TDS is applicable to the sale of real estate when the sales consideration exceeds Rs 50 lacs, as per Section 194-IA of the Income Tax Act of 1961. The challan cum statement of the tax deduction is Form 26QB.
Within 30 days following the end of the month in which TDS was withheld, TDS and completed Form 26QB must be filed. Within 15 days of the deadline for submitting the challan cum statement in Form 26QB, the person deducting TDS must provide the payee with Form 16B.
Conditions for filing Form 26QB
- The buyer and seller’s PAN
- Buyer and seller’s addresses
- Buyer and seller contact information
- Details about the property
- The amount credited or paid
- Details of the tax deposit
