As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration.

You might want to read Know the provisions related to TDS on Immovable Properties u/s 194IA

Points to be remembered by the Purchaser of the Property:

1. Deduct tax @ 1% from the sale consideration.
2. Collect the Permanent Account Number (PAN) of the Seller and verify the same with the Original PAN card.
3. PAN of seller as well as Purchaser should be mandatorily furnished in the online Form for furnishing information regarding the sale transaction.
4. Do not commit any error in quoting the PAN or other details in the online Form as there is no online mechanism for rectification of errors. For the purpose of rectification you are required to contact Income Tax Department.

Points to be remembered by the Seller of the Property:

1. Provide your PAN to the Purchaser for furnishing information regarding TDS to the Income Tax Department.
2. Verify deposit of taxes deducted by the Purchaser in your Form 26AS Annual Tax Statement.
As per the provision here TDS is required to be paid with ePayment option i.e. online. Let us know how to make payment of such TDS online.

To avail online payment facility the taxpayer is required to have a net-banking account with any of the Authorized Banks. Please follow the steps as under to pay tax online;

Step 1

a) Log on to NSDL-TIN website (www.tin-nsdl.com).
b) Click on the option “Online form for furnishing TDS on property(Form 26QB)”.
c) Select Form for Payment of TDS on purchase of Property.

Step 2

After selecting the form you will be directed to the screen for entering certain information.

Example:-

a) Permanent Account Number (PAN) of Property Purchaser and Seller.
b) Address of the Purchaser, Seller as well as the Property being purchased
c) Financial Year during which the Purchase has been made
d) Major Head Code – To indicate the type of tax applicable viz; Tax on companies/Tax on other than companies
e) Value of Property
f) Date of agreement/booking
g) Amount Paid/credited (Transaction amount)
h) Rate of TDS
i) TDS Amount
j) Dates of payment/credit, deduction
k) Select the option for “Payment of taxes immediately”

It is important to ensure that PAN of Buyer and Seller are correctly mentioned in the form. There is no online mechanism for subsequent rectification. Deductor will have to approach the Assessing Officer or CPC-TDS for rectification of errors.

Step 3

After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.

If PAN is available then TIN system will display the contents you have entered along with the “Name” appearing in the ITD database with respect the PAN entered by you.

Step 4

You can now verify the details entered by you. In case you have made a mistake in data entry, click on “EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button. Nine digit alpha numeric ACK no. will be generated and you will be directed to the net-banking site provided by you.

Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on “Confirm

Step 5

After confirmation an option will be provided for submitting to Bank. On clicking on Submit to Bank deductor will have to login to the net-banking site with the user ID/ password provided by the bank for net-banking purpose and enter payment details at the bank site.
On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.

In case your counterfoil containing the CIN is not displayed on completion of the transaction and you want the duplicate counterfoil then Your Bank provides facility for re-generation of electronic challan counterfoil kindly check the Bank website, if not then you should contact your bank request them for duplicate challan counterfoil.

Payment of TDS Subsequently

The procedure for paying the TDS amount into the Bank subsequently, i.e. not immediately after furnishing the purchase transaction details online?

Using this facility deductor (Buyer) can furnish the details online and make the payment of taxes subsequently either through net-banking account or by visiting any of the authorized bank branches. Following are the steps to avail this facility:

From Step 1 till Step 3 has to be followed exactly as explained above then;

Step 4

You can now verify the details entered by you. In case you have made a mistake in data entry, click on “EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button. Nine digit alpha numeric ACK no. will be generated and you will be provided with an option to print an Acknowledgment slip.

Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on “Confirm“.

Step 5

With the printout of the Acknowledgment slip, you may visit any of the authorized Bank branches to make the payment of TDS subsequently. The Bank will make the payment through its netbanking facility and provide you the Challan counterfoil as acknowledgment for payment of taxes. Based on the information in the Acknowledgment slip, the bank will make the payment only through net-banking facility by visiting tin-nsdl.com and entering the acknowledgement number duly generated by TIN for the statement already filled by the buyer in respect of that transaction.

In case you desire to make the payment through e-tax payment (netbanking account) subsequently, you may access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided an option to submit to the bank wherein you have to select the Bank through which you desire to make the payment. You will be taken to the netbanking login screen wherein you can make the payment online.

Question: What do I do if I have misplaced the Acknowledgment slip for payment through the Bank branches?

Answer: You may access the access the link ‘View/Payment of TDS on property” on the TIN website. On entering the details as per the acknowledgment slip, you will be provided options to either Print the Acknowledgment Slip.

In case you desire to make an online payment, on the same screen option for Submit to the bank is provided wherein you have to select the Bank for payment. You will be taken to the netbanking login screen wherein you can make the payment online.

Question: How can I verify details after Payment?

Answer: You can verify Payment of TDS from the link here TDS on immoveable property.

How to make payment of TDS on Property through e-TAX payment option?

403 thoughts on “How to make payment of TDS on Property through e-TAX payment option?

  • June 18, 2013 at 11:58 AM
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    what to do if two people are buying the property. there is provision for entering only one PAN.

    Reply
    • June 18, 2013 at 5:40 PM
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      Hi Hari,

      In such case each buyers have to generate separate challan for TDS on the basis of their share of ownership (ratio) on the buying property.

      Reply
      • July 30, 2013 at 5:47 PM
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        Hi Soubhagya, We are two buyers me an my wife and two seller. So just wanted to check can i just pay
        two challaen for seller or it is manddatory four challan 26QB two by me and two by my wife.
        Also, i have raised loan on my name and my wife name. Please advise.

        Reply
        • July 30, 2013 at 6:34 PM
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          Hi Sumit,

          Best is go with four. It will remove all “what ifs for future” 🙂

          Reply
    • July 30, 2013 at 6:12 PM
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      Hi Soubhagya ,

      I purchase a property over 50 lacs on me and my wife name. There are two sellers on this property. So just wanted to check can I pay two challan for equal amount furnishing my pan number for two seller or do we need to fill four challan as my wife is also co owner.

      Reply
      • July 30, 2013 at 6:41 PM
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        Four will be better.

        Reply
    • September 6, 2013 at 8:00 AM
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      hi Soubhagya,
      I am buying a flat over 50lacs in my and my wife’s name. We both have PAN numbers. However, we both hold a joint account. Is it okay if only 1 challan is made for1% TDS?

      Reply
      • September 6, 2013 at 11:54 AM
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        Hi SKKR,

        I can’t say whether it’s ok or not, but it is advisable to get the form 26QB filed in the same proportion of ownership for TDS keeping total consideration as full value by both the buyers.

        Reply
  • June 27, 2013 at 8:18 PM
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    Hi,

    I am buying a property where two sellers have joint ownership. Can I submit 50% 50% TDS against their PAN numbers? I don’t see any such option.. TIN website have an option to click multiple sellers option, but after that there is no option to enter details of second seller.

    What to do in this case?

    Reply
    • June 28, 2013 at 8:30 AM
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      Hi Rohit,

      In such case you have place the TDS payment twice for each seller. In each case your (Payer/Buyer) PAN will be same.

      Reply
      • June 28, 2013 at 12:52 PM
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        Thanks Soubhagya

        So does that mean that each time I have to take property value = 50%? Example if I am buying a 60L property from joint owners (husband and wife), I hv to make two payments and take property value 30L in each case, with TDS value of 1%???

        Reply
        • June 28, 2013 at 2:54 PM
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          Yes Rohit, you have to make two transactions.

          Reply
          • March 30, 2015 at 8:58 PM
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            Hi Soubhagya Kumar Patra,

            if husband and wife is join-owners and sale agreement doesn’t state who will own how much share. should we still fill 2 challans? As husband and wife, we are not 2 individual buyers right, it is just joint-ownership.

            Thanks,
            -Ajay

          • April 4, 2015 at 10:56 PM
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            Hi Ajay,

            Joint owners will be treated as two buyers only. Better to go with two challans.

  • July 1, 2013 at 2:13 PM
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    Hi,

    We are 3 buyers who have bought a flat from 2 sellers (joint owners), as per the registered Sale Agreement. In such a scenario how is the TDS payment required to be done and how many challans should be generated?

    Do note 1 buyer has made the maximum payment. The other 2 buyers have contributed a smaller share and will be taking a partial home loan (around 20-30% of the overall purchase value) as well to fund the purchase.

    Thanks in advance…
    Regards

    Reply
    • July 1, 2013 at 9:50 PM
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      Hi Shweta,

      As per the provision the TDS should be levied on the total consideration exceeding Rs. 50Lacs, thus it doesn’t matter whether one buyer contributes max and other(s) pay less. And even the seller will not get exempted if his/her share is less than Rs.50Lacs (where total is plus Rs. 50Lacs).

      Now answer to your query is simple. each buyers have to calculate their portion of payment, then they have to generate separate challan for the payment of TDS to each seller with their PAN as per the proportion of their respective ownership in the property.

      Reply
  • July 2, 2013 at 2:37 PM
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    So what if we are planning to pay the entire amount in installments? For Eg:
    Property value is 80 Lakhs.
    In 1st intallment we pay 20 Lakhs, in 2nd we pay another 30 Lakhs and then there is a loan of 30 Lakhs. So do we deduct 1% of each installment and create separate challans? And what to do about the bank loan amount? Do we notify the bank regarding the same or do we need to deduct first and provide the bank with the challan and bank will then give the loan amount to builder?

    Reply
    • July 2, 2013 at 2:51 PM
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      Hi Amol,

      Each time you make the payment to the seller, you have to ensure TDS should be deducted and created separate challan for each installments @1% of the payment amount. In case of loan, you have to ensure either bank or you take the responsibility for such deduction of TDS to be done before making any payment to seller of the property.

      Reply
      • July 2, 2013 at 3:42 PM
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        Thanks a lot Soubhagya for the prompt reply and an informative article which I am sure will help many.
        One final query was: This 1% is on the agreement cost and not the total cost which includes Agreement Cost+ Stamp duty+ Service Tax+VAT, etc….. right ?

        Reply
        • July 2, 2013 at 3:46 PM
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          Amol,

          Agreement cost, stamp duty, service tax and VAT are not the part of Seller’s income, thus technically these should not be the part of total consideration for TDS calculation.

          Reply
          • July 28, 2013 at 10:58 AM
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            Hi Soubhagya,

            Can I adjust the final payment and deduct TDS for each subsequent payment made after 1st June. I understand it requires a separate challan for each of the payment.

            Thanks

          • July 28, 2013 at 6:44 PM
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            Hi Tilak,
            Provision says, you need to pay TDS on each installment or lump sum payments.

      • July 11, 2013 at 5:20 PM
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        I bought property of 73 lakh, out of it I have already paid 7 lakh on 10th June & 5 lakh on 10th July. I have not deducted TDS yet. now the bank will be pay to seller 30 lakh now & remaining payment by july end, Now please advice shall i deduct 73 thousand TDS now.
        I have to show it to Bank so they can disburse loan amount.
        appreciate your reply.

        Reply
        • July 11, 2013 at 5:55 PM
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          Hi Shirish,

          Since you haven’t deducted the TDS on the earlier payments of Rs. 7Lacs & 5Lacs, now you do one thing before making the payment of Rs. 30Lacs generate 3 separate challans (through form26QB) referring the previous two payments where TDS will be Rs. 7k, 5k and Rs. 30K on the TDS on the current payment amount i.e. 30Lacs. Finally adjust all these TDS amount from the Rs.30Lacs..

          Thus make sure you deduct and pay TDS on the future payment before releasing it to seller. (don’t deduct any TDS on the remaining amount which has to be paid in July end)

          Reply
          • February 25, 2015 at 8:01 PM
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            Hi Soubhagya,
            I m buying property from 2 joint holders and we are 3 buyers. So should we need to fill in 6 form 26 QB and we also need to identify the proportion of share of each individual (either buyer or seller). Please correct me if i am wrong. Thanks.

          • March 1, 2015 at 9:13 PM
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            Hi Mehul,

            Yes, you are right!

  • July 5, 2013 at 8:40 AM
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    Hello,
    We have purchased a house worth Rs.60 lac. At the time of agreement to sale we had paid Rs.40 lac to the Seller in the month of May 2013. Now we intend to pay remaining 20 Lac amount at the time of Sale deed. So our query is TDS will be applicable on the pending amount or on the whole consideration amount?
    Please reply as soon as possible.

    Reply
    • July 5, 2013 at 10:45 AM
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      Hi Sheetal,

      This part is still unclear in the provision. Since you have paid a part of the consideration before June 1, now you can pay 1% on the pending amount . In case there is any deficit in tax payment then the seller has to pay the tax liability while filing his returns. Alternatively I would suggest you to write a mail or call NSDL.

      Reply
  • July 10, 2013 at 5:08 PM
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    Whether TDS applicable for VAT and service tax of property?

    My developer saying that 1.03 % TDS for 50lac to 1cr and 1.113% for above 1cr of property.

    Please clarify this.

