Easy to Generate Form 26QB via Gen E-TDS Filing Software

Form 26QB (Challan-cum Statement) As Per TDS

To start with, Form 26QB (challan-cum statement) would comprise two objectives. It consists of the challan and returns form for deductions as per TDS section 194 of the I-T Act, 1961

Moreover, the mentioned section of the income tax act 1961 is concerned with the kind of transactions that are engaged in immovable property selling & subjected to TDS including Form 26QB under the tax. Which counts from the finish month date where the TDS is deducted.

• For example: if the transaction would occur dated 14th March, from a legal perspective, Form 26QB under TDS needed to get submitted by the date 30th April.

Major Points of Form 26QB As Per TDS Section 194-IA

In the income tax act 1961, some rules are given that are concerned with immovable property buy & sale. In the mentioned transaction which arrived within section 194-IA domain. The purchaser is said to be the deductor who is required to deduct TDS when the transaction’s value is above INR 50 lakhs.

Thus, Form 16B would be required to be issued by a deductor to said deductee to be a purchaser. All the conditions that are to be followed to Form 26QB have been specified under section194-IA.

They Have Mentioned Topics About Form 26QB

• As per section 194-IA, the purchaser needed to deduct TDS with a 1% rate of the whole sales value which is computed during the settlement of the transaction.
• No Tax Deducted at Source u/s 194-IA would be applicable to the transactions which consist of buying and selling of agricultural land.
• TDS would not be subject to be applied on immovable property sale transactions with less than INR 50 lakhs value. On the transactions exceeding the mentioned limit. The TDS would be required to get deducted from the whole transaction value.
  • For instance, if the cost of the property is INR 52 lakhs then you are required to file TDS on the whole value of INR 52 lakhs and not on INR 2 lakhs (52 lakhs – 50 lakhs).
• If in the mode of instalment payment is filed then TDS would proportionately be deducted on each instalment.
• It is not essential for the purchaser to take the tax deduction Account Number (TAN) for deducting and depositing TDS? Anyway, to both the buyer and seller the PAN is said to be the mandatory requirement when the TDS deduction arrived using Form 26QB.
• The purchaser is required to deposit the TDS and submit form 26QB by Gen e-TDS software within 30 days computed from the last date of the month where the TDS would get deducted.
• The deductor will be must submit multiple forms i.e. Form 26QB when there are various buyers and sellers who would be engaged in these transactions.
• Post to deducting and depositing the TDS the buyer will file the TDS certificate to the seller within 15 days of the transactions rather than deducting the tax and depositing the same to the government.
• Post to that the buyer is required to receive Form 16B and submit the same to the seller.

Section 194-IA & Form 26QB Penalties

It is significant to note that

• The act of no TDS deduction
• Providing Form 16B or
• Interest along with the penalty will be imposed when a person does not file Form 26QB. Below are the mentioned penalties.