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TDS On Purchase of Flat One Buyer Three Sellers

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Nilesh Shukla

21 Points Posted on 29 September 2024

Suppose a person has purchased a property of 54L and the sellers are 3 (husband, wife and son) with equal shares (since there's no mention of their individual ratios in the agreement).

As a buyer, I'll have to fill 3 form 26QB for all 3 sellers. Can you pls confirm if the details below are correct for each of the sellers:

Total Value of Consideration (Property Value) * 54,00,000
Amount paid/credited currently (B) * 18,00,000
Total stamp duty value of the property (C) * 18,00,000

And accordingly, I'll pay 18K TDS per head totalling 54K as 1% of the 54L property.

Replies (2)

Quick Summary

When purchasing a property with multiple sellers, TDS (Tax Deducted at Source) needs to be handled for each individual. In this case, with one buyer and three sellers sharing equally in a £54 lakh property, the buyer must file three separate Form 26QBs. TDS is calculated at 1% on each seller's share (£18 lakh), resulting in £18,000 TDS per seller, totalling £54,000. It's crucial to ensure all seller PANs are operative to avoid a higher 20% TDS rate.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 29 September 2024

Yes that is correct..

Aashok Kumar Sharma

Finance/Compliance Consultant

76094 Points Posted on 08 November 2026

One buyer, three sellers: three 26QB forms:
• Property at Rs 54 lakh (above Rs 50 lakh), with three sellers holding equal shares: TDS at 1% under 194-IA on each seller's share (Rs 18 lakh each, so Rs 18,000 each). The Rs 50 lakh threshold is on the total consideration (clarified from 1 October 2024 by the Finance (No. 2) Act 2024; earlier also generally applied to total consideration).
• File three separate Form 26QBs, one per seller, each showing the total consideration (Rs 54 lakh) and that seller's share. Issue Form 16B to each.
• If a seller's PAN is inoperative, TDS at 20% for that seller.