    Regards,
    Thanikasalam

    Reply
    • July 10, 2013 at 8:28 PM
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      Hi Thanikasalam,

      The provision u/s194IA says 1% TDS will be applicable where the total consideration exceeds Rs. 50Lacs, and it nowhere talks about such VAT & Service Tax. Thus you are required pay 1% only if the buying property is more than Rs.50Lacs.

      Reply
  • July 12, 2013 at 5:00 PM
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    Great blog. Thanks, it was very helpful. In my case, we have purchased an apartment (under construction) from a real estate company (Lotus 3C). We have taken a loan and pay installments whenever the builder sends a demand. In such a scenario, could you please help with the following fields:

    1. Tax applicable: 0020 or 0021?
    2. date of agreement/booking? Is this the date of the allotment letter?
    3. Total Value of Consideration (Property Value): Is this BSP? EVerything added?
    4. Amount Paid/Credited: Is this the total value of installment?
    5. Total Amount Paid/Credited*: Is this same as above?
    6. how do i generate for 16B?

    Thanks. I will appreciate any pointers.

    Reply
    • July 12, 2013 at 6:02 PM
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      Hi Sangeeta,

      Find the answers below
      1. 0021
      2. It can be the date when you made the first payment (booking payment).
      3. It’s consideration value, which you need to pay to seller.
      4. Since you are paying in installment, then select installment
      5. Yes, same as above
      6. Once the challan is generated, download the link below for 16B. as of now online TDS Certifcate is not available.
      http://www.succinctfp.com/wp-content/uploads/2013/06/Form16B_194IA_www.succinctfp.com_.pdf

      Reply
      • July 15, 2013 at 4:56 PM
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        Thanks much Soubhagya, appreciate your inputs. So for now, I have to take a printout of form16b, fill it manually and give it to the builder?

        Reply
        • July 15, 2013 at 5:08 PM
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          Yes! you got it right.

          Reply
  • July 15, 2013 at 3:53 PM
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    Hi
    A friend of mine is buying a property worth 1 Cr , the property is owned by 3 people ie Husband,wife,daughter ( Sellers). How do we divide the TDS amount between all the three.

    Reply
    • July 15, 2013 at 4:03 PM
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      Hi Chirag,

      This is a case of One Buyer and Three Sellers. In such situation buyer (your friend) has to fill 26QB thrice for each sellers separately and amount of consideration should be kept proportionately (as per their ownership) and 1% TDS to be charged to each seller.

      Reply
      • July 15, 2013 at 5:04 PM
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        In case, there are two buyers (e.g, if i have purchased this along with my husband), should we each pay TDS separately?

        Reply
        • July 15, 2013 at 5:11 PM
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          Hi Sangeeta,

          Yes! you and your husband need to file 26QB separately as per the proportion of your holdings. And 1% TDS needs to be deducted on each.

          Reply
          • July 15, 2013 at 5:24 PM
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            wow! How about if I pay complete TDS for current instalment and my husband pays full TDS for next instalment? Will that be acceptable or do we need to split it every single time? We hold a joint account from which these payments go.

            You don’t know how much i appreciate your help!

          • July 16, 2013 at 11:39 AM
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            Soubhagya ,

            great info on your blog.. much appreciated..
            here’s some add-on qs to what Sangeeta asked earlier..

            1. Amount Paid/Credited: So if we are paying in installments and I have paid say 40 lakh out of total value of say 70 lakh before June 1.. and I have just paid installment of say 5 lakh… here I need to fill 5 lakh right?
            2. If there are joint buyers from a builder and one person is paying all the money then only he/she has to fill the firm and pay all of the 1%?
            3. Within how many days of paying the installment to the seller has the tax to be paid to government to avoid paying interest or avoiding complications?

          • July 16, 2013 at 1:42 PM
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            Hi Vivek,

            Answers here;
            1. Yes! It should be Rs. 5Lacs
            2. Whoever is paying full, he/she has to deduct TDS. It’s not logical if the co-owner is not paying anything then he/she should deduct TDS.
            3. It’s 7 days.

        • July 16, 2013 at 1:33 PM
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          Hi Sangeeta,

          Better you split it before making any payment. Hope that’s not a cumbersome task. 🙂 I am happy that you got the clarity so far.

          Reply
          • July 17, 2013 at 3:29 PM
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            Soubhagya wrt previous query.. do I need to mention 5 lakh per se or 99% of 5 lakh..?
            Also I read somewhere the payment has to be made within seven days of the end of the month in which payment to the seller has been made..any thought if its seven days from payment as you just said or seven days of the next month in which payment has been made.. Tks

          • July 17, 2013 at 3:37 PM
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            Hi Vivek,

            You need to mention Rs. 5Lacs. Yes, it is seven days from the end of the month in which the deduction is made. but deductor shall furnish the certificate of TDS in Form No. 16B to the seller within fifteen days from the due date for furnishing the challan-cum-statement in Form No. 26QB.

  • July 17, 2013 at 3:51 PM
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    So the Form 16B also has to be submitted each time an installment is made? Coz the builder just asked me to send him a copy of this tax receipt/challan.
    Secondly, to bug you last time on this.. so I need to say 5 lakh in that amount paid thing even though that’s the total demand call in installment and I have paid 99% of 5 lakh to the builder, and is paying the balance 1% in TDS? The form mentions both paid and in bracket payable so its pretty confusing for a lay person.

    Reply
    • July 17, 2013 at 3:59 PM
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      Yes 16B each time.. That’s a pain 🙂 and of course it should be Rs. 5Lacs even though seller will get Rs. 4.95Lac, but TDS amount of Rs. 5k becomes his liability which he can claim later (if eligible).

      Reply
  • July 17, 2013 at 6:17 PM
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    Hi
    Very good info – to the point.

    My father and I are buying a flat – though the entire amount is being paid by my father – my name is also being added as a co-owner but I am not paying anything for the flat. The Index-2 will have both our names. Do we both need to deduct 1% TDS for the seller or can it be done only through my father as technically he is the one paying for it. My name is just there as a co-owner.

    Thanks

    Reply
    • July 18, 2013 at 4:42 PM
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      Hi Sunil,

      Your father only needs to deduct the TDS.

      Reply
  • July 17, 2013 at 6:38 PM
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    Thanks for the details, Amol!

    Could you please help me with my situation. I am buying an apartment worth around 51L in agreement value, around 28L of which will come from a loan. Now I’m being told that I need to pay the TDS for the entire amount (which comes to around 51k) along with the payment of my share of the value. If I’m paying the builder only 33L and the rest will come from the bank, do I need to pay TDS only on the 33L or the entire agreement value of 51L? Won’t the bank pay TDS on the portion that they are lending?

    Thanks!

    Reply
    • July 17, 2013 at 8:41 PM
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      Sorry, I meant Soubhagya. Was talking to a guy named Amol when I wrote the comment and got the names mixed up. 🙂

      Reply
      • July 18, 2013 at 4:53 PM
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        🙂 🙂 it happens. No issue!

        Reply
    • July 18, 2013 at 4:47 PM
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      Hi Ashish,

      Yes, on the first Rs. 33 Lacs you need to ensure you are deducting 1% TDS. As indicated the property is also financed bank, even though it’s your responsibility to ensure 1% of TDS is deducted i.e. whether you deduct or bank deduct (the provision u/s 194IA says this). I guess bank will take care before disbursing the loan. You can check with the bank.

      Reply
      • July 18, 2013 at 6:28 PM
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        Thanks!

        Actually, I checked with the bank and they say I need to pay TDS for the full value. The logic being that the bank is giving the loan to me, and therefore it is me who is paying all the money to the builder anyways.

        Reply
        • July 18, 2013 at 6:41 PM
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          Hi Ashish,

          That’s again not a problem. Then better you deduct the TDS and pay the rest to seller.

          Reply
  • July 19, 2013 at 9:57 AM
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    I am trying to make the payment online. There are 2 date fields which I need to enter before going ahead:

    1. Date of payment/ credit (Date of payment to the Transferor/ Seller)
    2. Date of Tax deduction

    Could you please explain what these dates are. The system does not accept any date in future. I also do not know the exact date when I would be registering the property. I just know from the bank that, we would be registering the property in another week.

    Reply
    • July 19, 2013 at 2:36 PM
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      Hi Vignesh,

      1. If you have made any online transfer or issued cheque then mention any of these dates.
      2. Can keep the same date as above

      If there is no agreement made till date then put the booking date.

      Reply
      • July 19, 2013 at 4:23 PM
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        Thanks Soubhagya,

        Even if it is a part payment I can mention that date? I have paid the seller around 30% during the sale agreement. Can I quote this date?

        The remaining 70% would be transferred to the seller during the time of registration.

        Also how many days before the registration should I pay TDS ?

        Reply
        • July 19, 2013 at 4:48 PM
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          Hi Vignesh,

          On each payment you need to ensure you are deducting the TDS amount and making the payment to Govt. In the place of Agreement/Booking date you can put date of booking or agreement date, but in the place of Date of payment/ credit (Date of payment to the Transferor/ Seller) you need to enter the payment date.

          Reply
          • July 19, 2013 at 6:28 PM
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            But the system does not take any future date..
            Can I just use the current date and pay the entire TDS?

          • July 19, 2013 at 6:32 PM
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            You need to make the TDS deduction as and when you make the payments (immediately before)

  • July 19, 2013 at 10:22 PM
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    Hi

    Thanks for the information so far.

    In our case, we (my wife and I) are purchasing a property for 54l from another couple.

    So there are two buyers and two sellers, effectively 4 PAN numbers.

    Do we split this into 2 TDS payments of 27k (my pan number and 1 pan number from buyer) and another 27k with my wife’s PAN number with the second PAN number from the buyer?

    If yes, in each of the transaction, should we mention property value as 54l or 27l?

    To add to the confusion, 1lac was paid back in January 2013 as token advance, 11 lacs in March and the remaining 42 lacs will be paid on Monday, 22nd July.

    How should we proceed?

    Thanks in advance.

    Reply
    • July 19, 2013 at 11:25 PM
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      Hi CA,

      Whatever has been paid before June 1, 2013 TDS will not be levied on that. Any payment post this date you can go with the same process as you explained and yes, in property value put Rs. 54Lacs.

      Reply
  • July 20, 2013 at 10:52 AM
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    Hi Soubhagya,
    Appreciate all the responses on this blog they have been quite helpful. i do have a few questions though; I registered my flat in May 2013 and paid around 40% of the agreement value in May. I took a loan for the rest and the bank issued disbursements according to the builders demands in June 2013. Now when i went with another demand letter to the bank in July, they informed me about the TDS. According to the bank i only need to pay TDS on the amount remaining after 1st June 2013. i.e 60% . I have verified the same with the builder but i cannot find any information about it on the income tax website. Hence can you please assist.
    2) The builder and the bank only require a copy of the challan. They are not asking for 16B. Do i still need to fill it out?? What is the reason for 16B??
    3) I and my mother are co owners of which i am the first applicant. hence will it suffice if I pay the TDS on one form itself??
    Thanks in advance

    Reply
    • July 21, 2013 at 10:21 AM
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      Hi Amit,

      1. You can find the TDS related information in NSDL website here https://www.tin-nsdl.com/TDS/TDS-Introduction.php
      2. Paying such TDS is buyer’s (your) responsibility, but not liability. It has to be deducted from amount amount that you give to seller. You can pay 1% on any amount to be paid on or after June 1, 2013, but ensure you deduct from the payment amount or get the refund from the seller.
      3. TDS should be paid/deducted as per proportion of contribution towards the purchase. Even if you are taking it jointly, but making all the payments on your own then you can deduct 1% TDS on the amount.

      Reply
  • July 20, 2013 at 3:39 PM
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    I completed for 26QB, opting e-payment on subsequent date, as i have my salaried account with RBS(I want to make sure all property transactions are only thru my salaried account – RBS), i could not pay thru online netbanking. Now i have the ack number. I went to near by ICICI bank in Hyderabad-Madhapur branch with RBS Cheque for the TDS amount. They told me that their system is not ready still to accept this TDS and they already have few customers with the same request pending for a month. Also they were not sure if they can accept my RBS cheque for the same. I was told, they will get back to me soon.
    Any other autorized banks will be able to accept RBS Cheque payment for this TDS payment? If yes, which Bank? Anyone tried Bank payment option here?

    Reply
    • July 21, 2013 at 9:36 AM
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      Hi Venugopal,

      Really sorry, can’t comment on this. Let’s anyone here can answer to your query.

      Reply
      • July 23, 2013 at 9:26 AM
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        An update – Tried with SBI. Visited couple of branches where TDS on IT is accepted. They were asking me to fill challan – even though its clearly states in ACK slip instructions that Challan filling is not required. Even SBI branches are washing their hands to accept payment – as they are not fully aware of this new procedure.

        Reply
        • July 23, 2013 at 11:19 AM
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          Hi Venugopal,

          Thank you for sharing your experience. This will help others to know.

          Reply
  • July 23, 2013 at 9:06 AM
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    Hi Shoubhagya,
    I am purchasing a property worth 5650000. I have already paid 2L and did not cut the TDS for that payment. The rest of the money will paid to the builder immediately after the registration.

