Form 26QB: TDS on Purchase of Immovable Property Explained

Buying immovable property in India carries a tax obligation that begins with the first payment. When the sale value or stamp duty value is ₹50 lakh or more, the buyer must deduct tax at source and report it through Form 26QB. This requirement directly affects filing your TDS return and determines whether the transaction stays compliant.

Form 26QB determines whether TDS on the property purchase is deducted on time, reported correctly, and reflected in the seller’s tax records. The timing of payments, the structure of the deal, and even instalments paid before registration can trigger this filing. A small oversight can lead to interest, late fees, and penalty notices, while correct compliance keeps the transaction smooth from a tax standpoint.

This guide explains what is Form 26QB, when it applies, how it works in practice, and the legal points buyers must understand before releasing payments.

What is Form 26QB in TDS and Why it Exists

Form 26QB is an online statement-cum-challan used by property buyers to deposit TDS and report the transaction in a single step.

Under Section 194-IA of the Income Tax Act, the buyer must deduct 1 percent TDS if the sale consideration or stamp duty value is ₹50 lakh or more, whichever is higher. This applies even to individual buyers purchasing a single residential property.

The obligation arises at the time of payment or credit to the seller, whichever is earlier. As a result, booking amounts, advances, and instalment payments can trigger Form 26QB filing even before registration.

The law places this responsibility on the buyer to ensure early tax reporting in high-value property deals. Once filed, the TDS reflects in the seller’s Form 26AS, creating a clear audit trail. 

Key points to remember

• TDS rate is 1 percent on the full property value
• The buyer is responsible for deduction and payment
• No TAN is required. PAN is sufficient
• Filing is done online through the Income Tax portal

This is how Form 26QB for TDS on property purchase fits into real transactions, especially where payments are made in stages.

Form 26AS plays an important role in tracking TDS credits during return filing. You can read our detailed guide here to understand how it works: What is Form 26AS

When Does Form 26QB Apply?

Form 26QB applies at the stage where a property purchase legally triggers TDS under the Income Tax Act, and the buyer must assess this before releasing any payment to the seller.

You must file Form 26QB if all of the following conditions are met:

• You are purchasing immovable property
• The sale value or stamp duty value is ₹50 lakh or more
• The property is not rural agricultural land

In case of joint buyers or joint sellers, Form 26QB must be filed separately for each buyer–seller combination, based on their respective share of consideration.

If the purchase is funded through a home loan, the buyer remains responsible for TDS compliance, even when payments are released directly by the bank to the seller.

Urban agricultural land still falls within the scope.

Example for clarity

If you buy a property for ₹90 lakh, TDS is deducted on ₹90 lakh, not on ₹40 lakh. This rule often catches first-time buyers off guard, especially when the sale agreement mentions staggered payments.

Understanding TDS on property Form 26QB before making any payment helps avoid last-minute compliance issues.

Key Legal Points Buyers Often Miss in Form 26QB

These points deserve special attention:

• If payment is made in instalments, TDS must be deducted on each instalment proportionately
• Form 26QB must be filed seller-wise. If there are two sellers, two separate forms are required
• If multiple transactions with the same seller cross ₹50 lakh during the year, TDS applies even if each agreement is below the threshold
• No TDS applies to rural agricultural land, but proper land classification records should be retained

These details explain why understanding TDS on purchase of immovable property Form 26QB is not optional.

What Information Does Form 26QB Require?

Before starting 26QB online filing, keep the following details ready:

• PAN of buyer and seller
• Full name and address of both parties
• Date of sale agreement
• Total sale consideration and payment amount
• TDS amount deducted
• Date of TDS payment

Accuracy matters. PAN mismatches or incorrect dates can delay credit to the seller and trigger notices.

Due Date for Filing Form 26QB

Form 26QB must be filed within 30 days from the end of the month in which payment is made or credited, whichever is earlier.

For example, if a property is purchased on 15 December 2025, the form must be filed by 30 January 2026.

Delays attract fees, interest, or penalties depending on the nature of the default.

Reason	Consequence
Delay in filing Form 26QB	₹200 per day under Section 234E, capped at the TDS amount
TDS deducted but not paid	Interest at 1.5 percent per month
TDS not deducted	Interest at 1 percent per month
Failure to file the statement	Penalty from ₹10,000 to ₹1 lakh under Section 271H

The penalty under Section 271H may be waived if the buyer pays the TDS, applicable interest, and late fee and files Form 26QB within one year from the due date. Beyond this period, relief is rarely granted.

Early compliance helps limit cost and scrutiny.

Step-by-Step Procedure to File Form 26QB

Once TDS is deducted on a property transaction, Form 26QB must be filed online to deposit the tax and formally report the purchase to the Income Tax Department.

Filing Form 26QB is fully online.

Step 1

Log in to the Income Tax portal using your PAN.

Step 2

Go to E-File and select e-Pay Tax.

Under “New Payment,” choose 26QB (TDS on sale of property).

Step 3

Enter details under three sections:

• Buyer details
• Seller details
• Property and tax payment details

Step 4

Choose the payment option. You can proceed with Pay Now or select Pay Later.

Step 5

Complete the payment through net banking.

Step 6

Download the acknowledgement for your records. The acknowledgement number is required for tracking and any future corrections.

After Form 26QB is processed, the buyer can download Form 16B from the TRACES portal and issue it to the seller within 15 days from the due date.

For a step-by-step walkthrough of the filing process, including common errors to avoid, you can refer to our detailed guide on How to File Form 26QB Online.  

What Is the Password for Form 26QB?

When you download Form 26QB acknowledgements or challans from the Income Tax portal, the PDF is password-protected.

The password is created using:

• The buyer’s PAN in uppercase
• The buyer’s date of birth or date of incorporation in DDMMYYYY format

This standard format applies to Form 26QB PDFs downloaded from the portal and helps keep transaction details secure.

Authorized Banks for Form 26QB Payment

TDS payment for property transactions under NSDL TDS on sale of property can be made through several authorised banks via net banking.

Commonly used banks include:

• State Bank of India
• HDFC Bank
• ICICI Bank
• Axis Bank
• Bank of Baroda
• Punjab National Bank
• Kotak Mahindra Bank
• Union Bank of India

Most major banks support smooth online payments for TDS Form 26QB, allowing buyers to complete the process without visiting a branch.

How to Download Form 26QB

If you need a copy of Form 26QB after filing, such as for records, loan processing, or responding to a notice, it can be downloaded from the Income Tax portal.

Log in to your account and go to E-File > e-Pay Tax > Payment History. Select TDS on Sale of Property (800) and download the challan or acknowledgement from the action menu.

This document acts as proof that TDS was deposited and reported correctly.

Conclusion

Form 26QB is not optional paperwork. It is a statutory requirement linked directly to property transactions. Buyers often focus on loans, registration, and possession, while this compliance step is overlooked. That is when interest and penalties begin to add up. If you want TDS return filing handled correctly without tracking portals and deadlines, professional assistance can help. At LegalWiz.in, we support buyers with Form 26QB filing, TDS on property compliance, and related reporting, so ownership remains clear and penalty exposure stays low.