Form 26QB
Structure 26QB is a structure utilized for the instalment of duty deducted at source (TDS) on property deals in India. A buyer is required by the Income Tax Act of 1961 to deduct TDS at a rate of 1% from the total consideration paid to the seller at the time of the property’s sale, provided that the consideration is greater than Rs. 50 lakhs. The buyer, seller, property, and TDS payment information are provided on the form. It is essential to take note of that Structure 26QB should be documented in the span of 30 days from the month’s end in which TDS was deducted.
The National Securities Depository Limited (NSDL) website can be used to fill out the form, and any of the authorized banks can accept payments. After submitting Form 26QB successfully, the buyer is required to obtain a unique acknowledgement number (UAN). The UAN fills in as evidence of instalment of TDS and should be given to the vender to guarantee credit for the TDS sum in their annual expense forms.
The seller must also include information about the TDS payment in their income tax returns in addition to submitting Form 26QB. By citing the buyer’s UAN in their income tax returns, the seller can claim credit for the TDS amount. Under the Income Tax Act, failure to deduct or submit TDS can result in penalties and interest. This is an important point to keep in mind. Consequently, buyers must timely file Form 26QB and pay TDS to ensure compliance with TDS provisions.