Urvi Parekh Ambbala

As we all know that the purchaser of property with value of Rs. 50 lakh and above should deduct 1% TDS at the time of making payment. Here is the guide about making payments of TDS and obtaining form 16B for the buyer and form 26QB for the seller.

I would like to run the readers through the TDS payment process and the steps to be taken to obtain Form 16B (for the deductor or buyer) and Form 26QB for the (seller or deductee):

Firstly one has to go to the site of Tin.nsdl in following link: https://onlineservices.tin.egov-sdl.com/etaxnew/tdsnontds.jsp

Online Payment through Challan 26QB:

Once this link is opened click on Form 26QB (Payment of TDS on sale of property). Select (0021) in case of non corporate payer and 0020 in case of corporate payer. On filling in the various details called for in that form, click on ‘Proceed’ at the bottom of the page, this will then take you to the next page, which will give you the option to select your bank. Once you select the bank, then login using the normal online process for your bank. Once the payment is made the bank will let you print challan 280 with a tick on (800), which is payment of TDS on sale of property. Take a printout of the challan and keep the same for your records and for the builder/seller if required. This is the first phase of the process.

There is also alternative mode payment if one does not have online banking registration.

One can fill in the form as above & while proceed there is option of “Subsequent payment through bank”

Choose that & it allows you to generate online receipt for Form 26QB with Ack no.

The same can be valid for 10 days from the date of generation online.

The same is to be carried at the authorized bank (list is given on the TIN.nsdl site) with cheque.

Bank will do online payment for you & generate Challan.

Generation of Form 16B:

Once this is completed one has to wait for seven days for the details to be reflected on TRACES web site – https://www.tdscpc.gov.in/.

 As a first time user, you will have to register on this website as Tax Payer with your PAN card no. & Challan no as generated while payment (no need to have TAN)

Once you register whether as seller or buyer, you will be able to obtain the Form 16B or 26QB which has been approved and is reflected against your PAN in your Form 26AS. Check Form 26 AS after seven days and you will notice that the payment you had effected against TDS on sale of property is reflected in Part F of the Form 26 AS under ‘Details of Tax Deducted at Source on Sale of Immoveable Property u/s 194(IA) [For Buyer of Property]. This will give you details such as the TDS certificate number (generated by TRACES), name of deductee, PAN of deductee, acknowledgement number (same as above on Form 26QB), total transaction amount, transaction date, TDS deposited, date of deposit, status of booking and date of booking.

Once the payment is reflected in 26AS as above, you will have to go to the TRACES again. Login to the website & Go to ‘Download’ Tab & make application for request of Form 16B

To make a request for download, here fill in the acknowledgment number (nine digit number) & required details as asked which is reflected on Form 26AS Part F as mentioned above.

It will give application & generates an application request number.

Now, click on ‘Downloads’ tab. In the drop down menu click on ‘requested downloads’. You can filter by way of Request no or by Date filter.

You can see you request for Form 16B as Submitted.

Within a couple of hours, the application gets processed and you will be able to view your Form 16B as Available.

Download it & it will give Zip file, save at your destination & to open it, use the password of Date of birth of Deductor. (DDMMYYYY)

Form 16B will be available in PDF format.

You can take a printout of the same for your records as well as for handing over to the seller of the property. A similar process has to be followed by the seller to obtain form 26QB.

Republished with Amendments

More Under Income Tax

77 Comments

    1. CA Sagar Gambhir says:

      Both Buyer’s need to file their seperate Form 26QB for their respective share. In case of Installment payment, you need to pay TDS every time installment is paid. There is specific option in Form 26QB to mention Total Consideration, date of Agreement & current payment amount & date of current payment.

  1. AJAY THAKUR says:

    THERE ARE MORE THAN ONE SELLER BUT WHILE MAKING THE PAYMENT PAN OF ONE SELLER WAS ONLY PROVIDED.AND SUBMITTED FORM 26 QB ? HOW CAN THE CORRECTION BE DONE IN THIS CASE? IS THERE A WAY TO CORRECT THIS ?

