26QB TDS refers to the Tax Deducted at Source (TDS) on property purchase, filed using Form 26QB. The buyer deducts 1% of the higher of sale price or stamp duty value and deposits it with the government. The seller receives credit for this in their income tax return through Form 26AS.

The buyer of the property files Form 26QB not the seller. The buyer deducts 1% from the payment made to the seller and deposits it with the income tax department using this form. If there are multiple buyers (joint purchase), each buyer files a separate Form 26QB for their respective share.

What is the due date for Form 26QB?

Form 26QB must be filed within 30 days from the end of the month in which TDS was deducted. For example, if TDS is deducted in November, the due date is December 31. For March deductions, the due date is April 30. Late filing attracts ₹200 per day as penalty under Section 234E.

What is Form 26QB for NRI?

Form 26QB under Section 194-IA does NOT apply when the seller is an NRI. When buying from an NRI, the buyer must deduct TDS under Section 195 at rates of 2030% on the entire sale value and file Form 27Q. The NRI seller can apply for a Lower Deduction Certificate to reduce the TDS rate to actual tax liability.

How do I pay 26QB challan online?

Log in to incometax.gov.in - e-File - e-Pay Tax - New Payment - Select 26QB (TDS on property) Fill buyer/seller details and property information - Choose Pay Now - Complete payment via net banking or debit card. Download the acknowledgement immediately after payment.

What is the penalty for not filing Form 26QB?

₹200 per day late fee from the due date until actual filing (Section 234E), plus interest at 1.5% per month on the TDS amount from the deduction date. If TDS is not deducted at all, the buyer faces penalties equal to the TDS amount plus interest. If the seller's PAN is missing, the TDS rate automatically increases to 20%.

Form 16B is the TDS certificate that the buyer generates from the TRACES portal (traces.gov.in) and gives to the seller after depositing TDS via Form 26QB. It proves that the TDS has been deposited and allows the seller to claim credit in their income tax return. It must be issued within 15 days of the TDS deposit due date.

Can Form 26QB be revised?

Yes, errors in Form 26QB can be corrected on the TRACES portal. Details like amount, address, and date can be updated online with OTP and seller's approval. However, errors in seller's PAN can only be corrected by the Assessing Officer. Always verify all details before submission to avoid the correction process.

Knowledge

What Is Form 26QB in Income Tax? TDS on Property Purchase

Q: What is Form 26QB in income tax?

Form 26QB is a challan-cum-statement filed by property buyers under Section 194-IA to deposit 1% TDS on purchase of immovable property worth ₹50 lakh or more. Filed on incometax.gov.in, it is mandatory for all such transactions. From April 1, 2026, it has been renamed Form 141 under the Income Tax Act, 2025.

Chandra Sekar PandaUpdated on: August 1, 2026

What Is Form 26QB in Income Tax? TDS on Property Purchase

Understand Form 26QB what it is, who files it, TDS rate, due date, penalties, how to fill it, Form 16B, and the new Form 141 under Income Tax Act 2025.

Quick Summary: (TL; DR)

Form 26QB is the challan-cum-statement filed by a property buyer to deposit TDS (Tax Deducted at Source) on the purchase of immovable property worth ₹50 lakh or more, under Section 194-IA of the Income Tax Act, 1961. TDS rate: 1% of the higher of sale price or stamp duty value. Deadline: within 30 days from the end of the month in which TDS was deducted. After filing, the buyer downloads Form 16B from TRACES (traces.gov.in) and gives it to the seller within 15 days. Important 2026 update: Form 26QB has been renumbered as Form 141 under the new Income Tax Act, 2025, effective April 1, 2026. For transactions up to March 31, 2026, Form 26QB under the old Act applies. From April 1, 2026 onwards, file Form 141 on the income tax portal.

What Is Form 26QB in Income Tax?

Form 26QB is a combined payment and return form. When you buy a property like land, flat, house or commercial space for ₹50 lakh or more in India you need to file this form.

Here is what you need to do:

Deduct 1% TDS from the payment you make to the seller.
This is as per Section 194-IA of the Income Tax Act, 1961.
File Form 26QB to deposit this TDS with the government.
Give Form 16B, which's a TDS certificate to the seller within 15 days.
Form 26QB is not, like a return. It combines two things: the TDS payment challan and the return Statement. You do not need a TAN to fill out this form. Your PAN is enough.

Who Files Form 26QB and Who Is It For?

Party	Role
Buyer (Deductor)	Files Form 26QB and deposits 1% TDS to the government
Seller (Deductee)	Receives Form 16B from buyer as proof of TDS deposit
Government	Receives 1% of the property value as advance tax from the transaction

The buyer's responsibility is complete and non-delegable. Even if the seller is well-known, trustworthy, or the transaction is between family members if the property value crosses ₹50 lakh, the buyer must file Form 26QB. Failure makes the buyer an "assessee in default" with interest liability.

When Does Form 26QB Apply?

Scenario	Form 26QB Applicable?
Flat purchase in Bengaluru for ₹75 lakh	Yes 1% of ₹75 lakh = ₹75,000 TDS
Plot purchase in rural Karnataka for ₹45 lakh	No below ₹50 lakh threshold
Agricultural land purchase (rural)	No agricultural land exempt
Urban agricultural land (converted)	Yes treated as urban property
Under-construction flat, payment in instalments	Yes TDS on each instalment proportionately
Buying from an NRI seller	No Section 195 applies instead (different, higher TDS rates)
Two joint buyers for ₹1 crore flat (equal shares)	Yes each buyer files separate Form 26QB for their ₹50 lakh share

Critical rule from October 2024: You must deduct TDS on the amount between the sale consideration and the stamp duty value.
For example if you buy a property for seventy lakh rupees but the stamp duty value is eighty lakh rupees you have to deduct TDS.
TDS is one percent of eighty lakh rupees which equals eighty thousand rupees.
The sale consideration is seventy lakh rupees. Tds is, on eighty lakh rupees.

