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FAQ on selling of property & filling of form 26QB & 16B

FAQ on selling of property & application of  form 26QB & Form16B :

Here we answered a few of the commonly asked questions about Form 26QB:

Q How to Download 26QB Form?

A. If you are wondering how to pay and access the form through Challan 26QB then here are the steps you need to follow:

  • Go to the TIN NSDL website and click on the link “e-payment: Pay Tax Online” located under the homepage’s “Services” tab.
  • On the next tab, click on Form 26QB (Online Form for Property Furnishing TDS) under the TDS on Property Sale menu:
  • Fill out the appropriate details

Download process: Form 26QB

  • When the payment has been made, the purchaser will have to wait a few days for the information to be reflected on the TRACES website. Registered users will be able to receive either Form 16B or Form 26QB, accepted in Form 26AS.
  • If the payment has been recorded in Form 26AS, the payment made on the sale of the property against TDS is reflected in Part F of Form 26AS under ‘Details of Tax Deducted at Source on      Sale of Immovable Property under section 194(IA).
  • This will display information such as the   TDS certificate number, name of the deductee, PAN of the deductee, total transaction amount, booking status, date of transaction, TDS deposited, acknowledgment number, deposit date, and booking date.
  • Now click on the ‘Downloads’ tab to go to the TRACES website. Click on ‘requested files’ in the drop-down line. If an application is not submitted the user will be asked to submit a download request.
  • Enter the nine-digit acknowledgment number reflected on Form 26AS Part F. After doing so, the user may display the application status.
  • The application will be processed in a few hours, and the user can access Form 16B by entering the number of the submission. To receive Form 26QB a similar procedure must be followed.

Q What type of form 26QB and form16B are?

A. Form 26QB is a return cum challan which is used for payment of TDS to the government of India. Form 16B is a TDS certificate issued to deduct TDS by the buyer to the seller.

Q What is the depositing procedure of TDS?

A. following List of the process for filing TDS is as follows

  • Calculate 1 Percent of TDS on the overall consideration for sales. The seller will be paying Rs.59,40,000 after TDS for a property being sold for Rs. 60 lakhs.
  • Make the payment online on Form 26QB. It creates a challan. Notice that this has to be completed within 7 days from the end of the month TDS is deducted in.
  • The payment is reflected within 7 days on Form 26AS of the seller under Part F heading.
  • Buyer will then be allowed to provide the seller with a TDS certificate called Form 16B. This is available for free on the TRACES website.
  • To do this, register with your PAN and challan number on the TRACES web site.

Payment By Challan 26QB (Online & Offline) : To make your payment through Challan 26QB, here’s what you need to do:

  • Stage-1-Go to.tin.egov-nsdl.com / e-tax new / tds non tds.jsp services online.
  • Stage-2Click Form 26QB.
  • Stage-3- If you are a corporate taxpayer pick 0020. Others could just press 0021.

To fill Form 26QB, select one of the options given:

      • (0020) Corporation Tax (Companies)
      • (0021)-Income tax (other than corporations)
      • Assessment Year and financial year
      • TDS deductor address and
      • Information on Property
      • After that, pick the Payment Mode
      • Payment of e-tax (via net banking facility) immediately
      • The Payment of e-tax by subsequent date (payment by bank branch at a later date

Step-4 – Fill up the empty blanks and click on Proceed.

         Stage-5 Filled up empty blanks and press Continue.

If you prefer the net banking option then you will use your Internet banking credentials to log in to your account and make the payment. You can access Form 26QB when payment is completed.

However, if you choose the “Pat Later” option then a unique Acknowledgement Number will produce with Form 26QB for you. To make the payment, you need to print it out and take the form to your bank branch. You need to make the TDS payment using Form 26QB within 10 days of producing this form.

The taxpayer can log in to the TRACES website after completing the TDS payment and verifying that the payment is reflected in Form 26AS, and download Form 26AS from the Downloads menu after providing the relevant information.

A confirmation screen appears. The two options are given to user-” Print Form 26QB “and” Send to Bank. It also shows a specific acknowledgment number. Keep a record for future use of that acknowledgment amount. To take a copy of the document click “Print Form 26QB.”

Mode of Payment

  • You may make the Taxation payment instantly, i.e. via net-bank or by visiting one of the bank branches on a subsequent date.
  • If the payment is made online, a print of the Challan 280 marked on 800 may be taken. If the payment is made at a branch, an e-receipt for Form 26QB will be generated along with a unique acknowledgment number.
  • This has to be submitted with the cash or cheque to each of the approved lenders. The institution must generate the Challan until the tax sum is paid to the bank.

