TDS on Property Purchase: How to Pay Form 26QB Online (Step-by-Step Guide)

If you're buying a home in Bangalore's East corridor — Gunjur, Varthur, Sarjapur, or Whitefield — and the deal value is ₹50 lakh or more, there's a compliance step that comes before you hand over the final payment: TDS under Section 194-IA. Skip it, and you could be looking at daily late fees, interest, or a seller who can't claim their tax credit.

Here's everything you need to know, in plain language, plus the exact steps to pay it online.

What is TDS on property purchase?

Under Section 194-IA of the Income Tax Act, when you buy an immovable property (other than rural agricultural land) worth ₹50 lakh or more, you — the buyer — are required to deduct 1% TDS from the amount payable to the seller and deposit it with the Income Tax Department.

This is done through a single online form called Form 26QB, which works as both a challan and a statement. The good news: you don't need a TAN. Your PAN is enough.

A few things worth knowing upfront:

• It applies even to first-time individual buyers purchasing a single residential property — not just companies or repeat investors.
• It's triggered by payment or credit, whichever comes first. That means booking amounts, advances, and instalments can all trigger a 26QB filing — even before the sale deed is registered.
• If you're paying in instalments, TDS must be deducted proportionately on each instalment, not just the final payment.
• If there's more than one seller, a separate Form 26QB has to be filed for each one.

Why it matters (beyond just "the law says so")

Once TDS is deposited and Form 26QB is filed, it shows up in the seller's Form 26AS. Without it, the seller can't claim credit for that tax when filing their return — and may end up paying tax twice on the same transaction. For buyers, it's also part of the paper trail that most home loan lenders and registration offices expect to see in order.

Step-by-step: how to pay TDS via Form 26QB

Step 1 — Log in to the Income Tax e-Filing portal Go to incometax.gov.in and log in with the buyer's PAN and password.

Step 2 — Open e-Pay Tax → New Payment → 26QB From the menu, go to e-File → e-Pay Tax. Under "New Payment," click Proceed on the 26QB (TDS on Sale of Property) option.

Step 3 — Fill in buyer, seller, and property details You'll complete three sections:

• Buyer details (PAN, address, contact)
• Seller details (PAN, address, contact)
• Property and tax details — type of property, address, agreement date, sale consideration, and stamp duty value

The 1% TDS amount is calculated automatically once you enter the sale value. Double-check that names and PANs match exactly what's on the PAN card — a mismatch here is one of the most common reasons TRACES later rejects a Form 16B request.

Step 4 — Choose your payment mode You'll be asked to select Pay Now or Pay Later. Pay Now takes you straight to payment; Pay Later generates the challan so you can pay from your dashboard shortly after.

Step 5 — Complete payment and download the acknowledgement Pay via net banking or debit card. Once successful, you'll get a Form 26QB acknowledgement number — download and save this for your records; you'll need it for registration and loan paperwork.

Step 6 — Download Form 16B for the seller (via TRACES) Once the challan is processed — usually within a few days — log in to the TRACES portal as a taxpayer and download Form 16B. Hand this to the seller as proof that TDS was deposited on their behalf.

Note: the screens above are illustrative mockups of the payment flow, not live captures — the portal's exact layout shifts periodically, but this sequence holds.

Deadline: don't count from the wrong date

This trips up a lot of buyers. The deadline for filing Form 26QB and depositing TDS is 30 days from the end of the month in which the deduction happened — not 30 days from the date of payment.

Example: If you deduct TDS on a payment made on 10 February, the month ends on 28/29 February — so your actual deadline is 30 March, not 10 March.

What happens if you're late or get it wrong

Quick checklist before you close the deal

• [ ] PAN details for buyer(s) and seller(s) confirmed against their PAN cards
• [ ] Sale consideration and stamp duty value finalised
• [ ] TDS deducted and Form 26QB filed within 30 days of month-end
• [ ] Payment receipt/challan downloaded and saved
• [ ] Form 16B downloaded from TRACES and shared with the seller
• [ ] Copies retained for registration and home loan documentation

Buying in East Bangalore? We handle this with you

At HouseChoice, we walk every buyer through TDS compliance as part of the transaction — not as an afterthought. Whether you're purchasing in Gunjur, Varthur, Sarjapur, or Whitefield, our team makes sure the Form 26QB filing, payment, and Form 16B handover happen on time, so your registration and loan disbursement aren't held up by a paperwork gap.

This guide is for general informational purposes and doesn't constitute tax advice. For transaction-specific guidance, consult a chartered accountant.