Query on form 26QB and TDS deduction

1) pan of seller is necessary

2) Address of property  Date of auction

3) TDS 1 % on each installment 

4)  penalty will be auto calculated 

In government auction cases:

• Seller is usually Government / Authority / Bank / Recovery Officer
• They provide only PAN
• Aadhaar is not applicable

So you can proceed with PAN only.

 Deposit:

• TDS = ₹35,000
• Interest (calculate exactly)

In your case:
You did NOT deduct at time of payment.

So interest = 1% per month
From date of payment till date of deduction.

• Late fee auto-calculated in portal
• Faster you pay → less late fee.

File 26QB Immediately

System auto calculates 234E.
No way to waive through portal.

Penalty Avoidance Strategy

Penalty u/s 271H can be avoided if:

1. You pay:
• TDS
• Interest
• Late fee
2. File within 1 year of due date

Then normally no penalty notice.

Future Installments

For remaining ₹45 lakh: Deduct TDS at time of each payment.

TDS on property is calculated on the actual sale consideration paid (not the stamp duty value), and the rate is 1% under Section 194-IA. You deduct and deposit TDS each time you make a payment, not just at the end. If you pay in installments, each installment needs a separate Form 26QB within 30 days from month-end. The limit of Rs. 50 lakh is on the total sale value, so even if you pay less than Rs. 50 lakh in an installment, TDS still applies if the total deal is above that threshold.

Detailed guide: https://taxgarden.in/blog/tds-on-property-purchase-section-194-ia-form-26qb-india

Property purchase TDS under Section 194-IA (now under Section 393 of the Income Tax Act 2025) applies because your consideration of Rs 80 lakhs exceeds the Rs 50 lakh threshold.

What to deduct and on what

- Rate: 1% of the total consideration
- On Rs 80 lakh: TDS = Rs 80,000
- Deduct at the time of payment (or credit, whichever is earlier) ,  if you paid in instalments, deduct 1% on each instalment

How to file Form 26QB

File on the TIN NSDL portal (not your income tax e-filing login). Steps:
1. Go to TIN NSDL, select Form 26QB
2. Enter buyer and seller PAN, property details, transaction amount
3. Pay the TDS online or generate a challan for bank payment

Deadline

The TDS must be deposited within 30 days from the end of the month in which TDS was deducted. Late deposit attracts interest at 1.5% per month under Section 201(1A).

Form 16B

Once TDS is deposited and Form 26QB is processed (usually 3-5 days), you can download Form 16B from TRACES and issue it to the seller. The seller needs it to claim the TDS credit.

For the complete TDS rate table across all payment types including 194-IA property purchase, this [TDS rate chart for FY 2026-27](https://taxgarden.in/blog/tds-rate-chart-2026-to-2027) has the thresholds and deadlines for each section.