CPC (TDS) Follow up: 26QB Statement not yet filed for Purchase of Property during FY 2014-15

CPC (TDS) has issued an advisory communication to the buyers 0f immovable property regarding filing of TDS statement in Form 26QB.

The issued communication has been given below:

Date of communication : 05/03/2016

Dear Buyer of Immovable Property, PAN (XXXXXXXXX),

As per the information received in Annual Information return (AIR) through Registrar/Sub-registrar, you have executed transaction for Purchase of Immovable Property exceeding Rs. 50 Lakhs (Rupees Fifty Lakhs) during Financial Year 2014-15. However TDS Statement in Form 26QB has not yet been filed by you. In this regard, your urgent attention is invited to the following, with respect to filing of TDS Statement in Form 26QB and Issuance of TDS Certificates in Form 16B downloaded from TRACES.

1.Mandatory Filing of Form 26QB:

As per Finance Act of 2013, TDS is applicable on transfer of immovable property, wherein the consideration of the property exceeds or is equal to Rs 50 Lakhs. Sec 194 IA of the Income Tax Act, 1961 read with Rule 30, 31 & 31A of Income Tax Rules states that:

(a) For all such transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration.

(b) Tax so deducted should be deposited to the Government Account through e-tax Payment option (Netbanking) or any of the authorised bank branches. Any sum so deducted under section 194-IA shall be required to be paid to the credit of the Central Government within a period of seven days from the end of the month in which the deduction is made.

(c) PAN of seller as well as Purchaser should be mandatorily furnished in an online Form (Form 26QB) for furnishing information regarding the property transaction. Facility for furnishing information regarding the transaction of sale of immoveable property and payment of TDS thereof is available on the website www.tin-nsdl.com.

(d) TDS certificate in Form 16B is required to be issued by the Buyer of property to the Seller, in respect of the taxes deducted and deposited into the Government Account. Form 16B will be available for download by Registering on the website of Centralized Processing Cell (TDS) www.tdscpc.gov.in.

2.Issuance of TDS Certificates in Form 16B downloaded from TRACES:

It is mandatory for all buyers to issue TDS certificates after generating and downloading the same from TRACES, “TDS Reconciliation Analysis and Correction Enabling System”(www.tdscpc.gov.in). The TDS Certificates downloaded only from TRACES Portal will hold valid.

3.Implications of Non/Late filing of TDS Statements:

For Buyer of Property: In case of default on account of Non / late filing of Form 26QB, a fee shall be levied u/s 234E of the Act. He shall be liable to pay, by way of fee, a sum of Rs. 200 (two hundred) for every day during which such failure continues. The buyer would also be liable for defaults of Late Deduction, Late Payment and Interest thereon. Penalty under S. 271H may also be levied on him by the Assessing Officer.

For Seller of Property: Non/ Late filing of Form 26QB results into the TDS Credit not being available to the seller for claiming the amount of tax already deducted from the payments made.

In case of any clarification/suggestion, you may write to us on (info@tdscpc.gov.in). Please click the links for any assistance on Filing 26QB, Downloading Form 16B or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.


3 thoughts on “CPC (TDS) Follow up: 26QB Statement not yet filed for Purchase of Property during FY 2014-15

  1. amarsinh V.

    Yes I have an exact situation, so what was the outcome on this complaint. How to handle this situation. can we get some expert’s advice .i also got the same mail. Even the period of transaction was same. Can you email me at vidhate.amarsinh@gmail.com.

  2. Kaushik

    I purchased an under construction property for 61,00,000 in August 2014 and payments are being made in installments every 4-5 months. The installments are due to complete by March 2017. I haven’t yet deducted any TDS from the payments made earlier because of lack of information. I have received an email from income tax department with the same details as given above in March 2016 and I’m willing to make TDS payment to comply with it.

    However my question is: should I be deducting TDS of 61,000 for the whole purchase price in a single payment now in one go, or should I be only making payment for the part of the purchase price paid so far and deduct the remaining TDS amount when I make the future installments?

    Also, will I be penalized for the late deduction of TDS because the agreement and first payment was done in August 2014?

  3. Preetam

    In case I have purchased property in 2013 and I have yet not paid it, am I eligible for late payment. If yes, how this late payment suppose to be calculated


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