Myself is NRI is buying property in India and want to know about TDS on sale of property. Please clarify following points for online payment of 1% TDS on sale of property 1.Online 26QB form submission and payment should be one or four if there are two buyers and two sellers. 2.80% payment done on agreement balance 20% are postdated cheque upon possaaaion and TDS deducted in PDC payment. When should I pay TDS online on agreement date or PDC date?
a) FOrm will be required to be submitted 4 times. Buyer one to seller one, buyer one to seller 2, buyer 2 to seller 1 and buyer 2 to seller 2.
b) These four forms will have to be submitted on each payment. WHich means that if 80% ayment is made in say 5 installments, u have to deduct and submit it each time.
1. Can I do full TDS online (on agreement value) itself on same date as agreement is already done. 2. Confirm that Online TDS payment should be in four times if agreement value is 1 Cr, Buyer-1, Seller-1, value-25 lacs, TDS 25K Buyer-1, Seller-2, value-25 lacs, TDS 25K Buyer-2, Seller-1, value-25 lacs, TDS 25K Buyer-2, Seller-2, value-25 lacs, TDS 25K 3. One of CA suggested to fill form for buyer-1, seller-1 and pay full TDS. Select one checkmark available on website for multiple buyer. Can someone reconfirm this?
The form specifically requires that you pay and file returns for each payment. DOing it in one shot will attract interest and penal provisions for late filing.
You have rightly calculated the TDS value of 25000 for each.
Since its, a joint property, the suggstion provided is not correct. It is jugadu but not in spirit of law. You may attract penal provisions.
Appreciated your point to point reply, Few more clarification; 1. Since I want to get rid of this procedure, Can I pay TDS on full value including post dated payment now in one go? 2. what shud I fill in online form for ex 1 Cr agreement value divided in 4 forms Whether more than one Transferee/Buyer* - (yes or no?) Total Value of Consideration (Property Value)*: (25 lacs or 1cr ?) 3. If I m not going to file return, is it ok I just handover challan to seller, rest procedure let him do?
When you are saying multiple buyers and sellers, do you mean that the property is jointly owned by the sellers and the property is also purchased by the buyers jointly, by executing one single sale deed for the entire transaction? Or will there be multiple sale deeds for each buyer/property?
If the property is jointly owned, there are multiple sellers but one single sale deed. The chalan for remittance of TDS provides a check box for multiple sellers but it does not then require you to indicate the names of all the sellers. Likewise for the buyers also. Hence, in my view, if you indicate the name of the first buyer and first seller as indicated in the sale deed, it should be sufficient.
If the property is divisible and there are multiple sellers for each property, then you can remit tax for each seller separately. However, if the transaction value is for each property being sold is less than Rs 50L, there is no need for TDS.
Yes. You can pay full TDS amount in the first payment and get rid of all these process.
You should select "Yes". There are two questions in the form. In one place u have to specify the payment amount and in the other u have to mention the total consideration.
The liability of payment of TDS and filing is on you. You may give him the challan but n case he doesnt file your returns, you will attract penal provisions. Hence I would not suggest you take any such risk. Consult a chartered accountant close by, or contact me. Get it filed yourself and ensure the chapter is closed. File it on timely basis to avoid any problems.
I think this is being replied by my fellow professional colleague.
The TDS should be paid on payment basis i.e. whatever is paid on agreement then tds @1% shall be deducted on that amount and the balance shall be paid when the PDC is cleared.
There is no restriction on payment of TDS on the full amount.
