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Tds on purchase of one property and 3 different sellers

29 December 2018

I have purchased a single property in July-2018 owned by three different parties. I have to deduct TDS on it by 11-08-2018, but TDS was not deducted then. Now how much late fee should be paid, and should the late fee be paid for all the parties or only one party? And if it should be paid for 3 parties, how should I do that?

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9 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 29 December 2018

200/- per day penalty for late filing and interest @ 1%

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Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 29 December 2018

late fees to be paid for TDS is determined on the basis of amount and not on the basis of no. of parties to transaction

againt credit of amount paid as late fees or interest is not transfered to parties, so no question to consider no. of parties

follow regular provisions governing TDS payments and returns

1 Like

Nipendra saini (16 Points)
Replied 29 December 2018

When we are deducting TDS for 3 different parties, 3 26QB should be generated. So I wanted to know whether late fee should be paid in one return or three returns?

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 29 December 2018

Originally posted by : Nipendra saini
	When we are deducting TDS for 3 different parties, 3 26QB should be generated. So I wanted to know whether late fee should be paid in one return or three returns?

1 return

1 Like

Nipendra saini (16 Points)
Replied 29 December 2018

So we should pay the whole Penalty in one return of any party?

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 29 December 2018

Originally posted by : Nipendra saini
	So we should pay the whole Penalty in one return of any party?

Yes

1 Like

Nipendra saini (16 Points)
Replied 29 December 2018

And for the other two parties regular return to be filed??

Nitesh bind (Student CA Final ) (12692 Points)
Replied 29 December 2018

See, if there are more than One Owner (i.e. Co-owners) exist then if Aggregate Property value exceeds Rs. 50lakhs then TDS u/s 194-IA shall be deducted for payment to each co-owner. Example- If Property value Rs. 55 lakhs and there are 2 Co-owners then TDS shall be deducted on 27.5 Lakhs for each co-owner in different 26QB.

Now, Coming to section 234E If your TDS return is filed late then there is a mandatory late fee of Rs. 200 per day upto max. of TDS amount.
Now as there are more than 1 return then 234E shall be applied for all return and late fee shall be levied for each return.

3 Like

Sachin C (Tax Consultant) (107 Points)
Replied 30 December 2018

Agree With Nitesh as we have to generate 3 Form 16B certificates for 3 different people and fill three different 26QB challan. The TDS shall be deposited with 30 days of making the payment or else there would be Interest for Late Deduction and late deposit of TDS alongwith Late Fee U/s 234E @ Rs 200 for default in furnishing the Return.

Thank You,

Sachin C