Form 26QB is a challan-cum-return statement for reporting the transactions liable to TDS on Sale of an Immovable Property u/s 194-IA.
Explains TDS on Immovable Property, applicability, threshold limits, rates of TDS, Time of Deduction, requirements to prepare TDS return and filing TDS under Section 194-IA
For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as “Tax Deducted at Source”, commonly known as TDS.
The Finance Act 2013-14 introduced TDS on Payment on transfer of certain immovable property other than agricultural land at the rate of 1% where the consideration for the transfer of an immovable property is Rs.50 Lakhs or above u/s 194-IA.
Note: Sale of Rural Agriculture land does not attract TDS u/s 194IA. Sale of Urban agriculture land attracts TDS u/s 194IA @ 1%
In respect of payments on sale of property:
TDS to be deducted and quarterly TDS return to be filed for every payment made to the seller. Not a consolidated TDS deduction and payment.
In case of a house loan disbursement through monthly installments, for every installment, one need to deduct and file appropriate TDS retuns.