TDS on immovable property

It is advisable to pay TDS amount by the buyer directly because as per income tax payment to be made should include TDS value so you must only make 99% payment to seller rest to government, if you make 80 lakh to seller it can be assumed that 80 lakh is 99% and then TDS will be calculated on it.

You need to file only 3 form 26QB as you have said there are only 3 buyers.

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Thank you

Hi,

- It is the responsibility of the buyer to deduct TDS at the time of payment of consideration to the seller and deposit it with the government otherwise you will be treated as assesee in default and liable for interest and late fee.

- You were required to file 6 Form 26 QB as there are 2 sellers and three buyers and divide the amount as per the ratio mentioned in the sale deed.

- Ask seller to return you TDS amount of Rs.80,000.

Thanks

Hi,

Hope you are doing well !!

1.Yes, it is compulsory that the TDS amount should get transferred from buyer’s account only

The buyer has to deduct TDS at 1% of the total sale consideration.

Note that the buyer is required to deduct TDS, not the seller.

The buyer must then deposit this 1% TDS to the Government otherwise you will be treated as assessee in default.

2. Form 26QB is to be filed in by each buyer for unique buyer seller combination for respective share.

You need to file 6 Form 26QB.

Thanks & Regards,

Payal Chhajed 

Hi

TDS should get deducted and paid to govt from buyers side only.

You have to file 6 Form 26QB (3 buyers and 2 sellers).

Hope it helps

Hi,

1. It is advisable that the TDS amount should get transferred from buyer’s account only.

2. No, you need to file 6 form i.e. for each combination.

It is fine even if seller pay the TDS to government, its just that it should go under buyer name.  Do note that interest liability should be calculated and paid by buyer directly, else the meter will keep running. 

Yes, 3 26QB need to be filed.  Also, it is arguable, that since each party share is less than 50 lac, this TDS provision would not apply.  HOwever, this could be a litigation with Deprtment. 

I would suggest you ask the seller to deposit the tax.

Hi,

1. It's not relevant from whose account TDS payment is going. It should be from PAN number of buyer. Yes, seller can pay TDS from his account under buyer's PAN.

2. It will be 3 Forms.