Property Value in 26QB in case of more than one buyer
This query is : Resolved
03 April 2022
A. Background: -
i. We have two buyers and one seller combination for filling form 26QB for the purchase of under construction Immovable property worth more than 50 Lakhs.
In the cost sheet provided by the builder there are two parts as follows-
a. Property Value including Car Parking amounting to 52 Lakh
b. Extra Charges including Club membership Charges, Maintenance charges etc. amounting to 3 Lakh
ii. 1st buyer had made the initial booking with the initial token application money (1 Lakh) and have provided form 16B to the deductee for the tax deducted u/s 194IA, however the property value reported in filling form 26QB is 52 Lakhs and enabling the option 'YES' for Whether more than one Transferee/Buyer and Payment Type as 'Installment'.
iii. Payment towards next installments will be made partly from own bank account (as down payments) and partly from bank (as loans) by both the buyers according to their individual ability to make payment.
iv. TDS will be deducted on each payment by the person making payment towards the installment and form 26QB shall be filled accordingly.
B. Query: -
1. What will be the property value in 26QB? (52Lakh or 55Lakh)
2. What would be the amount on which TDS would be deductible? (52Lakh or 55Lakh)
3. Whether the property value reported (52Lakh) while filling form 26QB (as discussed above in point A.ii) for the initial tax deducted on application money by the 1st buyer was correct or it needed to be shown proportionately between the two buyers?
4. What will the 2nd buyer show as property value while filling form 26QB when he will make subsequent payment towards the installment? - (52Lakh or 55Lakh / proportionately)
i. We have two buyers and one seller combination for filling form 26QB for the purchase of under construction Immovable property worth more than 50 Lakhs.
In the cost sheet provided by the builder there are two parts as follows-
a. Property Value including Car Parking amounting to 52 Lakh
b. Extra Charges including Club membership Charges, Maintenance charges etc. amounting to 3 Lakh
ii. 1st buyer had made the initial booking with the initial token application money (1 Lakh) and have provided form 16B to the deductee for the tax deducted u/s 194IA, however the property value reported in filling form 26QB is 52 Lakhs and enabling the option 'YES' for Whether more than one Transferee/Buyer and Payment Type as 'Installment'.
iii. Payment towards next installments will be made partly from own bank account (as down payments) and partly from bank (as loans) by both the buyers according to their individual ability to make payment.
iv. TDS will be deducted on each payment by the person making payment towards the installment and form 26QB shall be filled accordingly.
B. Query: -
1. What will be the property value in 26QB? (52Lakh or 55Lakh)
2. What would be the amount on which TDS would be deductible? (52Lakh or 55Lakh)
3. Whether the property value reported (52Lakh) while filling form 26QB (as discussed above in point A.ii) for the initial tax deducted on application money by the 1st buyer was correct or it needed to be shown proportionately between the two buyers?
4. What will the 2nd buyer show as property value while filling form 26QB when he will make subsequent payment towards the installment? - (52Lakh or 55Lakh / proportionately)
03 April 2022
1 It's 52 lacs value of the property.
2 52 lacs.
3 correct.
4 Show proportionate payment. Show property value 52 lacs.
2 52 lacs.
3 correct.
4 Show proportionate payment. Show property value 52 lacs.
03 April 2022
Hello Sir,
Thanks for the quick response.
However please get me some more clarity for the below query
Whether TDS would be applicable or not on the extra charges portion (in my case 3Lakhs).?
Thanks for the quick response.
However please get me some more clarity for the below query
Whether TDS would be applicable or not on the extra charges portion (in my case 3Lakhs).?
04 April 2022
TDS not applicable on the 3 lacs payment.
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