    1) Should the TDS be cut after the payment?
    2) Can I pay the TDS 56,500 for the whole payment after the registration?
    3) Can I mention that TDS of amountRs56,500 has been paid, in the registered sale deed?

    Reply
    • July 23, 2013 at 11:27 AM
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      Hi Divakar,

      If the amount Rs. 2Lacs has been paid before June 1, 2013 then no TDS required to be deducted, but in case it’s after the said said you have to deduct the pending TDS along with 1% payable amount or make the TDS payment on Rs. 2Lacs and ask seller for a refund (they have to do). Answers to other queries are below;

      1. TDS needs to be deducted first then pay the rest amount along with TDS certificate to seller.
      2. TDS needs to be paid as and when you make payment, so you can not simply deduct lumpsum if your payments are in installments.
      3. Sorry , I can’t comment on this.

      Reply
      • July 23, 2013 at 11:42 AM
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        Thanks Soubhagya for the answers. I have further questions on this.

        1) 2L has been paid in the month of July for which I did not pay the TDS.
        2) My next installment is 54,50,000 . (56,50,000 – 2,00,000). Do I need to make two different TDS payments? One for Two lakhs and one for 54,50,000? Or can I club to gether and pay for 56,50,000?
        -Divakar

        Reply
        • July 23, 2013 at 11:52 AM
          Permalink

          Hi Divakar,

          You need to go for 2 different payments.

          Reply
          • July 23, 2013 at 11:59 AM
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            Soubhagya,
            Previously you were mentioning that TDS need to be cut with in 7 days of the payment to seller. In my case, the initial 2L is paid around three weeks back to seller. So is it ok to pay the TDS for that 2Lakh? or is there any other formatlity/provision to cut the TDS for that amount now?
            -Divakar

          • July 23, 2013 at 12:04 PM
            Permalink

            Hi Divakar,

            You heard it right, but still IT dpt gave you some leniency (not formally). So you can still make the pending payment of TDS if not done yet, but do not keep this in practice.

  • July 25, 2013 at 10:03 AM
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    Hi Soubhagya,
    First of all congratulations and Thanks for writing such a nice, informative, useful article.
    I have a question about filling form26B. I am individual and I have bought a flat(under construction from a builder/company).

    in my case which option should i choose for the filed “Tax Applicable* ”
    -(0020)INCOME-TAX ON COMPANIES (CORPORATION TAX)
    -(0021)INCOME-TAX (OTHER THAN COMPANIES)
    I see you have suggested 0021 above but when i searched i found this:

    The obligation of TDS is on “Payer” to deduct for PAYEE.If Payee is Individual, it should be “other than companies”., if Payee is company that companies should be selected.
    Please Refer https://www.tin-nsdl.com/oltas/oltas-faq-challan.php

    So should it not the option A, i.e. (0020)INCOME-TAX ON COMPANIES (CORPORATION TAX) because we are deducting the TDS from the income of the seller who is a company?

    Please advise.
    Thanks
    Saeed

    Reply
    • July 25, 2013 at 10:11 AM
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      sorry, i meant FORM 26QB

      Reply
    • July 25, 2013 at 10:33 AM
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      Hi Saeed,

      Form 26QB based on buyer’s PAN. Since you are a Individual Payer/Buyer (not a company), so you have to select (0021)INCOME-TAX (OTHER THAN COMPANIES).

      Reply
      • July 25, 2013 at 11:55 AM
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        Thanks so much for the confirmation, Soubhagya ! 🙂

        Reply
        • July 25, 2013 at 12:05 PM
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          Most Welcome Saeed !

          Reply
          • October 7, 2013 at 10:34 PM
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            Hi

            But in the form we need to fill PAN of both payer and seller so why did you mention “Form 26QB based on buyer’s PAN.?

            Thanks

          • October 7, 2013 at 11:13 PM
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            Hi Ashish,

            FYI, form 26QB has to be filed by the buyer not the seller.

  • July 26, 2013 at 5:45 AM
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    Hello Sobhagya,

    Very informative post! Thank you very much!

    Here is my situation:
    I made a payment to the builder last week, I didn’t know about the TDS rule at that time, so I did not withhold 1% TDS from the payment. My property price is over 50L and both me and my wife are the joint owners. We are NRI’s (recently became US citizen last month, OCI in progress). We both have PAN Numbers. I paid my installment more than 7 days ago from 3 different sources. Questions:
    1. How do I go about making the 1% TDS payment after the fact?
    2. Can I have builder make the payment on our behalf?
    3. Since we are joint owners, do we have to make 2 different deposits of TDS amount divided equally?
    4. Can I remit the TDS payment from my NRE account electronically?

    Thanks!

    Reply
    • July 26, 2013 at 5:59 AM
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      Forgot to ask one more question. Our remaining balance is about 66L to be paid to the builder so I assume we fall under the category of payment more than 50L. Now since there are two buyers does the amount change per person? Would it be 33L per person which is below 50L. Do we still need to deduct 1% TDS in this case?

      Reply
      • July 26, 2013 at 1:15 PM
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        Yes, still you need to pay 1% TDS. Fyi, the said provision applies when the total consideration exceeds Rs. 50Lacs not on the portion of Individual ownership amount.

        Reply
    • July 26, 2013 at 1:10 PM
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      Hi Caliguy,

      If you have made any payment without deducting the TDS then without delay fill up the form 26QB with the transaction details and pay the required TDS. You can ask the seller for refund/adjustment for such TDS payment. (Seller should not say no to this.
      Rest answers in sequence below;
      1. Hope I clarified the question in the above lines.
      2. Yes, it depends on the contribution towards buying the property. TDS payment will be as per the proportion.
      3. Better remit the amount into NRO account and make the payment from there.

      Reply
      • July 26, 2013 at 10:49 PM
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        Thank yo so much for your reply! One more clarification, since the property is owned jointly, each one of us is 50% owner. Majority of our last payment came from my account. Do we split the TDS based on from whose account the money was paid to the Builder or just split it evenly (50%-50%) based on the ownership of the flat.
        Is there any reason why you recommended paying it from our NRO account? We don’t have funds in our NRO account, so I was planning to pay it from our NRE account.

        Reply
        • July 26, 2013 at 11:35 PM
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          Hi Caliguy,

          TDS payment can be done on the basis of amount of payment done by each owner(buyer). In any installment, just figure out how much is your contribution, then pay TDS of 1% on that amount and same has to be done by the second joint onwer(buyer). There is no specific reason why NRE account is suggested, but NRO account is normally used for local payment & receiving credits.

          Reply
          • July 27, 2013 at 12:20 AM
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            okay, great!! I will stick to 50-50% for TDS for each owner so keep things simple. Most of the money is coming from our joint account anyway.
            Thank you so much for your help!!

  • July 28, 2013 at 8:26 AM
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    Hello Sobhagya,

    Very informative post, Thank you very much, It really helped me to file my TDS.

    But there is one query, after i made epayment from HDFC bank site i got Payment of Direct tax confirmation on bank site along with BSR Code, DateofReceipt, Challan Sr. No., now how i can get Challan statement from Tax website? as I need to produce it to Seller.

    Please advice, Thanks
    Rakesh

    Reply
    • July 28, 2013 at 9:36 AM
      Permalink

      Hi Rakesh,

      HDFC Bank has a provision to download online challan copy from it’s netbanking. If you are unable to locate the option, call bank’s customer care they will guide you.

      Reply
  • August 1, 2013 at 10:11 PM
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    Hi Soubhagya,

    My father, my wife and myself are buying a property worth Rs.94 lacs from a couple. My queries are –
    1. How many form 26QB are required to be filled by us? do we need to fill 6 form 26QB ( from each of us for both the sellers?)
    2. For every form 26QB filled by us, would we need to fill a form 16B and give to seller?
    3. How do we divide the property value and TDS amount amongst us to be filled in each form 26QB?
    4. We have already paid Rs 1 lac as token amount post 01-june-2013, how do we take that into account while filling form 26QB?
    5. We have taken a loan or Rs 75 lacs from bank, rest of us will be paid by us. Can we deduct the TDS on full Rs 94 lacs ourself, without asking the bank to do it on Rs 75 lacs?

    You help on above queries will be highly appreciated.
    Thanks,
    Tj

    Reply
  • August 2, 2013 at 11:42 AM
    Permalink

    Hi Soubhagya,

    My father, my wife and myself are buying a property worth Rs.94 lacs from a couple. My queries are –
    1. How many form 26QB are required to be filled by us? do we need to fill 6 form 26QB ( from each of us for both the sellers?)
    2. For every form 26QB filled by us, we would need to fill a form 16B and give to seller?
    3. How do we divide the property value and TDS amount amongst us to be filled in each form 26QB?
    4. We have already paid Rs 1 lac as token amount post 01-june-2013, how do we take that into account while filling form 26QB?
    5. We have taken a loan or Rs 75 lacs from bank, rest of us will be paid by us. Can we deduct the TDS on full Rs 94 lacs ourself, without asking the bank to do it on Rs 75 lacs?

    You help on above queries will be highly appreciated.
    Thanks,
    Tj

    Reply
    • August 2, 2013 at 12:51 PM
      Permalink

      Hi TJ,

      Answers are in sequence to your queries;
      >> Each buyer needs to fill 2 forms i.e. in total 6.
      >> Yes, for every form26QB you need to fill form 16B
      >> You may go as per the proportion of ownership
      >> Just to avoid complexity, you may fill form 26QB under one of the buyer’s name, later adjust this with future payment. This mean in future the buyer who adjust this 1Lac TDS he may not again file the same again.
      >> No! TDS should be deducted as and when payment has to be made to seller.

      Reply
  • August 3, 2013 at 7:21 PM
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    Hi Saubhgya

    Certain queries on the subject. while filling the form 26qb online , we have not been able to understand following:
    1) The while paying online tax, TDS page asks for value of property, further we are required to furnish the consideration amount (again value of property). Based on consideration amount entered, the tds amount is auto calculated (TDS@1%). If all the money is paid at once then this logic seems fine , but what shall be put as consideration amount for case where money is paid in 5 installment ( eg 20% of consideration in each installment). As per logic suggested by you TDS shall be paid separately for each installment – so will it right to put property value as 100% and consideration amount as 20% (installment) each time? wont it be wrong to mention lower consideration amount where the IT dept wants consideration amount in 26qb to be equivalent of property value
    2) will it be wrong to pay TDS at once (at start) for complete property value even in case of installments? (ultimately IT Dept is requiring 1% TDS on property value, how does it matter if there are multiple TDS for every payment or single TDS for complete amount)
    3) The TDS page has option of multiple parties as buyers, but it does not ask for details of party 2 or 3 .
    a) Can the payment be made in the name of 1st applicant of property?
    b)what is the significance for doing TDS by every party in buyer side?
    4) there are 3 dates that are required to be filled
    a) booking/ agreement date
    b) payment date
    c) tds date
    please let me know following
    a) in case of payment in tranches : which date shall be selected as payment date in 26qb, if all 4 payments are at separate dates (over a period of 1-2 months) . is it the chq clearance date OR registration date when the agreement is legally registered?
    b) what is TDS date? is it date on which 26qb is filled OR date of payment of money to seller?
    hope my questions are clear and will help others on this blog to clarify their doubts as well.

    regards…Vishal

    Reply
    • August 5, 2013 at 6:50 PM
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      Hi Vishal,

      Find the answers in the sequence of your queries.
      1. Provide Full Consideration value and select “Installments” in Payment Type section your issue will be resolved.
      2. I can’t say whether it’s wrong or right, but as per the provision you are required to pay the TDS before releasing any installments.
      3. a) You can, but in case there are multiple buyers then you need to file 26QB separately. b) This you need to ask the Dept 🙂
      4. a) You can select booking date. b) this is the date when you are paying the tax i.e. the date on which 26QB is filed.

      Reply
      • August 10, 2013 at 7:06 PM
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        thanks a ton Soubhgya

        your reply is very helpful… one more thing… if there are 3 buyers in the agreement (each contributing 33%)… then shall the consideration amount to be filled by each one in their TDS shall be 33% of property value?

        thanks
        Vishal

        Reply
  • August 4, 2013 at 12:10 PM
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    Hi Soubhagya,
    Many many thanks on the wonderful blog. I have couple of questions on Form16B that you attached.
    1) Form16B contained a row for “Certificate No:”. What do I need to fill it with?
    2) I have given multiple installments to builder. So I had done TDS multiple times and have multiple challans. Do I need to give multiple Form16B’s or I can comprehend all the transactions in a single Form16b ?
    3) The “Unique acknowledgement numnber” that need to be filled in the form is nothing but “E Tax confirmation Number” from Form26QB?
    -Divakar

    Reply
    • August 4, 2013 at 10:00 PM
      Permalink

      Hi Divakar,

      Thank you for this appreciation. Find below answer in sequence to your queries;
      1. You can leave it blank.
      2. Yes! It should be multiple.
      3. Yes! You are right.

