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Property buyer got a Form 26QB late fee notice

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Find

A buyer of property of ₹50 lakh or more must deduct 1% TDS under Sec 194IA (now Sec 393(1) Table Sl. No. 3(i)) and file Form 26QB (now Form 141) within 30 days from the end of the month of deduction. Late filing attracts ₹200 a day under Sec 234E (now Sec 427), capped at the TDS amount.

Provisions

Sec 194IA, Income-tax Act 1961 (now Sec 393(1) Table Sl. No. 3(i), Income-tax Act 2025); Sec 234E, Income-tax Act 1961 (now Sec 427, Income-tax Act 2025); Sec 201(1A), Income-tax Act 1961 (now Sec 398(3), Income-tax Act 2025)

Analysis

Example: payment of ₹80 lakh on 10 March 2026 with TDS of ₹80,000; Form 26QB was due by 30 April 2026. Filed on 20 May 2026, it is 20 days late, so a fee of ₹4,000. If the TDS was also deposited late, interest at 1.5% a month applies. Pay the demand through TRACES or e-Pay Tax, then issue Form 16B to the seller.

Close

  1. Log in to TRACES as taxpayer (buyer PAN)
  2. Check the default for the 26QB acknowledgement
  3. Pay the fee and interest using the demand payment option
  4. Download Form 16B (now Form 132) and give it to the seller
  5. Keep the challan and Form 16B with the sale deed

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Connect nowPay and start: TDS default, Sec 200A / 201 (now 399 / 398), ₹4,999

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