TDS deduction on property purchase
This query is : Resolved
22 March 2025
I have purchased a property >50lacs. The payment is to be done in instalments. I have paid only 10% (more than a month back) and the there is another part payment due now. The rest being a home loan. How do I file the Form 26QB.
1) Can I show the entire payment amount as lumpsum or it necessarily needs to be shown as multiple instalments?
2) What is the date of payment that should be captured ?
3) Do I need to show my wife's details as the co owner though financially there is no contribution from her side ? How do we split this payment in case that is needed ?
1) Can I show the entire payment amount as lumpsum or it necessarily needs to be shown as multiple instalments?
2) What is the date of payment that should be captured ?
3) Do I need to show my wife's details as the co owner though financially there is no contribution from her side ? How do we split this payment in case that is needed ?
22 March 2025
1. Advisable to declare it as lumpsum payment
2. On the date of first payment date
3. Divide the amount equally is she is going to be join owner in the property.
2. On the date of first payment date
3. Divide the amount equally is she is going to be join owner in the property.
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23 March 2025
1) Can I show the entire payment amount as a lump sum, or must it be shown as multiple installments?
You must file Form 26QB for each installment separately. The TDS is required to be deducted at the time of payment, so a separate Form 26QB should be filed for each installment paid to the seller.
2) What is the date of payment that should be captured?
The date of payment should be the actual date on which you make the installment payment to the seller. Since you are making payments in multiple installments, each installment will have its own respective payment date recorded in Form 26QB.
3) Do I need to show my wife's details as the co-owner, even though she has no financial contribution? How do we split the payment in that case?
If the property is jointly owned by you and your wife (as per the sale deed), then both of you are considered joint buyers, even if she is not financially contributing. In this case:
Each co-owner needs to file a separate Form 26QB for their share of the transaction.
The TDS deduction should be proportionate to the ownership share. If she has 50% ownership, then 50% of the payment must be considered under her Form 26QB.
If you are the sole owner (as per the sale deed), then only you need to file Form 26QB for the entire amount.
You must file Form 26QB for each installment separately. The TDS is required to be deducted at the time of payment, so a separate Form 26QB should be filed for each installment paid to the seller.
2) What is the date of payment that should be captured?
The date of payment should be the actual date on which you make the installment payment to the seller. Since you are making payments in multiple installments, each installment will have its own respective payment date recorded in Form 26QB.
3) Do I need to show my wife's details as the co-owner, even though she has no financial contribution? How do we split the payment in that case?
If the property is jointly owned by you and your wife (as per the sale deed), then both of you are considered joint buyers, even if she is not financially contributing. In this case:
Each co-owner needs to file a separate Form 26QB for their share of the transaction.
The TDS deduction should be proportionate to the ownership share. If she has 50% ownership, then 50% of the payment must be considered under her Form 26QB.
If you are the sole owner (as per the sale deed), then only you need to file Form 26QB for the entire amount.
23 March 2025
a) So I am paying 3 instalments. 2 of my own contribution and the 3rd from the bank. Are you suggesting that I file the form thrice ? Also the bank itself is asking for the proof of TDS payment. So do we really need to do this multiple times or can be done in one go ?
b) Also what's the implication of the delay. My first payment was done on 1st Feb. What is the penalty or interest payable if the TDS is paid now ?
Appreciate the help and guidance.
b) Also what's the implication of the delay. My first payment was done on 1st Feb. What is the penalty or interest payable if the TDS is paid now ?
Appreciate the help and guidance.
23 March 2025
(a) Should I File Form 26QB Three Times for Three Installments?
Yes, you must file Form 26QB separately for each installment because TDS must be deducted at the time of payment. Here’s how it works:
First installment (Your Contribution) – Form 26QB required.
Second installment (Your Contribution) – Form 26QB required.
Third installment (Bank Loan Disbursement) – Form 26QB required.
Since the bank is disbursing the third installment, they may require proof of TDS payment before releasing the loan. Some banks even deduct TDS themselves before releasing the amount. Check with your bank if they will deduct and deposit TDS or if you need to do it yourself.
🔹 Can it be done in one go?
No, because TDS must be deducted at the time of payment. However, if the first two installments have already been paid without TDS deduction, you will need to pay it now along with interest and penalty for delay.
(b) What is the Interest and Penalty for Late TDS Payment?
Since your first installment was paid on February 1st but TDS has not yet been deposited, the following penalties/interest will apply:
1) Interest on Late Deduction & Payment of TDS (Section 201(1A))
If TDS was not deducted at the time of payment → 1% per month (or part of the month) from the date of payment to the date of deduction.
If TDS was deducted but not deposited to the government → 1.5% per month (or part of the month) from the date of deduction to the date of deposit.
2) Late Filing Fee for Form 26QB (Section 234E)
₹200 per day of delay (from the due date until the actual filing date).
Maximum penalty = TDS amount.
Yes, you must file Form 26QB separately for each installment because TDS must be deducted at the time of payment. Here’s how it works:
First installment (Your Contribution) – Form 26QB required.
Second installment (Your Contribution) – Form 26QB required.
Third installment (Bank Loan Disbursement) – Form 26QB required.
Since the bank is disbursing the third installment, they may require proof of TDS payment before releasing the loan. Some banks even deduct TDS themselves before releasing the amount. Check with your bank if they will deduct and deposit TDS or if you need to do it yourself.
🔹 Can it be done in one go?
No, because TDS must be deducted at the time of payment. However, if the first two installments have already been paid without TDS deduction, you will need to pay it now along with interest and penalty for delay.
(b) What is the Interest and Penalty for Late TDS Payment?
Since your first installment was paid on February 1st but TDS has not yet been deposited, the following penalties/interest will apply:
1) Interest on Late Deduction & Payment of TDS (Section 201(1A))
If TDS was not deducted at the time of payment → 1% per month (or part of the month) from the date of payment to the date of deduction.
If TDS was deducted but not deposited to the government → 1.5% per month (or part of the month) from the date of deduction to the date of deposit.
2) Late Filing Fee for Form 26QB (Section 234E)
₹200 per day of delay (from the due date until the actual filing date).
Maximum penalty = TDS amount.
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