      Reply
      • September 6, 2013 at 7:11 PM
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        Dear Sir,
        I have completed the payment process by generating 26QB and bank transfer.
        I understand that I have to make available to the seller the completed form 16B WITHIN 7days of tax payment.Is form 16B is system generated from TRACES or I have to fill-up manually down loaded hard copy? Pl advise me on this.

        Reply
        • September 6, 2013 at 8:18 PM
          Permalink

          Hi Balakrishnan,

          You can file offline form 16B with the downloaded copy.

          Reply
  • August 5, 2013 at 11:32 AM
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    Hi Soubhagya,

    Could you please help me with my situation. I know some of the queries are repeated but a response from your end would give me clarity:

    I am buying an apartment worth around 57/- Lakhs in agreement value
    – We are two buyers me an my wife and two seller [seller & his wife]
    – I have paid a token amount of 50,000 on Jul 2 &
    – Another Token amount of 1.5 lakhs on July 10th
    – We would be paying 25 lakhs to the seller
    – 30 lakhs of which will come from Bank loan.

    Some queries:
    ————_
    1> For the token amount transferred [50,000 & 1.5 lakhs], do I need to create 2 challans by submitting Form 16B for each of the installment already made.

    As read ‘Payment has to be made within seven days of the end of the month in which payment to the seller has been made’. Would it cause issues/add any interest if I pay it at the earliest? or in this case would be good if I complete it before 7th of August

    2> Both of us have a Joint account from which we would be disbursing the 25 lakhs. Would it be ok to make two challans:
    – 1 with my name/PAN & sellers name/PAN [ amount 10 lakhs]
    – 1 with my wifes Name/PAN & Sellers wifes/PAN account [15 lakhs]

    3> Regarding the bank loan amount [30 lakhs]? Is it ok if we make one chalan on mine or wifes name? OR do would you suggest to break it too as before [15 +15]?

    4> Do we need to deduct first and provide the bank with the challan and bank will then give the loan amount to Seller?

    5> Last but not the least .
    I understand this is ‘99% to the seller 1% tax’, so for example in my case buyer would be paying a total of 57,000 as tax [1%], so as per the agreed value of 57 lakhs, Buyer would have to pay “57 lakhs – 57,000” to the seller. Right?. Also seller based on the TDS forms can claim the TDS amount of Rs. 57,000k later

    Thank you in advance for your time. Really appreciate it.

    Reply
    • August 5, 2013 at 6:30 PM
      Permalink

      Hi Kishan,

      Find below answers in sequence to your queries.
      1. Yes, you can. As of now I have not seen any interest is levied by Dept, but you check with them once.
      2. You need to go with 2 challans each i.e. int total 4. First figure out you r proportion of ownership and basis the same you and your wife can file 26QB separately for the respective sellers (husband & wife)
      3. better you divide it if your spouse is a co-holder into the lon.
      4. This you can check with the bank. What I have seen, in such case each bank has their own clarifications.
      5. Yes! your understanding is absolutely right. 🙂

      Reply
      • August 6, 2013 at 9:53 AM
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        Thank you Soubhagya for your prompt response. It has helped me understand the new Tax/Process better. Have a great day ahead.

        Reply
        • August 6, 2013 at 9:57 AM
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          Thank you Kishan.

          Reply
          • August 8, 2013 at 4:11 PM
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            Hi Soubhagya,

            Earlier questions wer from the buyer perspective. I have some queries from the ‘Seller’ perspective.

            Example Scenario:
            For a 57 lakh house, buyer would pay 57000/- as tax, fill 26QB & furnish 16B to the seller. So 3 questions:

            1> With the Form 16B [TDS certificate] provided by buyer on the sale amount [i.e 57 lakhs], How and When can the seller claim this 57,000/- amount back?

            2> Would the seller be able to claim the whole amount as the tax is already paid by buyer
            [ or in a scenario where seller is buying a new house with this sale]

            3 > So the total amount received by Seller is (57 lakhs minus 57,000). So isn’t there a possibility of the seller passing it to buyer i,e ask buyer to pay (57 lakhs plus 57,000)?

            4> For a house which is co-owned [seller & his wife], what would be the process if one them don’t have a PAN card. Would it be ok to pay the 1% on just one persons PAN ?

            Generic queries ..
            – Is this tax formulated with an intention to add new additional tax or to ‘correctly track the 50 lakh plus transactions'[ 99% to seller & 1% Tax] with a the seller having an option to claim the entire 1% amount back?
            – with this tax people would try to show the Price less that 50 lakhs [eg: show price as 49.5 lakhs] to save tax. Are there any appropriate measures from Govt to tackle this?

            Sorry for a lot of queries in one go 🙂

          • August 8, 2013 at 7:11 PM
            Permalink

            Hi Kishan,

            1. It is when the the seller files his/her annual IT retruns.
            2. It depends on whether seller gets any short term or long term gains out of such sale, then basis that he/she will be able to claim any eligible refunds.
            3. I shouldn’t comment anything here 🙂
            4. As I understand 20% will get levied for the co-owner, but I can’t say anything pertinent if IT Dept charges 20% for the whole transaction even.

            Answers to your other questions;
            – Yes, it may be one of the ways to track such high value transactions.
            – These days Govt in his own mood 🙂 Let’s see how govt is going to track such manipulations.

  • August 7, 2013 at 1:02 PM
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    Sir,
    I am buying property worth Rs.87 Lacs from seller under clp plan,seller has paid Rs.48 Lacs to the builder till date rest to be paid as when demanded by builder.I am paying Rs.48 lacs to seller.Do i have to deduct tds @1%.I f yes On which amount 48 lacs or 87 lacs.

    With warm wishis.Your early reply is highly appreciated.
    Doing good informative job,keep it up.
    Manoj Sahjwani

    Reply
    • August 7, 2013 at 1:18 PM
      Permalink

      Hi Manoj,

      In this case you need to deduct 1% on whole Rs. 87Lacs. But I would suggest you to write a mail to tininfo@nsdl.co.in and explain your case, they will revert you with a pertinent solution for this.

      Reply
  • August 8, 2013 at 8:03 PM
    Permalink

    Hi! Soubhagya
    Thanks for crisp information which has already cleared some of my doubts.
    Request your feedback on my case.
    I n my wife are purchasing a flat from a couple who are Australian citizen of Indian origin and our long term friends.
    Property value is 80l.
    1.What is applicable TDS is it same as 1% or 20%
    All of us have PAN no.
    2. In case TDS is as high as 20% then is there a way to deposit actual applicable long term capital tax after indexing and investment of the amount in gov. Bonds.

    Thx n rgds
    MM

    Reply
    • August 8, 2013 at 9:44 PM
      Permalink

      Hi MM,

      Remember! as per rule, on sale of properties by NRIs are subject to TDS of 20.60% (in case of LTCG) or as per tax slab (in case of STCG) on the gain amount. Here buyer (you) of the property is obliged to withhold the tax at source.

      If your NRI friend wants to pay low/nil tax he must have to produce tax exemption certificate which he needs to get from the same jurisdiction that his PAN belongs to through an application. He will have to show proof of reinvestment of capital gains or if he is planning to buy another house, he would have to show the allotment letter or payment receipt. He may also submit an affidavit stating that he would invest the capital gain amount in to bonds under section 54EC.

      Reply
  • August 9, 2013 at 12:51 PM
    Permalink

    Hi Soubhagya !

    Really impressive work that u r doing. I want to know we are having two sellers & two buyers but the problem is that one of our buyer is not having PAN. In that condition what we have to do…

    Thanx

    Reply
    • August 9, 2013 at 1:33 PM
      Permalink

      Hi Deepak,

      Here my only suggestion to you is, get the PAN for other buyer asap. It doesn’t take more than 13-15 days to get a PAN. You can apply it online or contact any agent.

      Reply
  • August 9, 2013 at 2:24 PM
    Permalink

    soubhagya

    The whole scene is that we did the registry and transfer the payment to the seller a/c.
    1. Is the TDS deducted to be depend upon the amt transfer to seller’s A/c (each)?
    Example:- Transfer Amt to A is 10,00,000.00 & to B is 1,00,000.00 then the TDS deduction will be 10,000.00 & 1,000.00 respectively.
    2. I had generated the Acknowledgement no. at once (didn’t make a payment of TDS ) but i did a mistake in that and i want to generate a new Ack. No. so, Can I ?
    3. Amount Consideration = total Amt of Property / total amt of property + stamp paper+stamp duty.
    4.Total Amt Payable = Total Amt of Property – TDS
    5.Amount Cr =Total Amt of Property – TDS

    Reply
  • August 9, 2013 at 2:28 PM
    Permalink

    Can u give me your contact number.
    If not here, then can you please give me a ring on 9250458458.

    I have some other problems also regarding the same which i cant write over here so will u please help me out and give few minutes from your valuable time.

    Thanx & Regards
    Deepak Agarwal
    9250458458

    Reply
  • August 9, 2013 at 2:47 PM
    Permalink

    What about 16 B it will be downloaded from the site or we have to fill it manually ?

    Reply
  • August 9, 2013 at 3:45 PM
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    HI Soubhagya,

    I m waiting for your helpful reply.

    Thanx

    Reply
    • August 9, 2013 at 6:14 PM
      Permalink

      Yes! it’s manually until some online option comes.

      Reply
  • August 10, 2013 at 7:07 PM
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    thanks a ton Soubhgya… you are doing a great job for others…

    your reply is very helpful… one more thing… if there are 3 buyers in the agreement (each contributing 33%)… then shall the consideration amount to be filled by each one in their TDS shall be 33% of property value?

    thanks
    Vishal

    Reply
    • August 10, 2013 at 7:59 PM
      Permalink

      Hi Vishal,

      Each of the buyers need to enter consideration amount in full not 33%, but TDS charged by each of them will be 1% of 33% of the consideration amount.

      Reply
  • August 13, 2013 at 9:21 AM
    Permalink

    Hi,
    Thanks for the great blog!
    I have the following query and appreciate your help.
    My wife and I are buying a property from another couple with consideration amount around 1cr and bank loan in 50 lakhs. Everyone has PAN number.
    1. Shoud I split the sale amount and pay to the seller or is it ok to get one DD for seller 1(one from bank to seller1)? What is the general practice?
    2.If I make payment to one seller, it is enough to generate one TDS challan since all payments will come from my wife’s account at this point. I thought this will the whole process simple.

    Reply
    • August 13, 2013 at 9:30 AM
      Permalink

      Hi Raj,

      I don’t see there is any problem in making payment to seller through one instrument and splitting the sale amount while filing the challan.

      And its advisable to split the TDS amount while making payment.

      Reply
  • August 13, 2013 at 1:00 PM
    Permalink

    Hi Soubhagya,

    I was filing the TDS on property via Form 26QB. I completed the submission process and I got the E-Tax confirmation number as well. After that when I clicked on the button “Submit To The Bank” then it forwarded me to the bank website. I tried to enter the login credentials but it failed due to wrong password in first 3 attempts. In 4th attempt it succeeded but it let me logged-in on the home page of the bank website rather than eTax payment section.

    Now could you please help me here and advise what should I do?
    1. Should I fill the Form 26 QB again and then get redirected to bank site (in that case what will happen to earlier filled form 26QB(and its E-Tax confirmation number) for which i was unable to pay due to the login issue?)
    OR
    2. Is there any way i can try and pay online using the already generated E-Tax confirmation number while filing the form 26 QB. if yes, what link etc, please?

    Please suggest!:)

    Thanks a lot in advance,

    Saeed

    Reply
    • August 13, 2013 at 2:07 PM
      Permalink

      Hi Saeed,

      Since the payment has not been executed you can try to fill fresh form and proceed.

      Reply
      • August 13, 2013 at 11:22 PM
        Permalink

        Thanks Soubhagya for your reply !

        I actually used the same confirmation number and via TIN site, it redirected me to net banking of my HDFC bank and was able to pay. It generated counterfoil for the same E-Tax confirmation number.
        I hope it is fine. correct?
        Thanks
        saeed

        Reply
        • August 14, 2013 at 12:02 AM
          Permalink

          Hi Saeed,

          Payment done successfully with proper challan, right? be happy then 🙂 no worry.

          Reply
  • August 13, 2013 at 6:14 PM
    Permalink

    Hi Soubhagya,
    Great blog! Very informative…
    Yet I wanted to clarify some details before making the payments. Here is my case.
    Have purchased flat for 75 Lac in name of my wife & me. The said flat was jointly owned by father & son. Of this have made the installments in following manner; 1 Lac(4July)+5 lac(16July)+16 Lac(2 Aug). The remainder 53 lac is to be paid as loan from bank. So my queries are as follows;
    1)The 1% TDS payments will have to be made for each installments paid?
    2) Will any penalty be levied on my TDS for July installments, which I am yet to pay?
    3)The entire payment was done by me to the son only. So how many challans need to be made for each installment?Who needs to pay TDS both me & my wife or only me? What should be selected for”Whether more than one Transferee/Buyer*”
    4)Total Value of Consideration is the value of flat mentioned on agreement registered?
    5) When should the TDS on 53 lac be paid? Before or after disbursement?
    Thanks in advance for your speedy response.

