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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

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89 Comments

  1. SANJEEV KUMAR says:

    Hi Sir,

    We had purchased a property amounting Rs. 5.70 Cr in a company whare as seller is individual. We made payments of Rs. 0.70 Lakh at the time of agreement dated 02.04.2021 through two cheque 1st of Rs. 20 Lakh dated 08.04.21 and second Rs. 50 Lakh dated 12.04.21. Also 1.50 Cr paid in the month August 2021 through multiple transfer. Balance to be made in current month through multiple. In this case how TDS to be deposited and 26QB to be generated for every payment or total consideration.

    1. Deepika Maheshwari says:

      I just wanted to know that I have paid the earlier instalments for purchasing the house and when I select the option of leftover amount, the tds is calculated only on the leftover amount whereas I need to pay the 1% tds on sale consideration value.. how should I adjust this in incometax site while filing form 26 QB

      1. Dr. Arvind Kumar Drave says:

        I deposited 1% of TDS on the sale consideration amount of more than 50 lakhs in January 2024 ie 72500, inadvertently date mentioned booking date ie 2016. Now, the rectification form is filled for correction in January 2024. Do I have to pay any demand or not clarify

  2. Siddhi says:

    Hi sir! I filled tds form 26qb and selected online payment but the payment failed cause my netbanking transaction limit was only 30k but my tds was 48k, so I filled another one same problem occurred, i wasn’t able to retrive the form that I filled as the link expired, thr 3rd one I payed offline throught bank, so the 1st 2 form which I filled but payment was not done, how do I delete them, if payment is not done the forms are not considered valid, please tell me how do I delete those 2 previous filled form.

    1. naren says:

      Hi Siddhi,

      I’m also facing the issue (TDS payment failed after form 26QB was generated). Ultimately, how did you solve the issue? Please share your experience.

  3. Pradeep dadhich says:

    I generated 26qb from and received ack no after receiving ack no then I noticed I entered wrong amount in form so can I generate another challan for same and already generated challan will cancel automatically or not, please tell.

  4. PADMA says:

    hi, i bought a property and the sale consideration value was 1,09,00,000. i paid a tds @ 0.75% Rs. 81,750 to the seller PAN. i have to deduct the tds amount & remit the balance to seller. The seller denied to accept the balance amount and he claimed entire 1,09,00,000 from me. i have now paid 10900000 towards property plus tds of Rs 81750 o his PAN. how will i recover 81750 from the seller. he is so insane and he is not understanding the concept of TDS and he claims that he works in the CM office and he never shared his address or seller KYC to me. i got the property registered because i had paid him 15 lakhs as advance and he was threatening me that he will not return my advance money. please suggest what are the actions that i can take in order to get that 81750 which was paid extra from my pocket.

    1. Manish negi says:

      Seller is right if he is asking basic cost of 1.09 CR. You got the property registered in your name. TDS which you have paid against PAN of seller is a part of income central government. It is not refundable.

  5. Arpita says:

    How do we select Tax applicable ( Companie or other than companies).
    In my case seller is a company & buyer is an individual, so what will filled in the tax applicable column?

  6. khyati tuwani says:

    Hey I have paid 40348 while submitting the TDS and have the challan for the same.
    but when it downloaded the form 16b the amount shown as 37423.16.
    how do I get it rectified?
    please help

  7. 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 ?

  8. 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.

  9. 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

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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..?

  15. 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.

  16. 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

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