  2. Venkat says:

    I brought the property in chennai, tamilnadu. Now I am planning to pay the tds, I am staying in chennai since two years. Can I provide communication address in 26QB form or I have to provide permanent address? . Please answer me.

  3. Jigar Shah says:

    I JUST WANT TO CLEAR THAT IF I HAVE BROUGHT A PROPERTY OF 1CR IN NAME OF THREE BUYERS IN A PROPORTION OF 35:35:30 THEN WHAT IS THE AMOUNT I HAVE TO ENTER IN “TOTAL VALUE OF CONSIDERATION” IN EACH BUYER FROM OF TDS 26QB
    SHALL I ENTER
    BUYER ONE = 3500000
    BUYER TWO = 3500000
    BUYER THREE = 3000000
    PLEASE GUIDE ME

  4. sukh says:

    Some one purchased a property in 2012 and made 100% payments in 2012. The property was transfereed in his name by the builder in jan 2013 itself. But the registration of the property was delayed and was done in Aug 2013. Was the buyer liable to deduct the TDS at the time of registration even though the consideration was exchanges before this law. The person has now got a notice from tdscpc.

  5. Nihar says:

    Dear Sir,

    One of my client has purchased a flat wherein the Value of the property as per Stamp duty valuation is Rs 66.03 lakhs. However he brought the flat at half the price i.e. 33 lakhs due to real estate market fall. Now the issue is, my client has received notice from Traces stating that he has not deducted TDS @ 1% and not filed Form 26QB.

    As per the plain reading of clause 2 of Section 194IA Act, TDS provision is applicable only if consideration paid for transfer of an immovable property is more than or equal to 50 lakhs.

    Kindly provide a solution as how to reply to Traces notice received in form of email.

  6. arun says:

    hello sir, I had applied for home loan to buy flat. The bank stipulates that the TAX should be deducted prior to loan disbursement. My question is if I consider 26QB before loan disbursements then what do I enter in the few sections where the value is known only post loan discursement – Total Amount Paid/Credited(because this is only 20% of actual flat amount; remaining is loan) and Date of Payment/Credit.

  7. Maruti says:

    I got same problem during payment and called TIN service center. He told, ack number is valid only when payment is complete. He asked me to fill form 26QB againand submit. I did it by connecting to more reliable network this time.
    Hope it helps.

    1. rajat singh says:

      Thank you sir for the useful information that you kindly provided.

      I have one questions.
      If buyer and PAN Assessing Officer are in different city then is it possible if someone else can submit the rectification application to AO.

  8. Ajay says:

    Hi, Thank you for hat comprehensive detail on form26qb. It certainly helped a lot.. I have a small doubt though…

    My registration date is 24/Mar/2015.

    Then financial year to be filled in form 26 qb should be FY14-15 and AY would be 15-16..

    please confirm whether above is correct.

    OR as i am paying income tax now in november 15, then it would be FY15-16 and AY 16-17..?

  9. Charu says:

    Hi, Thanks for the article. I am applying for home loan to buy flat. The bank stipulates that the TAX should be deducted prior to loan disbursement. My question is if I consider 26QB before loan disbursements then what do I enter in the few sections where the value is known only post loan discursement – Total Amount Paid/Credited(because this is only 20% of actual flat amount; remaining is loan) and Date of Payment/Credit.

  10. Prakash says:

    Hello,

    Thank you for the right guidance.

    There are two joint names as Buyers. The 1st Holder is a Minor (holding PAN) and in the Sale Deed, Father signs as a Natural Guardian and therefore during registration of the Sale Deed Father’s PAN is entered in their records. Entire payment is made from 1st Holder, Minor’s Bank account.

    The second holder does not contribute anything.

    Query is:
    In 26QB do I mention ONLY 1st Holder’s PAN (since he has it) and not mention second buyer (since no contribution made)
    OR
    do I mention Father’s PAN, who signed as natural guardian, but no payment gone from Father’s bank account, so he is not the buyer actually.
    OR
    do I mention two buyer names (and PANs) and 1st holder as Minor or Father ?