    Vinayak

    Reply
    • August 13, 2013 at 7:21 PM
      Permalink

      Hi Vinayak,

      Find the answers in the sequence to your queries;
      1. Yes, TDS should be deducted for each installments
      2. I have not seen anyone have been penalised for this, (but can’t say). So don’t delay much and make the TDS payment separately for each installment made so far asap. You may ask the seller for refund of TDS amount if you pay from your pocket or adjust it from the future payments if any.
      3. Better file the challan basis the proportion of ownership of both buyers and sellers. You need to select YES as more than one transferee/buyer
      4. Yes
      5. better make it on the same day.

      Reply
  • August 17, 2013 at 10:25 AM
    Permalink

    Hi Soubhagya,
    Great blog! Doing great work.

    I have a query w.r.t to the payment of TDS for the flat I am purchasing.

    Flat amount ; 60 lakhs , Own contribution – 30 lakhs & Bank loan 30 lakhs.
    We have made the own contribution in the form of 6 different payments:
    50,000 [jul 5] + 2.5 lakhs [ jul 12] + 3.5 lakhs Aug [Aug 9] + 3.5 lakhs[Aug 9] + 10 lakhs [Aug 16] + 10 lakhs [Aug 16] —> Total 30 lakhs

    We are going for direct Sale Deed [Instead of Registering ‘Agreement to Sale’ and then ‘Sale Deed] . I have 2 main queries:

    1> Is it ok if I create two challans for 30 lakhs[own contribution], 30 lakhs [bank loan] each instead of making 6 challans. The govt would be looking at 1% tax for the entire transaction or would it specifically check whether tax is paid for each transaction.

    2> Also as we have decided to go for Sale Deed directly, we have not registered ‘Agreement to Sale’ because of which I don’t have a ‘Date of agreement’ to be entered within the 26 QB.
    Would it be ok to mention the date of agreement as the date of first transfer [[jul 5] or do we need to register the ‘Agreement to Sale’ & put that date within the 26QB form?

    3> Also the Bank would disburse the Loan amount only after the TDS payment confirmation for the whole amount is provided. So basically we would have to make the 30 lakhs challan for the loan before it is disbursed from the bank. Is this fine?

    Thank you for your time.

    Reply
    • August 17, 2013 at 8:32 PM
      Permalink

      Hi Tutu,

      Please find the answers inline to your queries.
      1. I can’t say whether your proposition is ok or not, but I can say it is ok if you make separate challans for all those payments made so far.
      2. Yes, you can keep the date as date of booking i.e. July 5th.
      3. In such case you can deduct TDS and ask seller for refund.

      Reply
  • August 17, 2013 at 3:16 PM
    Permalink

    Hi Soubhagya,
    I have purchased a flat owned by a company. I have paid 20% of the amount without deducting the TDS in 3 installment last month. Rest 80% will be paid by bank. Now bank is asking for the challan of full TDS deducted i.e. TDS deducted on total agreement ment value for loan disbursement.
    1. I want to know that can TDS be paid in advance?
    2. Since flat is name of a company, while filling 26QB which option to be selected under “Tax Applicable” Row (1st Row)?
    3. Since i hve to pay advance TDS, what will be the “Date of Payment to the Transferor/Seller”?

    Thanks n regards
    Adarsh

    Reply
    • October 13, 2013 at 1:30 PM
      Permalink

      Hi Adarsh,

      Please find the answers in sequence to your query;

      1. You may deduct, but not pay in advance.
      2. It should be as per the status of the Deductee
      3. Refer Ans. 1

      Reply
  • August 19, 2013 at 9:20 AM
    Permalink

    Hi Soubhagya,

    Thank you for extending a helping hand to all of us. Can I ask you some queries?

    For a 70 lakh house I need to pay 70,000 [1%] as TDS. I am taking a loan of 40 lakhs [Tax -40,000] & I have made my own contribution payment of 29,30,000 to the seller [ i.e after deducting the total TDS from sale amount].

    1> Now if I go online and try to complete 26QB with the rule of 1% per for every transaction it would come to Rs. 29,300 [as I have transferred after deducting the 1%], can I show that I have transferred 30,00000 to get the correct 1% TDS. If not what approach would be appropriate
    2> An restrictions as per the act which would prevent me in making 1 challan for 70 lakhs rather than making multiple based on each transaction?
    3> When I need to pay for the loan, it needs PAN & Address, just wanted to confirm. Does each bank/institutions have a PAN number ?
    4> If there are 2 buyer should I divide the bank loan amount and make challan for each or one would be enough?

    Best Regards,
    Rajeev

    Reply
    • August 19, 2013 at 2:56 PM
      Permalink

      Hi Rajeev,

      Find the answers inline to your queries;
      1. Since it was not required to deduct all the TDS at one go, but now to correct what has been done, you can raise one adjusted challan for the payment made so far i.e. 29,30,000 with 1% tds and once you get the bank loan then go from next TDS payment of Rs. 70k – 1% already declared in previous 26QB form.
      2. Since your payments are not lumpsum then better go for multiple challans as per the payment schedule.
      3. Yes, you need to divide it.

      Reply
      • August 19, 2013 at 5:04 PM
        Permalink

        My apologies. Let me elaborate my understanding for clarity . Are you mentioning to make total 3 Payments:
        1> 29,30,000 [29,300] for the amount already transferred
        2 > For Loan amount 40,00,000[ 40,000] &
        3> one extra for 70,000 [700/-] . But there wont be any transfer on this date to be added within ‘Date of Payment/Credit’ field of ‘Form 26QB’ . Would that cause issues?
        Or
        when filing the bank loan challan can I file it as 40,70,000 so that the % is tallied?

        One more query, when you file the TDS for the Bank then we need to put the PAN number of the Seller only right? & do we need to create multiple challans for the loan amount too if there are 2 sellers?

        Thank you for your time. Really appreciate it.

        Reply
        • August 19, 2013 at 6:03 PM
          Permalink

          Hi Rajeev,

          1. Yes
          2. Yes
          3. Or you can go with proposition of Rs. 40.70lac. I don’t think this will have any issue.

          Yes, you need to create multiple challans if there are more than 1 sellers. And divide the payment amount proportionately for sellers while creating the challan keeping consideration amount as full.

          Reply
  • August 19, 2013 at 5:43 PM
    Permalink

    Hi Soubhagya,
    Thank you for your help on this.
    I have a query and would need your views on it.
    Flat cost: Rs 1.34 crore
    I had booked a flat on May 10th, 2013 giving Rs. 5 lacs (2.5 lacs each, as there are 2 owners) and there after I made the payments in the following ways:
    June 11th – 25 lacs (12.50 lacs each)
    June 17th – 20 lacs (10 lacs each)
    July 5th – 20 lacs (10 lacs each)
    Aug 14 – 40 lacs (20 lacs each)
    Aug 25 – 20 lacs (Bank Loan)
    Balance to be paid 4 lacs. I was thinking of deducting 1% of the total flat cost while the final disbursement and pay the balance amount to the seller. Do you think this is ok?
    Please let me know about this.
    Thanks,
    Sunny

    Reply
    • August 19, 2013 at 9:48 PM
      Permalink

      Hi Sunny,

      Can’t say whether it will be ok or not, but I must say it will be ok even advisable to file form 26QB for all the transactions separately.

      Reply
  • August 20, 2013 at 2:14 AM
    Permalink

    We sold our property and the buyer has not paid the TDS yet. What should we do now. Inspite of reminding by us and promises made by the buyers, they did not pay it yet. The sale was done on Aug 2nd 2013. The registrar did not make sure it was paid either. How is this going to impact us as we are the seller. Is there anything else we can do to ensure the buyers pay the TDS

    Reply
    • August 22, 2013 at 8:54 AM
      Permalink

      Hi Darshom,

      Here I would suggest you to write a mail to tininfo@nsdl.co.in and explain your case, they will revert you with a pertinent solution for this.

      Reply
  • August 20, 2013 at 8:35 PM
    Permalink

    Hi Soubhagya,

    Kingly guide us with this situation. We sold our flat on Aug 2nd 2013. the buyer was informed that the TDS needs to be paid before registration. But on the day of the sale he said the website was down and could not do it and promised it will be done at the earliest. The registration is done and its been 2 weeks, the buyer has not paid the TDS and not provided us the challan. What should we do now? If the buyer does not end up paying it, what will happen to us? Also can you suggest how to tackle this problem. Kindly respond.

    Reply
  • August 21, 2013 at 7:10 PM
    Permalink

    Hi Soubhagya,
    Thanks for this great post. It cleared most of my doubts.
    But here’s my situation:
    I have booked my flat of agreement value Rs.50,51000 in May 2013. Have paid initial 15% amount of Rs.7.5lakh on 04th June not knowing about this new TDS rule.
    So i haven’t deducted any TDS till date. The registration process is completed and the builders next demand letter has been received.
    Now the for the remaining amount i have taken loan from SBI RACPC (Pune Swargate Branch) which is going to disburse the payment soon.
    I have tried to tell the Bank to deduct 1% TDS from the disbursement amount. But the bank has refused to do so saying that they have to disburse all the amount stated in the Demand Letter.
    I have also tried to request the builder a new demand letter adjusting the 1% TDS amount but even they have refused to do so.
    Now i am really stuck as how i am going to pay the TDS?
    The builder has however said that they will credit our account with the TDS amount after i have given them the challans?
    Would it be advisable that i pay the TDS right now from my pocket and ask the builder to reduce the TDS amount in the next demand letter & from the total payment due?

    Please advice.

    Thanks & Regards,
    Amit

    Reply
    • August 22, 2013 at 9:03 AM
      Permalink

      Hi Amit,

      Yes you had to deduct the TDS, but you didn’t do. Anyways you can do that right now from your pocket and ask the seller for a refund. Many such cases sellers (reputed builders/sellers) have refunded TDS amount to buyers, but I can’t guarantee this.

      At least take a mail confirmation from builder/seller for such refund commitment.

      Reply
      • August 22, 2013 at 3:42 PM
        Permalink

        Thanks Soubhagya for your advice.
        Currently it seems very difficult to get the SBI bank to cut the 1% TDS from disbursement amount, as there are no guidelines from the Government yet.
        Is it advisable that i let the bank pay the disbursement amount according to the demand letter and then i later pay the 1% TDS online from my pocket every time and ask the builder to credit it to my account?

        Reply
        • August 22, 2013 at 5:13 PM
          Permalink

          Yes! This will also work out, but make sure you get your expenses from the builder.

          Reply
          • August 22, 2013 at 7:22 PM
            Permalink

            Thanks a lot Soubhagya.
            My builder “Kumar Properties” is a reputed builder in Pune, so i think that i can go by their word.
            Hopefully this TDS won’t be too tedious for me 😉

          • August 22, 2013 at 10:32 PM
            Permalink

            Then “ALL IZZ WELL” 🙂

  • August 25, 2013 at 11:13 PM
    Permalink

    Hi Soubhagya,
    Thanks a million for this very informative post.
    Keep up the good work.
    I have one question for you:
    We have made a payment of 2 lakh and 5.5 lakh (different cheques from the same account but on the same date i.e 05th July) against a property which has been registered against me and my husbands name. The property agreement value is greater than 50 lakhs.
    We have not deducted any TDS on this amount as we were unaware about the rule.
    Now do i have to fill 2 separate TDS challans for both the transactions for both of us i.e in total 4 challans with 50-50 share?
    Or can i fill only one challan for total of 7.5 lakh against any one of us buyer?
    Please advice?

    Also in our case what should be the “Date of Tax Deduction*” while filling the form 26QB?

    Thanks & Regards,
    Rohini

    Reply
    • August 25, 2013 at 11:54 PM
      Permalink

      Hi Rohini,

      Better you go for separate challans for Rs. 2Lakhs & Rs. 5.5 lakhs with 50-50 share as you indicated. For tax deduction date you can put cheque date for payment.

      Reply
      • August 26, 2013 at 10:51 PM
        Permalink

        Thanks a lot 🙂

        Reply
        • August 27, 2013 at 8:13 AM
          Permalink

          Most Welcome Rohini!

          Reply
  • August 28, 2013 at 12:17 PM
    Permalink

    Hi Soubhagya, Thanks for load of information. I am a NRI and I have brought a property in joint name of my wife wherein I will pay all the initial payments and later loan also.
    1)In this case is it required to fill form 26Qb for each and if yes what would be the share of TDS. Also I have NRE/NRO a/c while my wife still have normal a/c .
    2)before reading your blog,I tried to fill 26Qb online as single buyer and received acknowledgement but bank site did not allow transaction (may be due to time limit) , In this case should I fill form again or there is way to start as per acknowledgement number.
    Thanks in advance.

    Reply
    • August 29, 2013 at 6:57 PM
      Permalink

      Hi Rakesh,

      Answers in the sequence to your queries;
      1. You need to deduct at 1% and it should be in the same proportion of ownership. Please note NRI shouldn’t hold resident account, thus all the payments needs to be done from your NRO account. In case your spouse (I guess she also hold the status of NRI), she must close her resident account and open NRI account.
      2. Try filing a fresh form.

