Tds on purchase of residential property

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chakshu a (Querist)
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15 September 2024 Suppose my seller and I had an agreement on 4th August - property value - 70 lac
And on the same day I paid an installment of 10lac (didn't deduct tds- credited full amount in his account)

And now 60lac will be paid (40 by home loan nd 20lac by me ) on date of property registration ie 3rd October

Presently current date is 15th sep

(I still have time to file 26qb ie tds payment to govt - last date 30th sep(31st August(4th August month lastdate) + 30 days))
How to go about it - should I file 26b today with 10k and 60k 26b on 3rd October and deduct 60k+10k=70k from the seller while paying him 60lac remaining together on 3rd October

Or
I just don't do anything and deduct tds 70k =60k+10k on 3rd October and just file 70k lumpsum 26qb on same day and just ignore that 10lac was actually paid as installment earlier

And if I do it now 10lac has been credited so should I consider it 99% and now since 10lac is considered 99% my tds amount will be in decimal which makes the whole process cumbersome

And mind I have not yet added that seller and buyer both are joint owners

And last isn't it logical that I just file 10k now and then 60k later irrespective that I paid full amount of installment to seller as I can take the tds from him while making the final amount
And just pay govt the tds for now from my account (I can reimburse from the seller)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 September 2024 Final option is better, both buyers file 26QB for both sellers (total 4 forms) before 30th September; declaring full amount paid/credited in single installment (on 4th August).

chakshu a

chakshu a (Querist)
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15 September 2024 So I just make 70 k payment on or before 30th sept even though only (1st installment is made till that date) and collect whole amount 70k from seller when I make him the 60lac payment....is it right??
logically this way I paid whole tds to govt earlier even though I made the payment after that date. Does it cause any problem??

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 September 2024 1. Yes.
2. No problem, if paid earlier. when total payment amount is same as per TDS deduction.

chakshu a

chakshu a (Querist)
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15 September 2024 Thank you.

This seems logical and appropriate. This way I just file 4 26qb ( instead of 8 - as I made one installment earlier ) and show the amount paid as lumpsum.

Thankyou

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 September 2024 Yes, acceptable.
Good luck.

chakshu a

chakshu a (Querist)
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15 September 2024 WHEN I SEE
TOTAL VALUE OF CONSIDERATION(PROPERTY VALUE) COLUMN - FOR buyer - should i fill 35 lac for each buyer or 70 lac total for all buyers.

plus amount paid/credited and total stamp duty value - will be 1750000 again since 70lac/4 as tds will be calculated 4 times (1 buyer -2 seller X2)

one more thing since stamp duty is paid on 70 lac , shouldnt the value of total stamp duty value be 70 lac or should it be circle rate calculation(which is approx 55 lac the dealer used to say--- not calculated using circle rate for now, if i use that amount- the gap between value of property and stamp duty will be more than 20%)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 September 2024 If there are two buyers and two sellers, all having equal shares in the property, then each buyer will file two forms 26QB with property value 17.50 lakhs in each form.

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