    Thanks in advance

  11. Raj Singha says:

    I am supervising the accounts of two companies viz Company-A & Company-B, so when i was to pay the tax on purchase of property in form 26QB. i wrongly deposited tax of Company B (Purchaser) instead of Company A (another purchaser)even i have filled up the details of 26QB of Company-B instead of Company-A where all particulars & amounts are different
    PLEASE tell me what to do, how can i rectify this amount?

  12. Sriram says:

    To retrieve the Form26QB – if you have the acknowledgement number.

    onlineservices.tin.egov-nsdl.com/etaxnew/PaymentDemand?rKey=-754604570&link=demand

  13. mohan says:

    A PERSON HOLDING GPA IS GOING TO GET PROPERTY REGISTERED IN MY NAME .IN WHOSE NAME SHOULD I ISSUE DRAFT TO ORIGINAL OWNER OR GPA.ALSO I SHOULD DEDUCT TDS IN WHOSE NAME.ORIGINAL OWNER IS AN NRI LIVING IN CANADA.

    ans: sale deed parties important then original owner PAN basis is folowed

  14. mohan says:

    1] Whats is the procedure in case, where more than one “buyer/payer” and more than one “seller/payee”? and 2]in such cases, whose information to be given in Form 26QB at the time of making payment online as there is only one box each for stating PAN for “buyer/payer” and “seller/payee”???

    ans: we are followed sale deed details must and should and as well as 1 st parties details are important

  15. mohan says:

    Please tell me the procedure if there are 2 purchasers. The amount of TDS is to be be mentioned in Sale Deed or not?

    yes, sure if not mentioned the 194 I A provisions applied

  16. mohan says:

    if any wrongly entered 26 QB payment (date, month, year) then u have to prepared letter to ur TDS Jurisdiction officer he will may be rectified correctly

    i am also given example as ur client mistakes wrongly entered year in 26 qb

    PAN: xxxxxxxx

    From: Date: dd-mm-yyyy

    Name of purchaser: xxxxxx

    D.No.xxxxx,

    xxxxxxx,

    xxxxxx,

    xxxxxx.

    To

    Income Tax Officer,

    TDS – WARD – x(x)

    xxxxxxx.

    Sir,

    Sub: Rectification of mistakes – Form no. 26QB – in our own case-

    Request –Reg.

    Ref : Form no. 26QB in Acknowledgement no. Axxxxxx6,

    Dt: dd-mm-yyyy. (Copy filed).

    I 1. purchaser(xxxx), along with my brother 2.purchaser(xxxxx)

    purchased jointly, a site measuring land, buildings(Address)
    . The

    details of afore said transaction are given below:

    1. Date of registration : dd-mm-yyyy

    2. Document No. : xxxx / xxxx

    3. Total Sale Consideration : Rs. xxxxxxx /-

    .

    4. Name & Address of Vendor : xxxxx

    S/o.xxxxx.

    xzxxxx

    D.No. xxxx-xxx-xxx,

    xxxx xxxxx.

    5. Name of the Vendee : xxxxx
    xxxxxxx

    Since both of us purchased the aforesaid property and we shared the said

    property as well as sale consideration equally i.e., for a consideration of Rs

    xx/- each (50% of total consideration of Rs xxxx).

    Therefore, for the above transaction, the tax of Rs.x /- was deducted

    on dd-mm-yyyy, under section 194IA of the Income Tax Act by each of us

    equally. The said tax was remitted in to the Central Government account on

    dd-mm-yyyy and on the same day, Form no. 26QB was filed. While filing

    form no. 26 QB, following mistakes have been committed by me. The

    details of given below.

    1. Date of Agreement / Booking: In this column it was mentioned as Examples)

    04- 06-2013 instead of 04-06-2015 (Date of Booking).

    2. Date of Payment / Credit : In this column it was mentioned as

    04-06-2013 instead of mentioning date of issue of Cheques on 03-06-

    2015.

    : 3 :

    3. Date of Deduction : It was mentioned as 04-06-2013 instead

    of 04-06-2015.

