How to file TDS on sale of property?

When you acquire a property (a house or an individual apartment in a housing building) for more than Rs. 50 lakhs, you are supposed to reduce a certain proportion of tax from your payment to the owner by law. Sections 206AB and 206CCA were added to the Union Budget for 2021. It says that if a taxpayer seems to have a TDS of 50,000 or more within the last two years without submitting a taxable income, the TDS rate would be doubled or 5%. Individuals with yearly revenue of more than 10 crores must deduct a TDS of 0.1 percent on transactions above 50 lakhs, according to Section 194Q.

If you sell private land (other than farmland, a property, or a portion of a building) for more than Rs. 50 lakhs, the buyer must reduce tax at source. Section 194-IA of the IT Act, 1961, covers TDS (tax deducted at source) on property sales. While the buyer is responsible to calculate and pay income tax when purchasing the property, the buyer is also responsible to calculate and pay income tax while purchasing the property. The need for TDS reduction through the buyer at the time of sale is covered by Section 194IA.

The following steps will help you on how to file 26QB form online.

1) Go to

and log in. 

2) Click the continue button on the page -TDS on property (Form 26QB).

3) If you're a business customer, use code 0020, and if you're a non-business customer, use code 0021. Details like payment type, financial year and assessment year will be filled automatically.

4) Fill in all the details like PAN, address, amount of the property and tax amount.

5) After this, you will see the payment page at the end of the page. There are two payment options like instant e-tax payment (with net banking) and e-tax payment on a later date (tax e-payment through branches of a bank).

6) You can pay the amount online with net banking and print or save challan 280 with a mark of 800.

7) If you are unable to process payments online, you will receive an online receipt for Form 26QB with a specific Acknowledgement Number, which is valid for 10 days. Take that receipt to any bank with a cheque and the bank will process your online transaction and create a challan for you.

This process helps you with how to file TDS on sale of property and how to file 26qb form online.

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