When buying an immovable property in India worth ₹50 lakh or more, the buyer must deduct Tax Deducted at Source (TDS) at 1% of the total sale value. This tax is deposited with the government using Form 26QB. This applies to residential, commercial, and land purchases (except agricultural land).
The buyer must complete Form 26QB within 30 days from the end of the month in which the payment is made to the seller. After submitting the form, they must also provide the seller with a TDS certificate (Form 16B), which confirms that the tax has been deducted and deposited with the government. Failure to deduct or deposit TDS on property can lead to penalties, interest charges, and legal complications. Therefore, it is essential to complete the process on time.