    Since above mentioned mistakes have been occurred while filing form no.

    26QB , we tried to rectify the same. Aforesaid mistakes could not be rectify

    online and we were advised to contact the Income tax officer, (TDS)

    concerned. Hence, it is requested to kindly consider for rectifying above

    mistakes that occurred in form no. 26QB.

    Following enclosures are submitted for ITO’s kind consideration.

    1. E – Tax Acknowledgment No. Axxxxxxx9. Evidencing filing of form

    no. 26QB .

    2. Copy of the Registered Deed dated: 05-06-2015 in document no.

    3130 / 2015 with regard to the transaction.

    3. Challan for payment of Rs.x/- under sec. 194 IA of the IT Act.

    Thanking You,

    Your’s faithfully,

    (purchaser).

    PAN: purchaser s pan

  17. reema says:

    i had paid the tax through internet banking for on purchase of property 26 qb but did not take a print of it. I have the acknowledgement/reference number for the paid tax. From where can i retrieve the acknowledgment receipt. AND FOR 26QB PRINT

  18. AMIT says:

    I have selected wrong date of deduction while filling form 26QB.

    How can I rectify date of deduction get corrected in these forms ?

    please advise.
    Thanks & Regards,
    Amit
    8510034777

  19. AMIT says:

    I have selected wrong Financial year while filling form26QB, Now form16B is available for download.

    How can I get financial year / Assessment year get corrected in these forms ?

    please advise.

    Thanks & Regards,
    Amit
    8510034777

  20. V RAVICHANDRAN says:

    I have paid 26qb challan through internet banking. but by mistake the payment is debited twice in my account. How can i reverse the same.
    pls clarify

    Regards
    RAVICHANDRAN V

  21. JSCB says:

    sir i have paid 1% tds amount on28/02/2015 on sale of a property but i did not taken a print for the same now i want 26qb copy how to take a print please help me

  22. Rohit says:

    Sir,

    I have bought my property in the year 2013 and by mistake i have given the wrong registration date and due to that i have got the default notice and have been levied a huge penalty. Can you please let me know what is the procedure of submitting the rectification on my TDS that I have already deducted. Appreciate your help on this.

    Thanks
    Rohit

  23. Dr.P.K.singh says:

    Reply to all above Simply Type FORM 26QB in google . The Form will come and fill this farm promptly as per the records of Buyer Seller agreement . The payment option will come 1. immediate payment 2. e payment on subsequent date after payment by normal on line payment for bank. Once payment is made the bank is let you print challan 280 with a tick on 800 which is payment of TDS on sale of property. take a print of challan.The other option is subsequent payment through bank.. Generate FORm 26QB with Acknowledgement which will be valid for 10 days from the date of generation . Go to bank along with these for e payment by bank personnel.

  24. Arpita says:

    I think in 26QB I have selected “Others” option instead of “Income Tax”.
    So, TDS paid by me is not reflected in Seller’s 26AS. In Form 16B, though the amount is shown paid by me, but zero is shown against Seller’s NAME & PAN.
    Please advise how to correct this mistake and get the corrected 16B.

  25. Amarnath says:

    I have selected “Fee (Form 26QB) option instead of selecting “Income Tax”.
    What will happen? Will it be reflect in the Form16B with the seller’s TDS account? or Where that money goes? Will it be corrected or refunded back?
    Please reply to this post.

  26. Siva says:

    Hi. I have paid TDS using 26QB, but could not get the print out which has aknowledgement number. My bank account has been debited for deposit to treasury.
    How can I get reference of this 26 qb form which I may require while filing tax return.
    Thanks

  27. NAGARAJ says:

    i had paid the tax through internet banking for on purchase of property 26 qb but did not take a print of it. I have the acknowledgement/reference number for the paid tax. From where can i retrieve the acknowledgment receipt. AND FOR 26QB PRINT

  28. Prachi Kothari says:

    i had paid the tax through internet banking but did not take a print of it. I have the acknowledgement/reference number for the paid tax. From where can i retrieve the acknowledgment receipt.