      Reply
      • August 30, 2013 at 10:18 PM
        Permalink

        Hi Soubhagya, Thanks for reply. Few more question pls…
        1) Since my wife(NRI) is not working/non-earning member in this transaction, Is it allowed to pay TDS from my a/c for both of us.
        2) I am paying TDS for initial payment to seller(re-sale),so will TDS be payable on subsequent payments released by Bank.As per Bank they do not deduct TDS.( One of my friend into accounts is of view that TDS should be deducted only once during payment to seller since Builder payment is for services rendered)
        3) What is the “total value of consideration ” and “Date of Agreement/Booking” in my case i.e. re-sale.

        Regards.

        Reply
        • September 3, 2013 at 10:15 PM
          Permalink

          Dear Sir,

          Pls reply to my last post.

          Thanks.

          Reply
        • September 4, 2013 at 7:49 PM
          Permalink

          Hi Rakesh,

          It seems I missed to see your question! Anyways.
          1. Since all the payments have been done by you (I assume), then in that case there is no issue, you can go and pay TDS from your account. But I suggest you to cross check this once with NSDL-TIN. Send them a mail, they will guide you.
          2. Though it has been said in the provision that “in case of financed property, bank can deduct TDS”, but banks seems to be not in a mood to take this headache so they are clearly saying no to this. Ok! no issue, in that case you deduct TDS. This will have no problem at all.
          In case of installment payment you need to deduct TDS at every stages not one shot.
          3. You will be in a better position to tell what is the total consideration value :-). This is the agreed price that seller is ready to sell. Since you are paying it in installment, in the place of “Date of Agreement/Booking” put first payment made date as date of booking.

          Reply
          • September 6, 2013 at 11:55 AM
            Permalink

            Thanks a lot..

  • September 2, 2013 at 11:46 AM
    Permalink

    Hi,

    I hAve paid the 1% TDS online. When i submitted the challan copy my builders says that he needs a printed version of Form 26QB and Form 16B. I can get the Form 16B from the traces website however how do I download the Form 26 QB as i did not get any option earlier to get a print copy? Please let me know if there is a way to download it.

    thanks
    Sunny

    Reply
    • September 2, 2013 at 6:59 PM
      Permalink

      Hi Sunny,

      No worry! you can get the copy of 26QB. For this you need to talk to your bank, they will guide you how to download it from your net banking else they will send the copy to you. For form 16B, I have no idea whether IT dept started giving the online option to pull the certificate.

      Reply
      • September 7, 2013 at 10:30 AM
        Permalink

        Thanks for this clarification on getting a copy of completed Form 26QB from Bank.I have the same issue on my earlier payments.
        Regarding Form 16B I understand this facility(downloading online option)is not activated.Until the dept comes out with this arrangement we may have to issue the Form 16B filling up all details manually.Hope my understanding is correct.

        Reply
        • September 7, 2013 at 2:11 PM
          Permalink

          Yes! your understanding is correct.

          Reply
  • September 3, 2013 at 9:40 AM
    Permalink

    Dear Soubhagya,
    Good job you are doing .please answer my following Q
    1.buying property worth 47 L have already paid 25L before june 13 but now do i have to cut Tds ? As with S.tax value which is 3.09./. exceed 50L does it fall in that category?
    2.3buyers but paid by my mother who is the first buyer so can generate 1 challan?
    3.another property worth 84 l only 1210000/-remains to be paid after this finance bill announed .now have to pay last installment of 1255000/- with the tax what should be tds amount?
    I have never come across such a wonderful site before

    Reply
    • September 3, 2013 at 12:34 PM
      Permalink

      Hi Sangeeta,

      1. Services tax forms a part of total consideration for calculating TDS. Thus property becomes plus 50Lacs. TDS will levy here.
      2. Since all the payments have been done by your mother, she can alone deduct the TDS.
      3. Whatever have been paid before June 1, 2013, no TDS will be applicable there, you need to deduct TDS on the remaining balances.

      And thank you for appreciating 🙂

      Reply
      • September 7, 2013 at 10:51 AM
        Permalink

        At the outset let me congratulate you for this outstanding service.I have a query on applicability of TDS on service tax element.
        My builder(a reputed group of Companies)advises me not to deduct TDS on service tax element as this is being paid by him to Government Authorities and should not form part of purchase consideration.I need your input on this quoting relevant section of the IT Act/Rule to counter my builder’s view.I do not want to run into problems later with Tax authorities on non-compliance.Pl advise.
        Once again thanks a lot for your valuable comments/guidance.

        Reply
        • September 7, 2013 at 2:17 PM
          Permalink

          Better write this to NSDL. They will confirm you whether ST has to be considered for total consideration for TDS purpose.

          It will be great if you share the response you get from them. What i know is ST has to be taken into consideration.

          Reply
  • September 4, 2013 at 1:21 PM
    Permalink

    Hi Soubhagya ,

    Thank you in advance for your time.
    I want information about a situation being faced from my end.
    – For a 70 lakh flat, after consensus on the ‘Draft Agreement’ [not registered] , I had paid 30 lakhs from my end and is going to avail 40 lakh as loan
    – As the bank need the user to have the challan ready for the complete amount before disbursing the loan, I paid the challan of 1% [i.e 70,000]
    – Currently the Seller is acting indifferent and delaying the registration giving illogical reasons.

    My questions is — If I deal does not go through, is there any provision for me get the 1% TDS paid.

    Reply
    • September 4, 2013 at 8:04 PM
      Permalink

      Hi Raja,

      Technically the TDS paid amount is considered as seller’s money. Please recall the statement given in the provision i.e. “buyer of the property needs to deduct the said TDS before making the payment to the seller”. Here I would like to highlight the words BEFORE THE PAYMENT TO SELLER. But you have paid all the TDS at one go (actually it had to be in the sequence of various payments made and payment should have been released with net of TDS amount). There may be some other alternatives, but what I can suggest you is that talk to the seller and try to resolve this matter mutually.

      Reply
  • September 5, 2013 at 5:40 PM
    Permalink

    Hi Soubhagya,

    Great Job!! Really appreciable!! My query is

    I have bought a under construction property of Builder ‘B’ from seller ‘S’ before June. So,
    1. Amount in BBA with builder is 99L approx. (44L paid by seller ‘S’ to Builder)
    2. Amount in ATS it 1.02cr approx. (44L+3L premium, I paid to ‘S’)
    3. Also, there is some increase in service Tax and effective amount would increase in both the above cases
    Now after June, I have paid an installment to Builder (say 6L).
    Q1. What would be Total consideration in 26QB in this case? Or it is just fine to mention ATS amount of 1.02cr as long as I am giving installment details correctly?
    Q2. My mother is co-applicant in property and loan as well, she made most of the payment directly to seller ‘S’ before June. This installment of 6L is through home loan and I am responsible for EMIs. So, is it fine if we fill only one 26QB in my name only?

    Reply
  • September 6, 2013 at 5:31 PM
    Permalink

    Hi Soubhagya,
    Could you please help
    I have bought a under construction property of Builder ‘B’ from seller ‘S’ before June. So,
    1. Amount in BBA with builder is 99L approx. (44L paid by seller ‘S’ to Builder)
    2. Amount in ATS it 1.02cr approx. (44L+3L premium, I paid to ‘S’)
    3. Also, there is some increase in service Tax and effective amount would increase in both the above cases
    Now after June, I have paid an installment to Builder (say 6L).
    Q1. What would be Total consideration in 26QB in this case? Or it is just fine to mention ATS amount of 1.02cr as long as I am giving installment details correctly?
    Q2. My mother is co-applicant in property and loan as well, she made most of the payment directly to seller ‘S’ before June. This installment of 6L is through home loan and I am responsible for EMIs. So, is it fine if we fill only one 26QB in my name only?

    Reply
    • September 6, 2013 at 6:22 PM
      Permalink

      Hi Praveen,

      Sorry I can’t give my view here. I suggest you to write this query to NSDL. They will help you out. With regards to your query number 2, you and your mother has to file form 26QB not by you alone.

      Reply
  • September 7, 2013 at 1:22 PM
    Permalink

    Hi Soubhagya,
    Need your help.
    Question 1
    I have purchased a property above 62L few years back with home loan and is under construction. Today I got a fresh demand and this time the 1% TDS comes into picture. All this while whenever there used to be a new demand, I used to send it to HDFC ( home loan) and they used to prepare a DD in name of the builder which I used to pay directly to the builder. Now the bank says that they will only disburse the amount after deducting 1% of the total demand and the that 1% will be paid by me. Now I understand this part due to new ruling, but my question is, does that mean that bank will now disburse 1 % less amount to me than what they had promised earlier when they entered into an agreement with me. My understanding was that bank will make 2 DD’s one will be directly for the builder (after deducting 1% from the amount demanded) and the second will be of the deducted 1 % amount which lender will give to the loan account holder which is me. The loan account holder will then pay the TDS and provide a copy of challan to the lender and the builder. Isn’t it correct.

    Question 2

    I have purchased a property for which I paying from self. I have opened a capital gain account and parked the funds which will go for this property as and when the demand comes from the builder. Now what is the process of TDS deduction here. I have got the demand from the builder which I will submit to the bank so that they release the amount in cheque favouring builder, so just like in above scenario, will they give me a separate cheque in my name for which I deposit the TDS amount and give a copy to both the builder and the bank. The only difference here is that this is my money and not a home loan.

    Please help.

    Rahul

    Reply
    • September 8, 2013 at 8:49 AM
      Permalink

      Hi Rahul,

      1. There is nothing new that banks always do their own as per their conveniences. Since the provision has already indicated in case of financed property bank can deduct the TDS, but it seems they do not want to take the headache as the rule is not compulsory for them. So it’s better you pay the TDS and pay the net amount received from bank as loan to seller.

      2. You can pay the TDS from your SB account, then take out payable amount from the CG account, pay the required amount to seller after deducting the amount that you have already paid as TDS. You can show the challan to bank as proof of payment of TDS. Alternatively ask bank first what needs to be done in such case, hope they will guide you.

      Reply
  • September 8, 2013 at 7:14 PM
    Permalink

    Hi,

    I have one query regarding 1% TDS on property:

    1. I got the demand from builder of suppose 6lacs, in that 3 lacs i had paid on 10th aug and rest of the (3 lacs – 1% TDS of 6 lacs) by bank on 20th aug.

    And I have genertaed one form 26QAB with total consideration of 6 lacs and payment date I have used is 20th aug.
    Is this fine or I have to do some rectification, problem was bank told they will deduct full 1% TDS when they will make the payment.

    Please clarify, although 1% TDS for 6 lacs i.e 6 thousand is deducted and submitted.

    regards,
    Prakhar

    Reply
    • September 8, 2013 at 9:10 PM
      Permalink

      Hi Prakhar,

      Since there are two different payments and dates are not same, better make 2 challans.

      Reply
      • September 9, 2013 at 3:15 PM
        Permalink

        Hi Soubhagya,

        I have generated one 26QAB form and form16B also for earlier mentioned issue,
        is there a way to rectify it or now I can’ t do anything.

        But the total TDS submitted is correct.

        Regards,
        Prakhar

        Reply
        • September 9, 2013 at 9:50 PM
          Permalink

          Hi Prakhar,

          If you have already paid the TDS, then I don’t think it can be rectified. Better write this to NSDL and explain the issue. Hope they will give some ways.

          Reply
  • September 11, 2013 at 5:38 PM
    Permalink

    Hi Soubhagya,

    Thanks for clarification.

    regards,
    Prakhar

    Reply
    • September 11, 2013 at 8:55 PM
      Permalink

      Most welcome Prakhar.

      Reply
  • September 16, 2013 at 6:02 PM
    Permalink

    Thanks for your useful information.
    1. We are three co- buyers of an under construction flat, but only my un-married daughter is paying 100%, and we old parents are not paying anything. From your above clarificatiom, I understand only my daughter has to fill Form 26QB and 16 B for payment of 1 % TDS.
    2. In this form 26QB, there is a question that asks “Whether more than one buyer … (Yes/No). What is to be written? I presume it should be Yes, as we were are technically three co-buyers.
    3. Suppose we the present buyers later become sellers and sell the under construction flat to one buyer Mr. X. Would he be required to likewise fill only one Form 26QB and 16B to deduct 1 % TDS from my daughter only? or three forms and mention our names as three sellers.
    Kindly enlighten.
    Regards
    DC Bhargava

    Reply
    • September 19, 2013 at 10:48 PM
      Permalink

      Hi Bhargava,

      Better file separate form 26QB so that all the present and future issue will be resolved.

      Reply
  • September 17, 2013 at 1:48 PM
    Permalink

    Hi,
    Thanks for sharing the notes. I have few queries which I need to ask:

    1) I have purchased an under construction property with value of property around 60 lacs. The agreement with the builder was done in May 2013. We had already paid a partial amount to builder before 1st June 2013. Please advise if I have to deduct TDS @ 1% for the balance payment I will be doing after 1st June 2013.

