Form 26QB: An In-depth Guide of 2025

The sale and purchase of real estate in India have a number of legal and tax implications on the buyer and the seller. One such crucial compliance is Form 26QB, directly related to the deduction and payment of TDS (Tax Deducted at Source) on the sale of immovable property, as per Income Tax rules. In case you are going to buy a property that costs over 50 lakh, it is important to be aware of the Form 26QB, TDS provisions of property transactions in the year 2025, and how to comply.

Form 26QB is an internet based statement-cum-challan that a buyer of property is required to file when he deducts TDS on amounts paid to the seller. This is meant to be a binding process to prevent tax evasion in the real estate sector and the failure to adhere to this can invite penal actions against both the parties.

What is the role of Form 26QB as far as TDS on sale of property is concerned?

Form 26QB is invoked in the Section 194IA of the Income Tax Act, 1961. If you buy any immovable property (land, house, flat, etc.) in India for Rs. 50 lakh or more, the buyer is required to deduct 1 percent TDS on the sale value (with current rates applicable for financial year 2025 26), and deposit that TDS with the government.

The purchaser is to fill in and send Form 26QB electronically within 30 days after the month in which the property transaction occurred. This is because it makes the seller get tax credit and the government monitors all the high value property transactions.

How do I fill the form 26QB online in 2025?

The process of filing Form 26QB is not complicated as long as you have all the documents that you need. The procedure to fill Form 26QB online in 2025 step by step is as follows:

• Go to the official TIN NSDL portal or the new version of Income Tax e-Payment using e-filing.
• Select Form 26QB (TDS on Sale of Property) under TDS on property option.
• Information like PAN of buyer and seller, the details of the property, the sale value, date of agreement, TDS amount, and the mode of payment should be entered.
• Make payment of the TDS online via net banking A receipt of acknowledgment and a number of a challan will be provided.
• Print out and keep the receipt in case of reference in future. You will need the same for Form 16B (TDS certificate for seller).

Banks and payment gateways have become more direct in terms of e-payment integration, with most of the leading names supporting direct integration these days, which makes compliance much easier than in recent years.

A personal story of how to fill in form 26QB in 2025

I have already purchased a property last year and I can say that filling in Form 26QB online is less time-consuming than going to banks or government institutions. The portal interface is more user friendly and there is online support in case of any problem. As a result, when the seller submitted, they received alerts in time and could view TDS credit on their Form 26AS, too.

You didn’t know that, did you?

According to the latest updates of the portal 2025, the submission of Form 26QB and payment of TDS can be now initiated directly through some online property marketplace platforms. This allows buyers and sellers to compare easily the real estate offers and sort the compliance paperwork in a single click.

Other Questions People Ask

Who has the responsibility of deducting and depositing TDS on property transactions?
A: The buyer (transferee) is liable for deducting and depositing the TDS using Form 26QB.

What are the major characteristics of Form 26QB as far as buyers and sellers are concerned?

• Mandatory on high value property: It is compulsory when the value of transaction is Rs. 50 lakhs or above.
• Available to any residential and business real estate: Newly constructed and ready-to-occupy properties.
• Separate transaction based: Each buyer seller combination and each property unit would have a separate form 26QB to be filed.
• PAN is mandatory: The purchaser and the vendor have to present valid PAN. Rejection can be caused by mismatch or wrong entry.
• Time sensitive: Has to be filed within 30 days of the end of the month in which the transaction has been made.
• Digital record: After being filed, challan details will be included in the seller Form 26AS to get TDS credit.

What are the advantages and disadvantages of the use of Form 26QB?

Pros

• It prevents tax evasion by monitoring high value real estate transactions
• Online process is very simple as opposed to traditional paperwork.
• Clear documentation of the two parties so that it can be referred to in the future.
• Prompt recognition implies that seller does not forgo TDS credit in returns.
• Linking Form 26AS, which will make the process of refund or adjustment by sellers much faster.

Cons

• The consequences of non-filing or late filing may be substantial to the buyers.
• Wrong PAN entries can lead to no TDS credit to the seller.
• The lack of awareness still exists, and new buyers are not always aware of the requirements.
• Joint ownership implies that there are different forms and calculations among all the owners.

You didn’t know that, did you?

When it is a joint ownership or there are multiple buyers or sellers, each combination will have to file separate Form 26QB. This may result in more steps but will make the process easier to audit and track.

Other Questions People Ask

What happens in case Form 26QB is not filed within stipulated time?
A: Delay in filing can attract a late fee under Section 234E (Rs. 200 per day), interest on late payment, and penalty under Section 271H.

How to Download Form 16B to Seller after payment of Form 26QB?

When TDS has been paid and form 26QB is filed, the buyer is supposed to give the seller a TDS certificate. This is made by the use of Form 16B:

• In the TRACES portal, as a tax payer
• Go to the section of Downloads and choose Form 16B.
• Provide appropriate information like the acknowledgment number and PANs of buyer and seller.
• You can download digitally signed Form 16B and give it to the seller in hard or soft copy.

