Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Late payment of tds on purchasing property

16 August 2024

I purchased a property in feb 2023 worth 1 cr and I made a payment of 60 lac on the spot without deducting any tds from it. I did not made any tds payment to government for this transaction. The remaining 40 lacs payment has not been done till date. Is it possible to somehow manage to avoid any penalties or fee for late depositing the tds on the payment already done. If yes, please provide the solution

Reply
Follow
Share

7 Replies

sabyasachi mukherjee (27574 Points)
Replied 17 August 2024

Post the value of the property

Upgrade to CAclubindia Pro. Subscribe Now!

Khushboo (7 Points)
Replied 17 August 2024

Its 1 crore sir/mam. 60 lacs was done in feb 2023and 40 lacs is remaining. Next payment to be done in 2025

jagdish chhugani (engineer) (1004 Points)
Replied 17 August 2024

The buyer needs to furnish Form 26QB within 30 days from the end of the month in which the tax deduction is carried out. An example below explains the calculation of the due date for the buyer.

Example: Anshul bought a property from Rahul, and the total sales consideration amounted to Rs. 50,00,000. The payment was made on 20^th September 2022. As per the tax regulations, Anshul must submit Form 26QB on or before 30^th October 2022. Failure to file the return within the due date results in late fees of ₹200 per day, not exceeding the amount of TDS deducted.

Consequences of Making Late TDS Payment

If Form 26QB online payment is delayed, it may affect both buyer and seller. Some of the significant consequences that a late TDS payment may have are:

As per section 234E, the taxpayer faces charges if Form 26QB submission delays or is not filed on time.
If the failure to file the 26QB TDS payment persists, the buyer will encounter a penalty of ₹200 until the filing of Form 26QB.
In addition, a fine under section 271H will be levied along with the penalty of ₹200 given above.
The responsibility for paying interest on any delayed tax deductions and deposits is imposed on the buyer.
In case the tax deductions are not completed, the monthly interest will be charged @ 1%. This interest amount is charged between when the tax is set to be removed and when it is deducted.
In case the tax is not deposited, interest will be charged @ 1.5% per month from the date of deduction until the actual payment is made.
If the buyer fails to file taxes on time or does not file at all, the seller will not be entitled to claim the tax credit.