    2) We have queried it to builder, however the builder mentioned that the TDS will not be applicable for me as the agreement was done before 1st June. Please advise if this is correct and whether TDS is applicable at my end?

    3) Also, we have already done certain payments through our savings as well as through Bank to builder after 1st June 2013 and we haven’t made any TDS deduction in that case? Please advise how to follow just in case if the rule is applicable at my end.

    4) Lastly, we are 3 property holders (myself, my wife and my father). If TDS deduction has to be done. How this is done in joint property holder case?

    Thanks,
    Abhishek

    Reply
    • September 17, 2013 at 2:42 PM
      Permalink

      Hi Abhishek,

      Find below answers in sequence to your queries;
      1. If total consideration is plus 50Lacs, then you are required to deducted TDS on any pending or full payment on or after June 1, 2013. This is clearly stated in the said provision. In short, whatever you are paying on or after June 1, 2013 you need to deduct 1% TDS on the payment amount.
      2. Yes! TDS is applicable to you.
      3. Don’t delay, if you have not deducted any TDs, file the challan asap and talk to the seller for refund in case TDS are being paid from your pocket.
      4. You need to file separate challans for each on the buyers with the same proportion of ownership. Say for example your ratio is 33.33% each then whatever payment you are doing you need to calculate 33.33% of the amount and file challan

      Reply
  • September 19, 2013 at 10:25 PM
    Permalink

    Dear Soubhagya,
    As regards Amount Paid (to the seller) in Form 26QB, I understand from one of your replies that the demanded instalment amount is to be mentioned, and not after deducting 1 % TDS. i.e Rs. 5 lac and not 4.95 lacs.
    But if the builder has also demanded service tax of Rs. 12000, I understand no TDS is to be deducted from it; but do I mention Rs. 5 lac as amount paid or Rs. 5.12 lacs.; or service tax has nothing to do with this Form 26QB?
    In whcih case, I presume a separate cheque for service tax amount would be payable to the seller, along with cheque for instalment.
    KIndly confirm
    DC Bhargava

    Reply
    • September 19, 2013 at 10:45 PM
      Permalink

      Dear Bhargava,

      Service Tax forms a part of total consideration. You need to deduct TDS including such ST.

      Reply
      • September 21, 2013 at 12:29 PM
        Permalink

        Soubhagya Thanx a million for the great help you extend,

        I just have a query, I’m buying a proerty and my case is of two buyers and two sellers. all of them have PAN cards as explained above I hav to make 4 challans,

        1) However, the co-owner(seller 2) never filed her returns hence she doesnt want the 50% of the TDS to be remmitted against her PAN# instead 100% TDS to be remitted against her husband’s (seller 1) PAN#. Is this fine?

        2) if above is fine I have to make 3 chaalans right?

        Reply
        • September 22, 2013 at 9:16 AM
          Permalink

          Hi Manoj,

          It’s not her (seller 2) wish that she doesn’t want to file. IT dept has sent thousands of letter (also in process of sending more) to those who has PAN, but haven’t filed so far. If not today later she has to file for all those previous years. So it’s better to file now and have these tds payment procedures smooth.

          Reply
          • September 23, 2013 at 7:51 AM
            Permalink

            Subhagya,

            Can I do something like this
            remit 95% against PAN of seller 1 and remaining 5 % to seller 2
            to be on the safer side?

          • September 23, 2013 at 8:28 AM
            Permalink

            It is advisable to do as per the proportion of ownership by the sellers.

  • September 24, 2013 at 2:16 PM
    Permalink

    Hi Soubhagya

    I filled the FORM 26 QB and now my builder is saying I have to provide the FORM 16 B from TRACES (www.tdscpc.gov.in) but I am not able to get it download from there. Site is saying no entry found.

    1. Any idea by when it would be available over TRACES site.
    2. As you have stated above I need to fill it manually , then how to get Certificate No. (1st column in FORM 16B) and Traces logo etc.
    3. I payed the amount on 23rd sep’13 and also filled the same date for following two fields, is it OK ?
    Date of Payment/Credit*
    Date of Tax Deduction*

    Appreciate your quick revert as builder is pressuring me to provide FORM 16B otherwise they will charge interest on me.

    Thanks in well advance.

    Regards
    Jay Jain
    8826688841

    Reply
    • September 24, 2013 at 3:26 PM
      Permalink

      Hi Jay,

      Experience shared by one of the readers, “Traces site is now enable for downloading for16B”, you just need to put correct figures over there and use a clean browser.

      In case you are doing it manually, then no need for the logo or any certificate no, challan number is enough I guess & the dates you have put for “Date of Payment/Credit”, “Date of Tax Dedution” is correct.

      Reply
  • September 25, 2013 at 5:27 PM
    Permalink

    Thanks Soubhagya.

    I discussed with CPC cell and they informed me that it takes 7 to 10 days to get updated at Traces site. Now waiting for same.

    This is really a hectic process gov made for us. even everything is still not clear.

    Reply
    • September 25, 2013 at 6:06 PM
      Permalink

      That’s the plight! what to do.!

      But thank you very much for sharing your experience.

      Reply
      • September 30, 2013 at 12:22 PM
        Permalink

        Hi Soubhagya

        Today I am able to download Form 16 B from TRACES site but again new challenge .. The Amount showing there is Zero , even I paid the amount and have challan for same.

        Any idea what would be the issue…..

        Does any body face the same issue, pls suggest

        Jay Jain
        8826688841

        Reply
  • October 2, 2013 at 6:13 PM
    Permalink

    Hi Soubhagya,
    Thanks for sharing the info.Its really Great Help. I too have a few queries:
    1. While filling up form 26qb, I mentioned the 1% tds in decimal Rs.5891.59 since is wasn’t accepting a round up figure and accordingly an Ack no. was generated. However while making the online payment through SBI, the link didn’t accept the amount with decimal entry hence I made the payment of Rs. 5892 which was transferred successfully and a challan no was generated. My query is.. now that the tds amount on form 26qb and tds amt paid online are different, will there be a problem when I request for Form 16b, even though its just in decimals? I made the payment on 29.9.13.
    2. Date of payment/credit- I mentioned the date when the installment was released from the bank to builder-.i.e. 23.9.13- is this right?
    3.Date of tax deduction- online tax payment was done on 29.9.13, hence I mentioned this date- is this right?
    Thanking in advance.
    Regards
    Kelly

    Reply
    • October 2, 2013 at 7:21 PM
      Permalink

      Hi Kelly,

      Don’t worry! whatever you have done is correct.

      Reply
  • October 4, 2013 at 4:30 PM
    Permalink

    Hi Kelly

    In case of Bank paying to builder, who will pay this TDS (1%).

    I hope bank will issue the DD for full amount to Builder and then how are you paying this TDS.. ?

    How will you recover this…..

    Hope you would get my point .. pls suggest……

    One more point : which head you choose Under Challan .. like Income Tax or Others…..for paying the amount.

    Reply
    • October 4, 2013 at 5:52 PM
      Permalink

      Hi Jay,

      As shared by few readers, banks are bit reluctant to take the responsibilities of deducting TDS so they are asking buyer to show the challan for the TDS payment and basis the same they (bank) will issue DD or make payment to builder/seller net of TDS amount.

      Reply
  • October 5, 2013 at 12:37 PM
    Permalink

    Hi Soubhagya,

    Thanks for the great blog & active responses. I had couple of questions.
    1) Consider if I am making down payment to seller (2 Buyer / 2 Seller in agreement) however the agreed contribution for the down payment is 100% proportion from 1 Buyer & 1 Seller. In such case I need to generate 1 chalan for the single down payment made?

    2) Once I Complete Form 26 QB & make online Payment immediately, do I need to do anything else? like visit bank etc or can I consider payment goes to IT Dept through Bank used for online banking?

    Looking forward for your response.. thanks.

    Reply
    • October 7, 2013 at 11:27 AM
      Permalink

      Hi Nickson,

      1. Since the payment source & received by single party, then I think 1 challan is fine, but I suggest you to check with IT dept once.

      2. Once the payment of TDS is done, then you can generate from 16B and give it to seller.

      Reply
  • October 6, 2013 at 6:50 PM
    Permalink

    Hi Soubhagya,
    I have read the post and all the comments, and the content has been really helpful.
    But I still am not clear with the deal I am in right now.
    I am buying a flat with consideration amount 84.5L
    I have paid 10L on 3rd June, 2013 (no TDS deducted)
    Now, I will pay the rest of the amount through loan (67L) and balance ~7.5 myself on 10th Oct 2013.
    I understand, I can pay 1% TDS for first 10L online now.
    But, for the pending payment, the website does not allow me to deduct TDS for future date payments.
    Is it possible to pay TDS for a future date payment, so that I can give the TDS acknowledgement certificate at the time of payment, to seller and bank ?

    Reply
    • October 7, 2013 at 11:31 AM
      Permalink

      Hi Ankur,

      As I understand you can deduct TDS for the payment which has to be done on a future date.

      Reply
  • October 6, 2013 at 10:54 PM
    Permalink

    Hi Soubhagya
    Thanks for this blog. I bought a under construction flat and 70% is already paid by me and bank before 1 Jun 2013. The break up of the flat cost is as below
    Flat cost is 46 Lakhs
    Car parking 2 Lakhs
    other amenities 95, ooo
    Electricity, Water board deposit 1,85,000
    VA&Ser Tax 4.6 Lakhs
    Total amount to be paid to the builder is 56 Laks

    My questions are
    1. Should I need to pay TDS? as without service tax, VAT and Electricity/waterboard deposits it is <50 Lakh
    2. If I need to pay, should I need to pay for the amount which is already paid before 1Jun 2013?

    Thanks in advance for your clarification.

    Reply
    • October 7, 2013 at 11:36 AM
      Permalink

      Hi Blorebuddy,

      1. Can’t say about Electricity/waterboard deposits, but VAT is very well considered while charging TDS.

      2. You just need to pay TDS on the amount paid/to be paid on of after June 1, 2013.

      Reply
  • October 7, 2013 at 1:31 PM
    Permalink

    Hi Soubhagya
    Whether Interest is to be paid on delayed amount of tds under form 26QB

    Reply
    • October 7, 2013 at 8:13 PM
      Permalink

      Hi Praveen,

      Sorry I can’t say anything on this, but I suggest if you haven’t paid the TDS yet, don’t delay and pay it asap.

      Reply
  • October 7, 2013 at 2:25 PM
    Permalink

    Hi Soubhagya
    I have purchased flat having basic Cost Rs. 52,26 ,240 .
    I booked flat on 23 march 2013 and paid Rs. 11, 00 ,000 (own contribution) before 1st June 2013 .
    I did agreement on 4th June 2013
    and now paying reamining amount out of which (41 lack is loan amount )
    so Do I need to deduct TDS on remaining 41,26,240 (i.e. payment being made after 1st June 2013)
    or complete cost (i.e. 52 26 240) ?

    Reply
    • October 7, 2013 at 8:21 PM
      Permalink

      Hi Manish,

      You need to pay TDS on the amount paid/to be paid on or after June 1st, 2013; thus deduct TDS only on Rs. 41,26,240 not on whole amount.

      Reply
      • October 7, 2013 at 8:59 PM
        Permalink

        Thanks for quick Reply.This blog is very useful.

        Reply
        • October 7, 2013 at 9:02 PM
          Permalink

          Most welcome Manish.

          Reply
  • October 7, 2013 at 4:39 PM
    Permalink

    Hi Soubhagya,
    I have read the post and all the comments, and the content has been really helpful.
    But I still am not clear with the deal I am in right now.

    I am paying the cost of the flat on CLP Plan. Total cost of flat is about 60 lacs. About 30 lacs has already been paid before 01.06.2013, rest are being paid through bank loan. Latest demand is required to be paid by 08.10.2013. The bank has indicated that they will make the payment cheque after deducting 1%TDS from the demanded amount (Approx. 4.5 lacs, based on CLP Stage). Now, my query is WHO will issue challan to the builder—-me or the bank and if bank will do it on his own, if anything else (issuing TDS certificate to Builder, fiiling re-challan on bank’s behalf etc-etc) is required to be done by me. Please guide.

    Reply
    • October 7, 2013 at 8:56 PM
      Permalink

      Hi Deep,

      What I am hearing from the experience shared by many readers is that, though it has been said in the provision “in case of financed property, bank can deduct TDS”, but banks seems to be not in a mood to take this headache so they are clearly saying no to this.

      If you have the same situation, then no issue, in that case you deduct TDS. This will have no problem at all.

      Reply
      • October 8, 2013 at 1:26 PM
        Permalink

        Hi Soubhagya,
        Thanks for the reply. BUT, in my case, SBI is deducting the 1%TDS. Under such situations, My query is whether anything is left to be done by ME. and WHO will issue challan to the builder—-me or the bank

        Reply
        • October 8, 2013 at 3:56 PM
          Permalink

          You can issue the challan.

