What is the penalty for filing Form 26QB late?

Missing the 30-day property TDS deadline costs interest on the late payment plus a daily late fee, and in serious cases a penalty. It's a common, avoidable mistake for first-time buyers who don't realise TDS is their job, not the seller's. Interest under Section 201(1A): 1%/month for late deduction, 1.5%/month for late deposit Late fee under Section 234E: Rs 200/day, capped at the TDS amount Penalty under Section 271H: Rs 10,000 to Rs 1,00,000 for continued non-compliance The BUYER, not the seller, is responsible for deducting and depositing this TDS

I forgot to deduct TDS when buying my flat - what now?

Missing the 30-day property TDS deadline costs interest on the late payment plus a daily late fee, and in serious cases a penalty. It's a common, avoidable mistake for first-time buyers who don't realise TDS is their job, not the seller's. Interest under Section 201(1A): 1%/month for late deduction, 1.5%/month for late deposit Late fee under Section 234E: Rs 200/day, capped at the TDS amount Penalty under Section 271H: Rs 10,000 to Rs 1,00,000 for continued non-compliance The BUYER, not the seller, is responsible for deducting and depositing this TDS

CAPGAIN › Answers › Capital gains & TDS on property › What Happens if I Don't File Form 26QB/141 on Time?

What Happens if I Don't File Form 26QB/141 on Time?

Short answer: Missing the 30-day property TDS deadline costs interest on the late payment plus a daily late fee, and in serious cases a penalty. It's a common, avoidable mistake for first-time buyers who don't realise TDS is their job, not the seller's.

Law: Sections 201(1A), 234E, 271H, Income-tax Act 1961 · Authority: CBDT · Status: in force · Checked 25 Sept 2026

What you need to know

Interest under Section 201(1A): 1%/month for late deduction, 1.5%/month for late deposit
Late fee under Section 234E: Rs 200/day, capped at the TDS amount
Penalty under Section 271H: Rs 10,000 to Rs 1,00,000 for continued non-compliance
The BUYER, not the seller, is responsible for deducting and depositing this TDS

Who this applies to: buyers, CAs

Official / primary source: incometaxindia.gov.in (government source)

The law behind it

Sections 54D, 54G, 54GA (1961) - Compulsory Acquisition & Industrial Relocation Exemptions

Three narrower exemptions for industrial property: 54D for compulsorily-acquired land/building, 54G for shifting out of an urban area, 54GA for shifting specifically into an SEZ. All three continue as Sections 84, 87 and 88 under the 2025 Act.

Sections 54D, 54G, 54GA, Income-tax Act 1961 (now Sections 84, 87, 88, Income-tax Act 2025) · in force · source

Cash Restrictions on Property Deals - Sections 269SS, 269ST and Penalty Sections 271D/271DA

Indian tax law strictly limits cash in property deals: no more than Rs 20,000 cash can be taken as a loan, deposit or advance towards a property, and no more than Rs 2 lakh cash can be received in total from one person for a sale. Breaking either rule means a penalty equal to the entire cash amount involved.

Sections 269SS, 269ST, 271D, 271DA, Income-tax Act 1961 · in force · source

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