Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Total Stamp duty value of property FORM 26QB

Oliver Coelho (Service) (20 Points)

09 February 2023

I have sold my flat as sole owner at agreement value of 108L to 2 joint buyers. The market value or ready reckoner rate of the flat is 73.28L. The buyer's lawyer has deducted and paid 1.08L as 1% TDS in 2 separate form 26QB on individual buyer PAN as 54k + 54k. In this form 26qb He has mentioned property value as 108L in both cases but total stamp duty value of the property he has reduced by half to 36.64L saying that it is 73.28L divided by 2. I feel that this is incorrect reporting and is a cause for concern and possible future action by Income Tax considering the analytics at use in recent times. Request your experienced feedback if this dividing total stamp duty value of the property by number of buyers is correct procedure. Thanks and appreciating your help in advance.

Reply
Follow
Share

9 Replies

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 09 February 2023

TDS u/s 194IA need to be deduct on sale value or market rate whichever is hihg

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Oliver Coelho (Service) (20 Points)
Replied 09 February 2023

Dear Madam,

In the reporting form 26QB, the filer has divided Total stamp duty value of the property by 2 to account for 2 buyers. Is this correct?

1 Like

Dibyendu Majumder (142 Points)
Replied 10 February 2023

I think it is correct as at the time of filling out Form 26QB from the Income tax portal, they instructed me to fill in stamp duty value on a proportionate basis.

1 Like

Oliver Coelho (Service) (20 Points)
Replied 10 February 2023

Total stamp duty value of the property was 73.28L.

This is market value rate also known as ready reckoner rate. Does this value depend on number of buyers? I understand this as erroneous reporting. Property value or ready reckoner/ market value can't be divided by number of buyers in form 26QB. Stamp duty @ 6% is 6.48L which can be proportioned between buyers. Total stamp duty value of the property can't be....or can it?

Seniors please correct me if I am wrong.

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 10 February 2023

Property Value i.e. market value will be equally divided in both buyer and then TDS will be deducted

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Aarika (Finance Professional) (2260 Points)
Replied 06 June 2023

In the case of joint buyers, the total consideration amount (agreement value) is typically divided equally among them unless there is an explicit agreement stating otherwise. However, the stamp duty value of the property is not necessarily divided equally among the buyers.

2 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178099 Points)
Replied 07 June 2023

"Sorry, I am not a featured member."

For featured members contact.... https://www.caclubindia.com/catalogue/featured.asp

Samiksha Wagh (14 Points)
Replied 19 September 2023

Hello, what if the consideration value differs from the share in property?

Eg. if the buyers are father and son and the father is contributing 60% of funds and the son - 40% , but they have agreed to a 50% share in the property.

So what would be the consideration and sdv treatment for each buyer ??? 50-50 or 60-40

Please help . Thanks