TDS on Property (Form 26QB)

TDS on Property in India: Form 26QB Filing Explained (2026 Guide)

Buying a property worth more than ₹50 lakh? The law makes you - the buyer - responsible for deducting 1% TDS and depositing it with Form 26QB, not the seller. Miss it, and you face interest, penalty, and a seller who can't get their Form 16B. This guide explains the rule, the process, and how KanoonPe files your Form 26QB correctly with a flat all-inclusive quote.

Quick summary

• What it is: 1% TDS deducted by a property buyer on the sale consideration, deposited via Form 26QB.
• Governed by: Section 194-IA of the Income Tax Act, 1961.
• Mandatory if: the property (excluding agricultural land) is transferred for ₹50 lakh or more.
• KanoonPe price: Flat, all-inclusive quote on a free callback · Timeline: typically 2–5 working days.

Quick facts

What is TDS on property (Form 26QB)?

TDS on property refers to the tax a buyer must deduct at source when purchasing immovable property (other than agricultural land) valued at ₹50 lakh or more, under Section 194-IA of the Income Tax Act, 1961. The buyer deducts 1% of the sale consideration and deposits it with the government using Form 26QB, a combined challan-cum-statement, instead of a separate TAN-based TDS return.

This obligation falls on the buyer, regardless of whether they are an individual, HUF, or company. After depositing the TDS, the buyer must issue Form 16B to the seller as proof of tax deducted, which the seller uses to claim credit in their income tax return.

Who needs to file Form 26QB?

• Any resident buyer purchasing immovable property valued at ₹50 lakh or above from a resident seller.
• Buyers making instalment payments - TDS applies on each instalment, not just the final payment.
• Joint buyers - each buyer must file 26QB proportionate to their share if the total consideration crosses ₹50 lakh.
• Buyers of under-construction property where payments are made in stages to a builder.
• This does not apply to purchase from non-resident sellers - that falls under Section 195 with different TDS provisions and rates.

Benefits of correctly filing Form 26QB

1. Avoids interest and penalty for late deduction or deposit of TDS.
2. Enables the seller to claim TDS credit in their ITR via Form 16B, keeping the deal smooth and dispute-free.
3. No TAN required - 26QB uses the buyer's PAN, simplifying compliance for individual buyers.
4. Clean paper trail for the property transaction, useful during registration and future resale.
5. Avoids notices from the Income Tax Department for property transactions above ₹50 lakh where TDS wasn't deducted.

Documents required for Form 26QB filing

• PAN of buyer(s) and seller(s)
• Sale agreement / sale deed with the property value and payment schedule
• Property address and details (municipal/registration details)
• Payment details - date of payment/credit, instalment amounts
• Buyer's and seller's contact details (address, email, mobile)
• Bank details for challan payment (net banking or authorised bank branch)

Form 26QB filing process (step by step)

KanoonPe handles the filing and Form 16B download for you; here's what happens.

1. Verify applicability. We confirm the property value crosses ₹50 lakh and TDS is due.
2. Compute TDS. 1% of the sale consideration (or instalment amount) is calculated; a higher rate applies if the seller has no PAN.
3. File Form 26QB online. Submit buyer, seller, property, and payment details on the income tax e-filing portal / TIN-NSDL.
4. Deposit tax. Pay via net banking (e-payment) or generate a challan for payment at an authorised bank, within the 30-day window.
5. Generate acknowledgement. Save the acknowledgement number for the transaction.
6. Download Form 16B. After a few days, register on TRACES and download Form 16B to hand over to the seller.

Ready to get started? Talk to a verified expert → - get a transparent, all-inclusive quote for Form 26QB filing within one business hour.

Form 26QB / TDS on property fees in India

The government levies no filing fee for Form 26QB - you only pay the 1% TDS itself (deposited to the government, not a fee) and any applicable professional charges.

KanoonPe offers a flat, all-inclusive quote - TDS computation, Form 26QB filing, challan payment support, and Form 16B download bundled into one transparent number.

TDS on property timeline

Penalties for late or missed TDS on property

• Late deduction: interest at 1% per month from the date TDS was deductible till the date it's actually deducted.
• Late deposit: interest at 1.5% per month from the date of deduction till the date of deposit.
• Late filing of Form 26QB: fee of ₹200 per day under Section 234E until the statement is filed (capped at the TDS amount).
• Non-deduction/non-deposit: can attract penalty under Section 271H, in addition to interest, and disallowance concerns for the buyer.
• The seller cannot claim TDS credit until Form 26QB is correctly filed and Form 16B issued.

Related TDS obligations for property buyers

Why choose KanoonPe

• Transparent flat pricing - one all-inclusive number, no surprise add-ons.
• Filed-on-time or refund - every order ships with a written SLA.
• One accountable case owner - a single named manager owns your filing.
• Live status tracking - follow your 26QB status and Form 16B availability in real time.

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