Online services, particularly those that provide end to end services can assist the two parties in doing this in a short duration of time.

Expert Insight

The increased utilisation of online marketplaces not only makes property searches easier, but also now allows compliance forms such as 26QB and 16B to be integrated and reduces paperwork and manual errors by the user.

Other Questions People Ask

Is it possible to pay TDS in installments using Form 26QB?
TDS has to be paid on amount credited or paid, whichever is earlier. Therefore, Form 26QB should be submitted, in case of payments by installments, each time.

What are the major dissimilarities between form 26QB and other TDS forms?

Buyers are easily confused when it comes to various pieces of compliance in relation to the property. In simplifying it, the following is a comparison:

This table indicates the necessity of Form 26QB in case of purchase of property and uses of other forms in case of rent or subsequent certificate.

The First Hand Experience: What are the errors that one makes when filing Form 26QB?

The greatest errors, as I have found, are:

• Making a mistake in PAN of buyer or seller
• Multiple buyers or property units can be used on the same form
• Failure to pay the fees and failure to meet the deadline
• Failure to provide Form 16B and give it to the seller, which results in the issue of claiming TDS.

Seeking the assistance of a professional or the use of end-to-end sites online can help a great deal in eliminating such mishaps, particularly among first time buyers.

What will be required to fill out Form 26QB in 2025?

Presentation of the right documents will make filing easy The following is the common checklist:

• Sale Agreement of Property
• PAN card of Buyer and Seller (must match property documents)
• Bank details to make online payment
• The full address of the property with Pin code
• Price and time of payment
• Mobile number and email

The online marketplaces now have the facility of document upload and verification, which can help further in proper entry.

You didn’t know that, did you?

According to new notifications in 2025, both parties need to validate their PAN with Aadhaar to be able to file Form 26QB and minimize the risk of errors or identity theft.

Frequently Asked Questions on Form

Whether Form 26QB applies to NRIs who are buying or selling property in India?
For Non Resident Indian (NRI) sellers, TDS is higher (20 percent or more, not just 1 percent), but the form used for payment is still Form 26QB for resident buyers. Nevertheless, compliance and documentation are more demanding, and one should either consult a specialist or use an all-in-one online service.

Can there be more than one buyer or seller that needs to file a Form 26QB?
Yes, in the case of each buyer seller combination, Form 26QB has to be filed. e.g. in the case of two buyers and two sellers, four forms are required to be filled in viz one each between buyer 1, buyer 2, seller 1, seller 2.

Once the form 26QB has been submitted can it be corrected?
Correction can be done, but on a limited number of fields, and that is the address, email, and contact number, through the TDSCPC portal. PAN, amount and other main transaction details are normally not changeable and thus accuracy at the time of filing is essential.

In short, TL;DR

• Form 26QB is a compulsory form that one has to fill when purchasing any property in India that is worth Rs. 50 lakh and above.
• Buyer will deduct 1 percent TDS and pay to government within 30 days of transaction using form 26QB.
• Both the buyer and seller need valid PAN and Aadhaar validation.
• Use online or TIN NSDL portal to file in fast and accurate manner.
• Always issue the sellers Form 16B to claim TDS credit.
• In the case of joint ownership, or multiple buyers sellers, each combination should be on a separate Form.
• Penalties are high when there are mistakes and late filing.

Some of the questions people ask are: FAQ

What is form 26QB in real estate?
Form 26QB is an official online form to deposit TDS withheld by the buyer on the property transaction of amount over Rs. 50 lakhs.

Is it possible to file 26QB online with the help of property platforms in 2025?
Yes, the top property portals offer bundled services to file and pay Form 26QB online along with end to end transaction support.

What will be the consequences of entering wrong PAN in Form 26QB?
In case of wrongly entered PAN, the seller will not be credited with TDS and thus the seller would find it hard to claim the deduction. There is minimal correction hence it is better to verify PAN prior to submission.

Are there any exceptions when Form 26QB is not required (when the property is inherited or given as a gift)?
No, TDS under Section 194IA and therefore form 26QB is not required in case of inheritance, gifts, or partition of property. It is applicable only for “sale” transactions for consideration.

Is the registration on the TRACES mandatory to receive Form 16B?
Buyers should also use the TRACES site to access Form 16B once they have filed Form 26QB.

Which payments have to be included in property value calculation?
The stamp duty, registration fees, and other levies are normally not included. The sale value in the agreement is taken into consideration.

What are the advantages of online marketplaces when it comes to Form 26QB compliance?
Online property platforms save paperwork and possibilities of error by validating PAN, uploading the document, and making direct online payments.

To get further specifications, it is always advisable to go to the official Income Tax Department of India site or seek the advice of a tax expert.

Sources:

• TIN NSDL Portal
• TRACES Portal
• Section 194IA of the Income Tax India - Tax on income