TDS on sale of property

409 views 3 replies

Hi,

I have a query regarding TDS filing on 26QB.

The property was sold by the legal heirs of the property owner but the full amount was paid to one of the legal heirs (after obtaining NoC from the other one).

a) In this case, do we need to file 26QB two nos (one each for legal heir) as there are more than one seller.

b) also do we need to show the value of consideration equally and deduct taxes of 0.5% against each legal heir eventhough the

full payment is made to only to one seller?

c) Also shall we show date of agreement as sale deed registration date and mode of payment as lumpsum though some amount is paid as advance.

Please clarify.

 

Replies (3)
A. it depends upon the agreement . if there are two names and share of each known you have to pay equally to both and deduct TDS and 26QB from both.

b. You should not pay to one seller but pay to both seller's equally bcoz both will have to show capital gain in ITR

c. Under 194IA TDS is required to be deducted on the date of dvance payment. Rest TDS when agreement made and payment made whichever is earlier.

1. Form 26QB is to be filed by the person who is making the payments (Buyer) within 30 days from the end of the month in which the TDS was deducted. 
2. TDS u/s 194-IA @ 1% of the sale consideration needs to be deducted if the sale consideration exceeds Rs. 50 lakhs. 
3. In your case, even though NOC was obtained for making the payments towards the purchase of immovable property, TDS needs to be remitted to the respective sellers PAN and proportionately file form 26QB under each seller.  
4. Once the property is registered it will be only on two sellers' name hence, TDS needed to be reflected under both seller's name, so it the buyer's responsibility to remit TDS in both the seller's name. 
5. To avoid any mishap in the future, remit the amount to both the sellers separately and remit TDS under both names separately. 
Please correct me if the above solution has an alternative view. 

Hi,

Thanks for the reply.  I agree with your points.

 

regards

uppili

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details