For the payment here is the list of some Authorised bank

  • HDFC Bank
  • Central Bank of India
  • Indian Overseas Bank
  • Jammu & Kashmir Bank
  • Axis Bank
  • Bank of Baroda
  • Corporation Bank
  • Andhra Bank
  • ICICI Bank
  • Dena Bank
  • IDBI Bank
  • Bank of India
  • Indian Bank
  • Bank of Maharashtra
  • Canara Bank
  • Syndicate Bank
  • Oriental Bank of Commerce
  • United Bank of India
  • Vijaya Bank
  • Punjab and Sind Bank
  • State Bank of India
  • Punjab National Bank
  • Allahabad Bank
  • UCO Bank
  • Union Bank of India

Q What are different Methods for Income Tax/  TDS  / TCS Payment?

Following Different methods for Income Tax/  TDS / TCS Payment Via

  • Net Banking
  • Debit Card
  • Pay at Counter
  • NEFT/RTGS
  • Payment Gateway

Tax payment methods has gone to drastic changes

Q How does this appear on the seller’s sales tax return?

A. Capital gains from property sales along with the TDS details found in Form 26AS would have to be recorded in the seller’s income tax return.

Q What is the Process for issuing form 16?

Ans Process for issuing form 16 are as under : 

  1. After 5 days, proceed to the TRACES portal (www.tdscpc.gov.in) to download Form 16B.
  2. Steps to get Form 16B downloaded:
  • Register & sign in as a taxpayer using your PAN on the TRACES portal (www.tdscpc.gov.in)
  • Under the “Downloads” tab, pick “Form 16B (For Buyer).”
  • Enter the property transaction information for which you must submit Form 16B. Enter the Seller’s Assessment Year, Acknowledgement Number, PAN, and press “Continue”
  • A screen appears for confirmation. To continue, click on “Submit Application.”
  • Message of completion should appear on the submission of a download request. To check for the download request please note the request number.
  • To download the requested files, click on “Requested Downloads.”
  • Request check with the request number. Select the row of requests and click on the “download HTTP” button.

Q How can I deduct TDS if I don’t have TAN?

A. To deduct TDS, the buyer need not have a Tax Collection and Deduction Account Number (TAN). Additionally, both the buyer and the seller need to provide their PAN for the transaction like TDS deduction.

Q. I had forgotten to subtract TDS when I bought a house. Now, what will I do?

A. Non-deduction of TDS on the remaining TDS balance faces a penalty value of 1 percent. To set the account straight you need to act and pay the penalty as soon as possible. Be sure to forward the TDS to the government and file the return of TDS within the specified period, as well as avoid certain penalties.

Q Is deduct TDS is required for purchasing agricultural land?

A. No. As per Section 194-IA, If you are purchasing agricultural land, you do not need to deduct TDS for the transaction

Q. Is the Deduction of TDS is Compulsory if I am Purchasing Agricultural Land?

A. No, As per section 194-IA there is no need to deduct TDS if you are Purchasing Agricultural Land.  Agricultural Land is an area  within the jurisdiction of Municipality or Cantonment Board which has a population of not less than 10,000 or It is Area in any area within below given distance measured are as under:

The population of the Municipality Distance from Municipal limit or Cantonment Board
More than 10,000 but does not exceed 1,00,000 Within 2 km
More than 1,00,000 but does not exceed 10,00,000 Within 6 km
Exceeding 10,00,000 Within 8 km

Q. How to make payment of TDS by using Form 26QB?

A. By using Form 26 QB, you can avail of any of the options for remit TDS to the government Choose the E-tax payment option on the TIN NSDL webpage and payment online with net banking. Generate Form 26QB with a unique acknowledgment number, and use this form to visit your bank to pay. Form 26QB with acknowledgment number is 10 days valid.

Q. What penalties do Form 26QB enforce for non-compliance with the above TDS provision?

A. Penalties relating to Form 26QB of Section 194-IA

It is important to remember here that failure to deduct TDS, issue Form 16B or failure to file Form 26QB attracts attention and penalty. The penalties which apply are as follows:

Condition Penalty
Non-deduction of TDS The interest of 1% on the amount not deducted for TDS
Non-remittance of TDS to the government The penalty of 1.5 percent of the sum deducted each month
Delay in filing of TDS returns The penalty of 200 Rs per day for the default day

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