Form 26QB Explained: 1% TDS on Property Purchase, Due Date, How to File and Form 16B (FY 2025-26)
Form 26QB is the challan-cum-statement a buyer files to deposit 1% TDS under section 194-IA when buying immovable property (other than rural agricultural land) for ₹50 lakh or more, or where the stamp duty value is ₹50 lakh or more. It is due within 30 days from the end of the month in which the payment was made, needs no TAN, and is filed once per buyer-seller pair for each instalment. The buyer then downloads Form 16B from TRACES and gives it to the seller.
Key facts, FY 2025-26
- Legal basis
- Section 194-IA, Rules 30, 31 and 31A
- Applies when
- Consideration or stamp duty value is ₹50 lakh or more, aggregated across all buyers and sellers; rural agricultural land excluded
- Rate
- 1% of the higher of consideration and stamp duty value; 20% if the seller has no PAN
- Due date
- Within 30 days from the end of the month in which TDS is deducted (payment or credit)
- Filed on
- e-filing portal, e-Pay Tax, 26QB; buyer's PAN, no TAN required
- Certificate
- Form 16B to the seller, downloaded from TRACES within 15 days of the 26QB due date
What it is
Section 194-IA makes the buyer of a house, flat, plot or commercial property responsible for deducting 1% tax from the seller when the deal is worth ₹50 lakh or more. Form 26QB is the combined challan and TDS return through which that 1% is deposited and reported. Because it is a one-off obligation, individual buyers file it with their PAN and do not need a TAN.
The threshold is tested on the whole transaction. Since 1 October 2024 the law states expressly that where there are several buyers or sellers, the consideration is the total paid by all buyers to all sellers. Two buyers paying ₹40 lakh each for an ₹80 lakh flat must each deduct TDS on their share, even though no single share crosses ₹50 lakh.
TDS is deducted at the time of each payment, including the booking amount and construction-linked instalments, and on the stamp duty value if that is higher than the price. GST on an under-construction flat is excluded from the consideration for TDS.
How many Form 26QBs, and when
| Situation | Forms to file | Notes |
|---|---|---|
| One buyer, one seller, single payment | 1 | Due within 30 days from the end of the payment month |
| One buyer, one seller, three instalments | 3 | One per instalment, each with its own due date |
| Two buyers, one seller, single payment | 2 | Each buyer files for their share, seller PAN the same |
| Two buyers, two sellers, two instalments | 8 | One per buyer-seller pair per instalment |
| Seller is a non-resident | 0 (use 27Q) | Section 195 applies: buyer needs a TAN, deducts at the capital gains rate plus surcharge and cess, and files Form 27Q quarterly |
| Rural agricultural land | 0 | Outside section 194-IA |
| Seller without PAN | As above | Deduct at 20% under section 206AA |
How to file Form 26QB
- Log in to the e-filing portal, go to e-File, then e-Pay Tax, click New Payment and choose 26QB (TDS on Sale of Property).
- Fill the buyer details (PAN, address, email, mobile), then the seller details (PAN, address). For joint parties, tick the option and file a separate form for each pair.
- Enter the property details: type, address, agreement date, total consideration, stamp duty value, whether the payment is lump sum or instalment, the amount paid now and the date of payment.
- The portal computes 1% TDS. Add interest or late fee if you are filing after the due date.
- Pay through net banking, debit card, RTGS or NEFT, or at a bank counter. Save the challan with the acknowledgement number.
- After 3 to 5 working days, register on TRACES as a taxpayer with your PAN, go to Downloads, then Form 16B, enter the acknowledgement number and seller PAN, and download the certificate.
- Give the signed Form 16B to the seller within 15 days of the 26QB due date. The seller sees the TDS in Form 26AS and claims it in their ITR.
Worked example: Flat for ₹80 lakh, two buyers, one seller, two instalments
- Agreement value (stamp duty value ₹78 lakh, so price is higher)
- ₹80,00,000
- Instalment 1 paid 10 August 2025, split equally
- ₹15,00,000 by each buyer
- TDS by each buyer on instalment 1
- ₹15,000 (due 30 September 2025)
- Instalment 2 paid 5 January 2026 on registration
- ₹25,00,000 by each buyer
- TDS by each buyer on instalment 2
- ₹25,000 (due 2 March 2026)
- Forms 26QB in total
- 4, and 4 Forms 16B to the seller
Common mistake: paying the builder in full and filing 26QB months later
Late filing costs ₹200 a day under section 234E, capped at the TDS amount, plus interest of 1% a month for late deduction and 1.5% a month for late deposit, counted from the date of payment. A buyer who paid ₹60 lakh in June 2025 and files in September 2026 owes the ₹60,000 TDS plus a ₹60,000 late fee plus interest, and the seller cannot claim the credit until it is done. Deduct at every payment, not just at registration.
