Form 26QB & TDS on Property Sale: Complete Guide for Buyers

Buying a property comes with its share of financial and legal formalities, and Tax Deducted at Source (TDS) is one you cannot skip. If you are purchasing immovable property from a resident seller and the transaction crosses the prescribed threshold, you are required to deduct TDS and deposit it with the government. 

Under the Income-tax Act, 1961, property buyers used Form 26QB to report and pay TDS under Section 194-IA. That still holds for any transaction where the payment or credit happened on or before 31 March 2026. From 1 April 2026, the new Income-tax Act, 2025 replaces Form 26QB with Form 141, with Schedule B covering TDS on the transfer of immovable property. 

Here is what buyers need to know about Form 26QB filing, TDS on property sale and TDS on property purchase, from payment to compliance. 

What is Form 26QB? 

Form 26QB is an online challan-cum-statement that a buyer uses to report and deposit TDS on the purchase of immovable property from a resident seller. Under the earlier Section 194-IA, TDS generally kicked in once the sale consideration or stamp duty value crossed ₹50 lakh. 

The responsibility to deduct and deposit the TDS sits with the buyer, not the seller. Deduction happens at the time of payment or credit to the seller, whichever comes first. 

You will need a valid PAN of the seller to file Form 26QB, but you do not need a TAN, since this is a PAN-based filing. 

One more thing worth flagging: Form 26QB applies only where the seller is a resident. If the seller is a non-resident, different TDS provisions and forms come into play. 

Essential Elements of TDS Form 26QB Filing 

Before you start filing, keep the following ready: 

• PAN of the buyer and seller 

• Name, address and contact details of the seller 

• Residential status of the seller 

• Property address and type of property 

• Date of the property agreement 

• Sale consideration and payment details 

• Applicable TDS amount 

• Stamp duty value details, wherever applicable 

Double-check the PAN details before you submit. An incorrect PAN can create tax-credit mismatches and compliance headaches later. 

If a transaction involves more than one buyer or seller, you may need to file separate Form 26QB submissions. It is worth confirming the exact filing requirement for your transaction before you make the payment. 

Also Read: Home Loan Tax Benefits Explained 

How to File Form 26QB? 

Form 26QB payment process runs entirely online through the Income Tax e-Filing portal. 

Step 1: Log in to the Income Tax e-Filing portal  

Visit the official portal and log in using your PAN-based credentials. 

Step 2: Go to e-Pay Tax  

Select e-File, then e-Pay Tax, then New Payment. For transactions under the Income-tax Act, 1961, pick the 26QB (TDS on Sale of Property) option. 

Step 3: Enter seller details  

Fill in the seller's PAN, name, residential status, address and contact details. Confirm the PAN is valid before moving on. 

Step 4: Enter property details  

Add the property type and address, the agreement date and the relevant payment or transaction details. 

Step 5: Enter TDS details  

Enter the sale consideration and the TDS amount. Under Section 194-IA, the applicable rate for a qualifying transaction with a resident seller is generally 1%. 

Step 6: Generate the challan and pay

Review everything, generate the challan, choose a payment method and complete the property TDS payment. 

Step 7: Save the acknowledgement

Once the payment goes through, download and keep the challan receipt. You can also pull it up later from the Payment History section of the e-Pay Tax service. 

Also read: How To declare Home Loan in Income Tax: A Step-By-Step Guide 

What changed from 1 April 2026? 

For any payment or credit made on or after 1 April 2026, use Form 141 instead of Form 26QB. Form 141 is the unified challan-cum-statement under the Income-tax Act, 2025, and for property transactions, you will select Schedule B, TDS on transfer of immovable property. 

List of Authorised Banks for TDS Payment 

The Income Tax Department's e-Pay Tax facility lets you pay through a set of authorised banks. As things stand, the list includes: 

Axis Bank, Bandhan Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, DCB Bank, Federal Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab & Sind Bank, Punjab National Bank, RBL Bank, South Indian Bank, State Bank of India, UCO Bank, Union Bank of India, Dhanlaxmi Bank, IDFC First Bank, Karnataka Bank, Reserve Bank of India, Tamilnad Mercantile Bank, Yes Bank and DBS Bank India Limited. 

This list can change, so it is worth checking the portal at the time of payment. RTGS/NEFT and other payment gateway options are also available where applicable. 

How to Download Form 26QB? 

Since Form 26QB filing is done online as a challan-cum-statement, there is no blank form to download beforehand. The whole process runs through the Income Tax e-Filing portal. 

Once the payment is successful, you can download the challan receipt right away. If you miss it at the time, it stays accessible through the Payment History section after you log in to the e-Pay Tax service. 

Hold on to the acknowledgement and payment receipt along with your other property transaction documents. You may need them for future tax records or compliance checks. 

For transactions falling under the new regime from 1 April 2026 onward, the equivalent filing goes through Form 141, and you can access the acknowledgement and payment details the same way, through the e-Filing portal. 

Penalties and Compliance 

Timely TDS deduction and payment matter a great deal for property buyer tax compliance. Miss a deadline, and you are looking at interest charges and other consequences under the applicable tax provisions. 

Under the earlier framework, interest applied at 1% per month or part of a month for a delay in deduction, and 1.5% per month or part of a month for a delay in depositing tax after deduction. 

To stay on the right side of this, verify the seller's PAN, calculate the TDS correctly, file the challan-cum-statement within the prescribed timeline and keep the payment acknowledgement safe. 

Wrapping Up 

Getting TDS on property sale right is a core part of closing a property purchase properly. For transactions under the Income-tax Act, 1961, Form 26QB was the prescribed route for reporting and depositing TDS under Section 194-IA. 

That changes from 1 April 2026 onward, when Form 141 takes over from Form 26QB under the Income-tax Act, 2025, with Schedule B covering TDS on the transfer of immovable property. 

Whether you are working through an older Form 26QB filing or the newer Form 141 process, getting the PAN details right, paying on time and keeping your documentation in order will go a long way toward smooth compliance with real estate tax rules. If you are also exploring home loan options for your property purchase, IIFL Home Loans offers home financing solutions for eligible borrowers, subject to applicable terms and eligibility criteria.