	At time of payment	1% per month penalty for non-deduction
Deposit TDS	Within 7 days from end of month of deduction	1.5% per month penalty for late payment
File Form 26QB	Along with payment	₹200 per day delay
File statement late (Section 271H)	Within 1 year of due date	₹10,000 to ₹1,00,000 penalty (waived if paid with interest & fee within 1 year)