What to do next
Collect the seller's PAN and check it on the portal before the first payment. File 26QB for each instalment within 30 days of the month end, download Form 16B and hand it over. Keep the challans with the sale deed; the sub-registrar reports the transaction to AIS and the department matches it against 26QB filings. If you filed with a wrong PAN, amount or assessment year, request a correction on TRACES; the seller may need to approve it.
Form 26QB: questions
When is TDS on property purchase applicable?
When you buy immovable property other than rural agricultural land for ₹50 lakh or more, or where the stamp duty value is ₹50 lakh or more, from a resident seller. The buyer deducts 1% under section 194-IA on each payment and files Form 26QB. The threshold is tested on the total consideration paid by all buyers to all sellers.
What is the due date for Form 26QB?
Within 30 days from the end of the month in which the payment was made or TDS was deducted. For a payment on 5 January 2026 the form is due by 2 March 2026. Each instalment has its own due date.
Do I need a TAN to file Form 26QB?
No. Form 26QB is filed with the buyer's PAN. A TAN is required only when the seller is a non-resident, because that deduction falls under section 195 and is reported in Form 27Q.
How do I download Form 16B?
Register on TRACES as a taxpayer using your PAN, wait for the 26QB to be processed (about 3 to 5 working days), then go to Downloads, Form 16B, enter the acknowledgement number, the seller PAN and the assessment year, and download the file. Sign it and give it to the seller within 15 days of the 26QB due date.
What if there are two buyers or two sellers?
File one Form 26QB for each buyer-seller combination, showing that buyer's share of the payment to that seller. Two buyers and two sellers means four forms for each instalment. The ₹50 lakh threshold applies to the total deal, not to each share.
What is the penalty for late filing of Form 26QB?
A late filing fee of ₹200 a day under section 234E, limited to the TDS amount, plus interest at 1% a month for late deduction and 1.5% a month for late deposit. A separate penalty of ₹10,000 to ₹1,00,000 under section 271H can apply if the statement is more than a year late.
Is TDS deducted on the stamp duty value or the sale price?
On whichever is higher. If the agreement value is ₹55 lakh but the stamp duty value is ₹62 lakh, TDS is 1% of ₹62 lakh. The threshold test also uses the higher figure.
What if the seller is an NRI?
Form 26QB does not apply. Under section 195 the buyer must get a TAN, deduct TDS on the full sale price at the long-term or short-term capital gains rate plus surcharge and cess (unless the seller obtains a lower deduction certificate under section 197), deposit it by the 7th of the next month and file Form 27Q for the quarter.
Related forms and sections
- Section 54Section 54 exempts long-term capital gains from the sale of a residential house if you buy another residential house in India within 1 year before or 2 years after the sale, or construct one within 3 years. The exemption is the lower of the gain and the cost of the new house, capped at ₹10 crore. Unused gain must be parked in a Capital Gains Account Scheme deposit before the return due date. Section 54F does the same for other assets but requires the full net sale consideration to be reinvested, and section 54EC allows up to ₹50 lakh in specified bonds within 6 months.
- Form 26ASForm 26AS is your annual tax statement: every rupee of TDS and TCS credited to your PAN, the advance tax and self-assessment tax you paid, and the refunds issued, for one financial year. You open it from the e-filing portal, which hands you over to TRACES. Before filing ITR for AY 2026-27, the TDS you claim must match what 26AS shows, or the credit is cut in the 143(1) intimation.
- Form 16Form 16 is the TDS certificate an employer issues to every employee whose salary tax was deducted, due by 15 June 2026 for FY 2025-26. Part A is generated on TRACES and shows quarter-wise TDS deposited against your PAN; Part B is the employer's breakup of salary, exemptions, deductions and tax. You use it to fill the salary and TDS schedules of ITR-1 or ITR-2 by 31 July 2026.
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General information for FY 2025-26, not professional advice. Limits and dates change with each Budget; the updated date above is when this page was last checked. Disclaimer