  29. suman says:

    I have selected wrong Financial year while filling form26QB, Now form16B is available for download.How can I get financial year / Assessment year get corrected in these forms ?please advise me.

  30. P K TIWARI says:

    Dear sirs, I am depositing TDS regularly and first time during deposit 3 months was delayed therefore tdscpc has intimated to deposite defaulted amount Rs408/- but we dont know how to deposit under head 800 and Tax applicable 021. and how to deposit online ? Reply awaited please upto 20th April 2015 within 1 month to deposit.

  31. surangi says:

    I got the ack no. of Form 26QB and had taken the print, then after I was submitting this to bank for e-payment immediately- I got Server error and it got closed.

    Please advise whether I have to fill again the Form 26QB & then make the payment

  32. Deb says:

    hi,

    will it be a issue if while filling form 26 QB, the state name was incorrectly mentioned, however the pincode and district reflects correctly.

  33. Anish K. Mangla says:

    Dear all,

    While depositing payment, we have selected “Others” option instead of “Income Tax”. Due to this mistake, Builder is not able to receive the payment.

    Please help how to get it corrected.

  34. Tanmoy says:

    I have selected wrong Financial year while filling form26QB, Now form16B is available for download.How can I get financial year / Assessment year get corrected in these forms ?please advise

  35. Anil says:

    Is form 26QB will be applicable even to the person who is purchasing the property from the NRI having Pan No in India. What rate of tds to be deducted if the property is purchased from NRI having Pan No because since sec 194 IA requires the seller to be Resident.

  36. Anil says:

    Is form 26QB will be applicable even to the person who is purchasing the property from the NRI having Pan No in India. What rate of tds to be deducted if the property is purchased from NRI having Pan No because since sec 194 IA requires the seller to be Resident

  37. mahesh giri says:

    I have submitted form 26qb earlier but I did’t take the print out on that time.
    Now I am requesting for form 16b but I don’t have the acknowledgement no. Please suggest me how can I resolve the problem..?

  38. Kamlesh Mehrotra says:

    I made a mistake of selecting “others” instead of “Basic Tax”, so TDS paid by me is not reflected in Seller’s 26AS. As a result in Form 16B, though the amount is shown paid by me, but zero is shown against Seller’s NAME & PAN. Please advise how to correct this mistake.

    1. Sachin says:

      Guys,

      I am also facing similar issues. However, I got to know from IT dept that there is no correction so far introduced on form 26 QB.
      This is very annoying as its been more than 6 months since this form has been launched and was made mandatory however no correction machanism so far….

      Does any one have any better inputs, pls share…

  39. ankita says:

    what if i have not noted the acknowledgement number? please guide me some other way, how will i get generated form 16b without acknowledgement number.

  40. Lokesh says:

    I have selected wrong Financial year while filling form26QB, Now form16B is available for download.
    How can I get financial year / Assessment year get corrected in these forms ?
    please advise.
    thanks

  41. Lokesh says:

    Sir,
    please help me in how to get my assesment year corrected, i have entered wrong assesment year in the form 26qb and due to which assesment year in form 16b is reflcting wrong assesment year…
    Now what should i do.
    Plz help me.

  42. Sachin says:

    I have selected wrong Financial year while filling form26QB, Now form16B is available for download.

    How can I get financial year / Assessment year get corrected in these forms ?

    please advise.

    thanks

  43. Anil Saxena says:

    if More than one Seller, and one Buyer and total amount 85 lack (54200+30800). what Should we do to fill 26QB.
    Please Suggest us as earlier.
    thanks

  44. Naveen says:

    irctc.co.in is the worst website in the world. “tdscpc.gov.in” gives irctc close competition!!!

    Absolutely ridiculous to wait for 4 to 5 days to get Form 16B. I hope the BJP government stops this rubbish or streamlines this process…

  45. manish says:

    I filled form 26qb for deduction of 1% tds and selected “Other Option” instead of Builder Name on whose account the benefit of 1% TDS should have been deducted and deposited. What is the way of correcting it?

