Major Head when individual paying TDS to builder

TDS 3911 views 5 replies

EqualTP

2 Points Joined December 2023

Hi,

I (individual) am purchasing an under-construction property from a builder (corporation). There is a construction linked payment (CLP) schedule. Builder is asking me to deposit TDS based on the CLP. They have sent me all the details and a document with screenshots to show how to ePay TDS

I go to incometax eportal > login > ePay Tax > Form 26QB.
   •   I enter my PAN, all the details in the greyed out boxes are correct. I click Continue.
   •   In next screen, I enter builder's PAN. The category of the PAN (which is a greyed out box) shows "Company". I click continue.
   •   In next screen, the tax applicable (Major head) is showing Corporatoin Tax (0020).

The builder's screenshot shows it needs to be Income Tax Other Than Companies (0021).

I want to understand when an individual pays TDS through Form 26QB to a builder, should the major head be 0020 or 0021? Thank you.

Replies (5)

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

0020 or 0021 is based on PAN ( type of assessee viz individual, huf, company etc )

Whatever is being selected automatically in portal is correct

Rgds
CA. Raj Doshi
R C D & Co.
Chartered Accountants
Kandivali West,Mumbai

subra srinivasan

11 Points Joined September 2015

When an Indididual deducts TDS on flat purchase from a corporate the E filing website chooses major head 20 ie corporate tax, because the TDS is claimed by the seller who is a corporate. But when I want to make a correction thro TRACES I get a error message that the major head is not compatible with the pan of the Payer whomis an individual. When I contacted Traces they say the major head should be 21. This is a problem faced by many. Pleasev advise

Nitika Agarwal

12 Points Joined January 2025

Agreed with subra srinivasan. Many folks are facing this issue.

CA Raj Doshi - I see contradicting information on this site itself. Traces helplines says it should be 0021 but while making a New payment the form does not allow to select and always shows 0020 (Corporate). It should be based on Buyer PAN and we are Individual type. Please clarify.