Need Help with Form 26 or 141? Talk to Vault Lawyer and CA to get Legal Clarity and Guidance.

How to Fill and File Form 26QB Online Step by Step

Step 1: Go to incometax.gov.in - Log in with your PAN

Step 2: Navigate to e-File - e-Pay Tax - New Payment

Step 3: Select "26QB (TDS on sale of property)" - Click Proceed

Step 4: Fill in the three pages:

Page	Details Required
Page 1 Buyer Details	Full name, PAN, Aadhaar, address, mobile, email
Page 2 Seller Details	Full name, PAN (mandatory missing PAN = TDS jumps to 20%), address
Page 3 Property Details	Full property address, type (residential/commercial), date of agreement/registration, sale consideration amount, stamp duty value, TDS amount

Step 5: Review all details carefully errors in PAN, property value, or dates cause mismatch notices later

Step 6: Select payment mode Pay Now (net banking, debit card, UPI, RTGS/NEFT) or Pay Later

Step 7: Complete payment - Acknowledgement number generated Download and save the challan receipt

Step 8: After 1015 days, log in to traces.gov.in - Select Form 16B Enter seller's PAN and acknowledgement number - Submit request

Step 9: Download Form 16B and give it to the seller within 15 days of the TDS deposit due date

Form 26QB Calculation With Examples

Formula: TDS = 1% × (Higher of Sale Price or Stamp Duty / Guidance Value)

Example	Sale Price	Guidance Value	TDS Basis	TDS Amount
Flat, Koramangala	₹80 lakh	₹78 lakh	₹80 lakh	₹80,000
Plot, Whitefield	₹65 lakh	₹72 lakh	₹72 lakh	₹72,000
₹1 crore flat, 2 joint buyers	₹50 lakh each share	₹52 lakh each	₹52 lakh each	₹52,000 each (2 separate forms)
Instalment: advance ₹15L on ₹80L flat	₹15 lakh		₹15 lakh	₹15,000

Common mistake people make is calculating TDS on the amount that is more than ₹50 lakh. This is incorrect. TDS applies to the sale value of the property not just the extra amount.

For example if a property costs ₹60 lakh then TDS is 1% of ₹60 lakh, which equals ₹60,000. It is not 1% of ₹10 lakh, which's the amount exceeding ₹50 lakh.TDS is calculated on the sale value so, in this case it is ₹60 lakh.

Need Help with Form 26 or 141? Talk to Vault Lawyer and CA to get Legal Clarity and Guidance.

Due Date for Filing Form 26QB

TDS must be deposited within 30 days from the end of the month in which TDS was deducted from the seller's payment.

TDS Deduction Date	Due Date for Form 26QB
November 15	December 31
December 30	January 31
March 20	April 30, 2026
Any date in April 2026	May 31, 2026

Note from the Income Tax Department: The due date to deposit the TDS that was deducted in March 2026 is April 30 2026.If you miss this date you will have to pay interest. The interest rate is 1.5 percent, per month. It starts from the date you deducted the TDS. You should deposit the TDS on time to avoid paying interest. The Income Tax Department sends you this note to remind you about the TDS deposit. The TDS deduction date is important to calculate the interest. The interest will add up every month if you delay the Deposit. So make sure to deposit the TDS by April 30 2026.

Penalties for Late or Non-Filing of Form 26QB

Default	Penalty / Interest
Late filing (beyond due date)	₹200 per day under Section 234E until filing
Late deduction	Interest at 1% per month from date payment was due
Late deposit	Interest at 1.5% per month from date of deduction
TDS not deducted at all	Buyer becomes "assessee in default" full TDS + interest + possible penalty
Wrong PAN of seller	Seller cannot claim credit; buyer faces notice
Seller's PAN absent	TDS rate jumps to 20% instead of 1%

Need Help with Form 26 or 141? Talk to Vault Lawyer and CA to get Legal Clarity and Guidance.

What Is the New Form 141? 2026 Update

Under the Income Tax Act, 2025 (effective April 1, 2026), Form 26QB has been consolidated and renumbered as Form 141.

Aspect	Form 26QB (old)	Form 141 (new, from April 2026)
Applicable law	Income Tax Act, 1961	Income Tax Act, 2025
Section	Section 194-IA	Section 393(1)
Applicable from	Transactions up to March 31, 2026	Transactions from April 1, 2026
Filing portal	incometax.gov.in	incometax.gov.in (same portal)
TDS rate	1%	1% (unchanged)
Threshold	₹50 lakh	₹50 lakh (unchanged)

Practical impact: For any property transaction where payment was made before March 31, 2026, file Form 26QB. For payments from April 1, 2026 onwards, file Form 141. The TDS rate, threshold, and basic process remain the same only the form number and governing Act change.

Conclusion

Form 26QB is one of the most overlooked compliance requirements in Indian property transactions but the penalties for getting it wrong are real and immediate. Deduct 1% TDS on the higher of sale price or guidance value, file on incometax.gov.in within 30 days of the month of deduction, issue Form 16B to the seller within 15 days, and verify all PAN details before submission. From April 1, 2026, the form is renamed Form 141 under the Income Tax Act, 2025 but the rate, threshold, and process remain identical. If you are buying a property above ₹50 lakh in India, Form 26QB compliance is not optional and missing it costs more to fix than getting it right the first time.

Need Help with Form 26 or 141? Talk to Vault Lawyer and CA to get Legal Clarity and Guidance.