  46. N. Ravindranath says:

    Dear Sir,

    If the property is purchased by both wife and husband with 50% share as co-owners and consideration paid is Rs. 80,00,000 and share of each seller is less than Rs. 50,00,000, can we assume that no tax need be deducted?

  47. Bhavesh says:

    Mr. Samy,

    The capital gain from sale property shall be taxable in the hand of original owner only. As far as your question, in whose nameTDS to be deduct @ 1% u/s 194(IA)????

    The answer to above queation is as followals:
    1. First of all the TDS shall be deduct in Original owner name and not in the name of GPA.

    2. Second thing In this case, the liability to deduct TDS will not come u/s 194(IA), as this section applicable only to A RESIDENT PERSON only. Hence in this case the liability to deduct TDS WILL COME U/S 195

  48. Vivek Sethia says:

    In case of more than one buyer, they should deduct/pay tds separately in proportion to the payment made by them in relation to purchase of the property.

  49. samy jain says:

    A PERSON HOLDING GPA IS GOING TO GET PROPERTY REGISTERED IN MY NAME .IN WHOSE NAME SHOULD I ISSUE DRAFT TO ORIGINAL OWNER OR GPA.ALSO I SHOULD DEDUCT TDS IN WHOSE NAME.ORIGINAL OWNER IS AN NRI LIVING IN CANADA.

  50. piyush makkar says:

    what will be done if value of property is less than Rs 50 lakh before service tax but after inclusion of service tax it becomes more than 50 lakh?

  51. vswami says:

    REACTIONS (Personal; but for the common good):
    “……You can take a printout of the same for your records AS WELL AS FOR HANDING PVER TO THE SELER of the property…” (FONT supplied). On the face of it, if reflected on for a few moments, none, if were to go even by common sense, can fail to realise that the highlighted requirement is redundant and unwarranted. For, it is tantamount to a mindless requirement involving duplication of the same data already available online (in 26AS), to all concerned – besides the Revenue, the deductee as well. Hence, it should be urged to be dispensed with by the Revenue, with no reservation, immediately.
    Incidentally, as pinpointed elsewhere on this website, a like vexing requirement mandating taxpayer to take out a printout of the ‘acknowledgment’ of e’ filed tax return, generated online automatically, and then send it to CPC by post does seem to equally make no sense.
    These are two matters requiring a positive and speedy action from the ITD, so as to make the life of deductors / taxpayers less complicated, by freeing from the hassles inherent in TDS regime already muddled up to a great extent.
    To aptly fit into the context herein, though at the cost of painful repetition, it is sad to observe that the Government / ITD has yet to wake up and realise the yawning gaps in section 194 IA; in that, among others, without suitable amendments of the provision (refer the points made in a couple of published articles), any insistence and collection of TDS on transfers in which the subject property is a Flat or Apartment is, in one’s conviction, without the ‘authority of the law’. To be precise, in mindlessly/callously persisting with the faulted practice, the Revenue has continued to expose itself to the odious blame of “unjust enrichment”. Apart from the several other unsavoury and harmful consequences, also pointed out, easily avoidable by plugging in the required correctives, and on a timely basis.
    It is a matter of regret that both taxpayers and their advising learned professionals (not barring the CAs and CSs under the regulatory control of the respective apex bodies – ICICI and ICSI), have, for reasons known only to them, it appears, have chosen to remain disparagingly / disappointingly mute, notwithstanding the deleterious repercussions the deficiencies in the law entail / have in store.
    What is all the more intriguing is that, an open invitation also for a free and frank exchange of the concerned others’ thoughts , if were to be materially different, has also remained to be sincerely heeded as fervently and wishfully expected; thereby leaving one highly disillusiioned about the very purpose usefulness of this and other such websites.

  52. Abhishek Jain says:

    1] Whats is the procedure in case, where more than one “buyer/payer” and more than one “seller/payee”? and
    2]in such cases, whose information to be given in Form 26QB at the time of making payment online as there is only one box each for stating PAN for “buyer/payer” and “seller/payee”???

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