Consequences of Non-Filing of Form 26QB: What Every Property Buyer Must Know (2025 Guide)
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When you purchase a property above ₹50 lakh, filing Form 26QB is mandatory for the buyer. This form confirms that TDS on sale of property has been deducted and deposited with the Income Tax Department.
Failing to file this form can cause serious financial complications for both the buyer and the seller.
If you want help with Form 26QB filing, reach out to us anytime at +91 92054 56766 | +91 83840 58321.
What Happens If Form 26QB Is Not Filed?
1. Seller Cannot Claim TDS in Income Tax Return
If the buyer fails to file Form 26QB:
- The TDS amount will not reflect in the seller’s Form 26AS
- The seller cannot claim TDS credit while filing their ITR
- This may force the seller to pay tax again on the same amount, leading to unnecessary double taxation
This creates delays, demand notices, and financial stress for the seller.
2. Seller Cannot Claim TDS While Reporting Capital Gains
When the seller calculates capital gains for that financial year, they rely on TDS credit.
If Form 26QB is not filed:
- The TDS on sale of property will not be visible in Form 26AS
- The seller cannot adjust TDS against capital gains tax
- The seller may need to pay the full tax again to the Income Tax Department
This can lead to legal issues, notices, and further penalties.
When TDS Deduction Is NOT Required on Property Purchase
TDS is not applicable in the following situations:
✔ 1. When the sale consideration or stamp duty value is below ₹50 lakh
No TDS is required for low-value property transactions.
✔ 2. When the property is agricultural land
Agricultural land is fully exempt from TDS under Section 194IA.
✔ 3. When the seller is an NRI (Section 195 applies)
NRI property sales fall under Section 195, not Section 194IA.
In such cases, TDS is higher (20%–30%) and must be handled differently.
Why Understanding TDS Matters for Homebuyers
Buying a property involves several financial responsibilities, and TDS on sale of property compliance is one of the most important.
Incorrect filing can lead to:
- Penalties for buyers
- Delays in seller tax refunds
- Legal notices
- Double taxation for sellers
- Issues in future property documentation
To avoid such complications, ensure you deduct TDS on time and file Form 26QB correctly.
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Need Help with Form 26QB or TDS Filing?
If you want more help or info, contact Respace Infra — we will help you in filling it.
📞 +91 92054 56766 | +91 83840 58321
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