How many Form 26QBs in a joint purchase?

Each buyer files a separate Form 26QB for each seller. Two buyers and two sellers require four Form 26QBs reflecting respective shares of consideration and TDS.

Does Form 26QB apply to under-construction properties?

Yes. TDS at 1% applies on each installment payment for under-construction properties where total consideration exceeds ₹50 lakh. A separate Form 26QB is filed for each payment.

Form 26QB – TDS on Purchase of Immovable Property | NDS Avla

Form 26QB – TDS Return on Purchase of Immovable Property (Section 194IA)

Q: What is the TDS rate on Form 26QB?

TDS is at 1% on the higher of actual sale consideration or stamp duty value (circle rate) of the property — per the Finance Act 2022 amendment to Section 194IA.

Filing, Correction & Form 16B Generation for Buyers of Immovable Property

Form 26QB is the combined challan-cum-statement prescribed under Section 194IA of the Income Tax Act for reporting TDS deducted by the buyer on purchase of immovable property valued at ₹50 lakh or more. Unlike regular TDS returns which are filed quarterly, Form 26QB is a transaction-specific filing — one form for each buyer-seller combination — and must be filed within 30 days from the end of the month in which TDS was deducted. No TAN is required; the buyer's PAN and the seller's PAN are sufficient.

Form 26QB serves a dual purpose: it is both the TDS payment mechanism (the tax is deposited simultaneously through net banking/debit card) and the statement filed with the government. After successful filing, the seller can view TDS credit in their Form 26AS/AIS, and the buyer can download Form 16B from TRACES to give to the seller. This page covers Form 26QB in detail. For NRI sellers where different rules apply, see Form 27Q and lower TDS certificate services.

Form 26QB — Key Details

Parameter	Details
Applicable Section	Section 194IA — TDS on purchase of immovable property
Who Files	Buyer of immovable property (except agricultural land)
Threshold	Total consideration ₹50 lakh or more
TDS Rate	1% of sale consideration (or stamp duty value if higher)
Filing Deadline	Within 30 days from end of month of TDS deduction
TAN Required	No — buyer's PAN is sufficient
TDS Certificate	Form 16B — downloadable from TRACES by buyer; to be given to seller
Late Fee	Section 234E — ₹200 per day (max = TDS amount)
Correction	Through TRACES — PAN, amount, property details can be corrected

Our Form 26QB Services

Form 26QB Preparation & Filing

Preparation of Form 26QB with correct TDS computation (checking stamp duty value vs. sale consideration), PAN verification, and online payment and submission on TIN-NSDL portal.

Form 16B Issuance

Download of Form 16B from TRACES after 5 working days of Form 26QB filing and providing it to the seller within the prescribed 15-day period — ensuring the seller has TDS proof for their return.

Instalment-Based Property TDS

Advisory and filing for properties where consideration is paid in multiple installments — TDS at 1% on each installment payment, with a separate Form 26QB for each payment made.

Form 26QB Correction Filing

Correction of errors in filed Form 26QB — seller PAN correction, consideration amount update, property details correction — through the TRACES correction mechanism.

Demand Notice Response

Response to Section 200A intimations and Section 201 demand notices for short deduction, late deposit, or non-filing of Form 26QB — with supporting documents and compliance certificates.

Joint Buyer / Joint Seller Advisory

Advisory on Form 26QB filing where there are multiple buyers and/or sellers — each buyer-seller pair requires a separate Form 26QB, with TDS apportioned based on each buyer's share.

Frequently Asked Questions

What is the TDS rate on Form 26QB and is it on the agreement value or registration value?

TDS on Form 26QB is at 1% under Section 194IA. Since the Finance Act 2022 amendment, TDS is computed on the higher of the actual sale consideration agreed in the sale agreement or the stamp duty value (circle rate/guidance value) of the property. If the sale agreement price is ₹55 lakh but the stamp duty value is ₹70 lakh, TDS must be computed on ₹70 lakh. This amendment was made to align TDS with the capital gains computation under Section 50C.

How many Form 26QBs need to be filed in case of joint purchase?

In case of joint buyers and/or joint sellers, each buyer must file a separate Form 26QB for their respective share of TDS. For example, if two buyers (A and B) purchase a property from two sellers (X and Y), then 4 Form 26QBs need to be filed — A-X, A-Y, B-X, B-Y — each reflecting the respective share of consideration and TDS. Each buyer downloads Form 16B for their corresponding TDS and provides it to the respective seller.

Can Form 26QB be filed for a property under construction (under-construction flat)?

Yes. TDS under Section 194IA applies to both ready-to-move and under-construction properties. For under-construction properties where the consideration is paid in installments (to a builder/developer), TDS at 1% must be deducted on each installment payment, and a separate Form 26QB must be filed for each payment if the total consideration exceeds ₹50 lakh. The total consideration for determining the ₹50 lakh threshold is the entire agreed consideration, not each individual installment amount.

What if Form 16B is not downloaded and given to the seller?

Form 16B must be downloaded from TRACES by the buyer and provided to the seller within 15 days from the due date of furnishing Form 26QB. If the buyer fails to issue Form 16B within the prescribed time, a penalty under Section 272A(2)(g) of ₹100 per day may apply. The seller needs Form 16B to claim TDS credit in their income tax return. Without Form 16B, the seller may have difficulty reconciling TDS credits visible in their Form 26AS/AIS with a formal certificate.

Purchasing Property? We Handle Form 26QB from Start to Form 16B.

Our team computes TDS correctly (including stamp duty value comparison), files Form 26QB on time, downloads Form 16B from TRACES, and handles all corrections and demand responses.