Form 26QB for TDS on Property

Consideration for immovable property shall include not only purchase price agreed but shall also include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to the transfer of the immovable property. TDS shall be deducted @ 1% on such total consideration inclusive of all above charges

Where the value of property is Rs. 50 Lakhs or more and number of buyer or seller is more than 1, TDS will be deducted separately for each buyer or seller. Suppose there is 1 seller and 2 buyer, then each buyer will deduct TDS separately for seller. If there is 2 seller and 1 buyer, such buyer will deduct TDS for 2 seller separately

1. For non filing or late filing of Form 26QB, a late fee u/s 234E of the Income Tax Act is levied at Rs. 200 per day for each day of delay
2. Further, Interest is payable @ 1% per month for the period from the date on which TDS is deductible to the date on which TDS is actually deducted
3. Further, if TDS is deducted but not deposited, Interest @ 1.5% from the date on which TDS is deducted to the date of actual deposit of TDS
4. Further, Assessing officer has powers to levy penalty u/s 271H