Sec 194ia

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Anand Chaturvedi (Querist)
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30 July 2016 My friend signed the purchase agreement for an under construction house in May 2013 valued 60 lakh. Payments since then are being done in instalments. He did not know anything about Sec.194IA so didn't deduct the 1 tax from any instalment. Now, the final instalment is due and he plans to deduct full amount of tax and deposit it with interest. My question is should he file separate Form 26QB for each instalment or show entire TDS against the final instalment.Also, is he liable to pay penalty u/s 234E along with TDS and interest in the same Form26QB ?

CA Mohit Bansal

CA Mohit Bansal (Expert)
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31 July 2016 A single 24 QB can be filed for all the above instalments and tds details. Interest would suffice, no need to pay penalty

Anand Chaturvedi

Anand Chaturvedi (Querist)
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01 August 2016 Thank You Sir.But the form asks to write the penalty as per Sec. 234E for delay in furnishing the return under the head "FEE". Wouldn't he get demand notice for the same? Although he is deducting tax NOW and filing return but does it not amount to failure to file return in time?Please help.

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Anand Chaturvedi

Anand Chaturvedi (Querist)
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01 August 2016 Thank You Sir.But the form asks to write the penalty as per Sec. 234E for delay in furnishing the return under the head "FEE". Wouldn't he get demand notice for the same?Although he is deducting tax now and immediately filing the return, would it amount to failure to file return in time?Please help.