          Reply
  • October 10, 2013 at 5:06 PM
    Permalink

    Hi Soubhagya, I went through all FAQ’s . Its really great info. I have few doubts on this topic. I & my husband bought a property of 62 lakh as co-owners. Its a ready to move property. On 20th Sept’13, we paid the builder our own share & didnt cut any TDS. On 27th Sept’13, Bank loan was credited in builder’s account & 1% was given to us by cheque which got credited on 1st Oct’13 in my husband’s account.

    On 9th Oct’13, my husband paid TDS (50%) Share online on NSDL website. But he put the date of payment to seller as 2oth Sept’13 while date of Tax deduction as 9th Oct’13. what should be the correct dates? If the dates are wrong , what are the consequences. Now I have to pay my 50% share of TDS to goverment. What dates should i mention. Please help.

    Reply
    • October 30, 2013 at 10:08 PM
      Permalink

      Hi Manisha,

      I checked with other experts, as they clarified this is just a date mismatch, but TDS amount deducted and paid is correct so no problem.

      But ensure you should not repeat this mistake in future.

      Reply
  • October 15, 2013 at 1:49 PM
    Permalink

    Dear Soubhagya

    Appreciate the work being done by you on this blog.

    Me and my wife are purchasing a property for Rs 70 lakhs (from a single seller). We paid Rs 6 lacs as initial amount, Rs 8 lacs as second tranche, both from my wife’s account. Now we have the registration happening on 17th october, when the balance Rs 56 lacs will be paid by bank loan cheque.

    My queries-
    a) Can we have a single TDS payment for the entire Rs 70 lacs or is it mandatory to split it in 3 parts as per the actual payment made.
    b) Since both me and my wife are buying the property, there is no such split in ownership. Is it mandatory for both of us to split TDS payment. If yes, then how (if was thinking TDS on first 2 tranches by wife and 50:50 by both of us on home loan part ).
    c) The initial payment was made 2 months back. Will it imply interest. If yes how much?? How do i confirm this amount.

    Reply
    • October 15, 2013 at 5:31 PM
      Permalink

      Hi Sandeep,

      Find answers to your queries

      1. Better go with 3 challans
      2. You need to divide as per the proportion of ownership
      3. Sorry, I do not have any idea that how much interest will levy here.

      Reply
  • October 18, 2013 at 11:49 PM
    Permalink

    Hi,

    I have my mom as co-owner of property but she has her name just to substitute me in case i am out of town/country.
    As, she is retired she doesn’t have source of income other than pension.
    my Questions are:
    1. Should i fill two 26QB form even though i’ll be paying the whole amount
    2. if yes, how to enter TDS percentage? if my share is 90% and mom’s 10% shall i enter TDS %age as .9 and .1 respectively?

    Reply
    • October 19, 2013 at 1:14 AM
      Permalink

      Hi Sunny,

      As advised by the dept, it’s better to file separate form 26QB as per the proportion of ownership. Answer to your second question is.. Yes, it should be 9:1 proportion and TDS should be charged 1% for the respective value as per the ratio.

      Reply
  • October 20, 2013 at 10:50 AM
    Permalink

    Saubhagya – we have bought a flat. In that the single Seller has made 2 agreements. Sale and construction. Sale agreement shows 9 lk as this has been calculated on UDS. construction agreement shows 60 lks. Total 72 lk’s. Now as per the seller we need not to deduct 1 % TDS as the UDS value of property is just 9 lk’s less than 50 lks. on construction he says we cant deduct TDS and moreover he is paying service tax to the govt. No the problem is as a buyer I am buying a house worth 72 lks. I am confused what to do. Pl guide.

    Reply
    • October 20, 2013 at 11:57 AM
      Permalink

      Hi Riht,

      TDS is compulsory here. whether you have two or three agreement, but eventually property value crosses Rs. 50Lacs as a full consideration. Thus it’s your responsibility to deduct TDS on every payments you make on or after June 1, 2013.

      Reply
  • October 22, 2013 at 9:57 PM
    Permalink

    I have agreed to purchase an under construction property on resale at an agreed price of 80 lacs. The seller has pending installments of 10 lacs to promoter which is not yet due. In this case i have to pay 70 lacs to d seller and 10 lacs to the promoter. Till now i have paid 40 lacs without deducting TDS to d seller and applied for bank loan of 35 lacs which is sanctioned and will be disbursed after i will pay my whlole part i.e (80-35=55).i have some questions
    1. Is TDS applicable on resale of underconstruction property?
    2. If it is applicable, then i have to deduct tds on both seller and promoter on their consideration?
    3. Can i deduct TDS on 70 lacs and 10 lacs in advance before disbursement of bank loan?

    Reply
    • October 23, 2013 at 10:17 AM
      Permalink

      Hi Bhagirath,

      1. Yes TDS will be applicable
      2. It’s a debatable topic. Let me confirm you
      3. I think you need to show the challan of TDS deducted then only bank will release the disbursement.

      Reply
      • October 25, 2013 at 10:32 PM
        Permalink

        ACCORDING TO CA INSTITUTE WE ARE NOT REQIUIRED TO DEDUCT TDS ON AGREEMENT HOLDER AS HE IS NOT D OWNER OF PROPERTY. PLZ READ THE FOLLOWING
        Payment/Credit to Confirming Party.
        It is common practice in the Real Estate Trade wherein a person who has acquired rights in an immovable property transfers/assigns such rights in favour of a Third party for a higher consideration. Such persons normally join the final documents for conveyance either as a confirming party or as a consenting witness. The question which arises for consideration is whether the payments made by the buyer who is ultimate transferee of the immovable property to the confirming party would be subject to TDS under provisions of Section 194 IA of the Income tax Act. A careful reading of the term immovable property is necessary to arrive at a logical conclusion on this matter. The term immovable property has been specifically defined under explanation (b) to Section 194 IA as follows-
        “Immovable property” means any land (other than agricultural land) or any building or part of the building. It is to be noted that the above definition is a restrictive definition very specific with its intent and not an inclusive definition. The above definition is also significantly different from the definition of immovable property under Section 269UA (d) r/w Section 2(47) (v) and (vi) of the Income Tax Act wherein the term immovable property would include rights in or with respect to such immovable property or the definition of “land” for the purpose of Section 35 of the Income Tax Act which under Explanation 2 of the said section includes an interest in land and the definition of “immovable property u/s 3(26) of the General Clauses Act wherein the term “immovable property” has been defined to include land, benefits to arise out of land, and things attached to the earth are permanently fastened to anything attached to the earth .
        Therefore, there would be no requirement of deducting Tax at Source under section 194 IA on payments made by a transferee to an agreement holder, as he is not the transferor of ”immovable property” as defined under section 194 IA.

        Reply
        • October 25, 2013 at 10:51 PM
          Permalink

          Thanks for sharing this.

          Reply
  • October 24, 2013 at 5:55 PM
    Permalink

    How to pay TDS if seller does not wish to disclose the PAN. In that case buyer have to pay 20% of property value. What is the form and procedure to pay TDS?

    Thanks
    Jay

    Reply
    • October 30, 2013 at 9:57 PM
      Permalink

      Hi Jay,

      I tired to get a clarity from the dept based on your query. So far there is no specific process mentioned, but what I understood from the clarification is, buyer needs to have TAN and deposits the said tax amount (i.e. 20%).

      Reply
  • October 27, 2013 at 4:47 PM
    Permalink

    Hi Soubhagya,

    1st of all, thanks for the wonderfully informative article! 🙂

    I have one technical query. I want to pay TDS so I visited the relevant link and was trying to fill form 26QB. When I entered the agreement amount (63 Lacs) and subsequently the TDS amount (63 thousand), I got the message “mismatch in total amount paid/credited entered”. Why am I getting such error? If you wish, I can email you a snapshot of the same.

    Your inputs will be highly appreciated! Thanks a lot!

    Reply
  • October 27, 2013 at 4:52 PM
    Permalink

    hey, got the error solved. Some silly error on my part, please ignore my query. Anyways, thanks for the blog and keep up the good work! 🙂

    Reply
    • October 27, 2013 at 9:48 PM
      Permalink

      Hi Nachiket ,

      I am happy to hear your issue is resolved. Do let me know in case you have any other queries.

      Reply
  • October 29, 2013 at 1:19 PM
    Permalink

    Hi Soubhagya,

    I am buying a flat for 58L for which I have made payments in 4 installments. The first 2 installments are alread ygone where I have not deducted any TDS while remainng two installments (my remaining share and banks’s share) will be paid in 1-weeks time.
    My questions are:
    1) I intend to deduct the full TDS amount in the last installment itself. As per your discussion above, I need to file separate Form 26QB for every installment. So, my questions is in the field “Date fo Tax deducted” which date should I use?

    Reply
  • October 29, 2013 at 1:23 PM
    Permalink

    continuing from above:
    2) For the final installment, the form doesn’t allow me to put a future date for “date of payment”? I will make the final payment on the date of registry itself and I need to give a proof to the bank for that. How to go about it?
    3) If I have paid my first installment on 8-Oct, what is the time within which I have to deposit the TDS with government w.r.t. this installment (is it 7 days from the transaction or 7th of the subseuqnet month)?

    Thanks for your help.

    Reply
    • October 30, 2013 at 11:33 PM
      Permalink

      Hi AA,

      Answers to your queries are;

      1. Date of Tax Deducted can be the date when you are making the payment to the seller.
      2. In this case you may put a current date for tax deducted
      3. You can make it before 7th Nov.

      Reply
  • October 30, 2013 at 3:20 PM
    Permalink

    Thanks a lot for your great work. I am really impressed…
    Like Nachiket, after filling all the information I am getting “Mismatch in total amount paid/Credited entered”. I am not so lucky. I could not find the silly mistake. I am paying installment for the property and out of 7 lakhs installment I paid 6.93 lakhs and rest 7000/ I am trying to pay as Tax. What should I do to overcome the problem?

    With best regards,
    Prabhas

    Reply
    • October 30, 2013 at 10:58 PM
      Permalink

      Hi Prabhas,

      Put Rs. 7Lacs as installment amount not Rs. 6.93Lacs. It will go through.

      Reply
  • November 2, 2013 at 12:42 AM
    Permalink

    Thanks a lot. I could make the payment after putting installment amt 700000 & total payment 700000.
    But I land up in different problem. I made the payment, but before taking the print out of the challan, I got logged out from bank’s website. Now how to get the print out of the challan or what to do next?

    With best regards
    Prabhas

    Reply
    • November 2, 2013 at 9:56 AM
      Permalink

      Ho Prabhas,

      That’s not a big problem at all. You can login to your net banking and download the challan. In case you don’t find the option you can call your bank customer care they will guide you how to get it. Cheers!

      Reply
  • November 4, 2013 at 10:08 PM
    Permalink

    Hi,

    I have account in Standard Chartered bank which is not listed on website for online payment.
    Can I make the payment using my friend’s ICICI bank account?

    Thanks for your help,
    Vinay

    Reply
    • November 4, 2013 at 10:16 PM
      Permalink

      Hi Vinay,

      Yes! you can. But don’t forget to return your friend’s money :-).

      Reply
      • November 5, 2013 at 12:15 AM
        Permalink

        🙂 Thanks a lot for quick reply. You blog and answers were of great help

        Reply
        • November 5, 2013 at 12:17 AM
          Permalink

          Thank you Vinay.!

          Reply
  • November 4, 2013 at 10:09 PM
    Permalink

    Thanks a lot. I could get the print out of the Challan. If I understand the process of getting Form 16, I have to register in Traces’ and get Form 26AS. But it seems the website of ‘Traces’ is not working. What to do now?

    With best regards,
    Prabhas

    Reply
    • November 4, 2013 at 10:14 PM
      Permalink

      Hi Prabhas,

      May be be there is some technical issues with the site. Try after sometime. Normally it takes some days for form 16B to be available.

      Reply
  • November 11, 2013 at 4:54 PM
    Permalink

    Should TDS be deducted on service tax payable also or only on the total cost of property without service tax?

    Reply
    • November 11, 2013 at 8:03 PM
      Permalink

      Hi Arun,

      Yes! Services Tax is also included while calculating TDS of 1% under the said provision.

      Reply
  • November 12, 2013 at 8:25 PM
    Permalink

    Hi Saubhagya,

    Your knowledge on above topic is impressive. I have few question;

    1. While filling the Form 26B, you mentioned TAX Applicable to be 0021( in case of Lotus or Ajnara builder). When i enter the PAN number of the Seller, then it shows Category as ‘COMPANY’. As 0021 is for NON Companies, so is it right to select 0021 , instead of 0020.

    2. I bought flat on 15th Oct worth 5220000, and made payment of 505000, and 10000 respectively on 15th and 23 october. I had not deposited the TDS against those payment, as i was not aware about this that time. Now, i have to make next payment on 15th Nov of Rs. 2050000. This amount include Self Contribution 12,00,000 and Bank Loan 800000.
    How much TDS i have to deduct from this payment. Will it be 1% of 2565000 ( i.e. total amt due till 15th Nov)

    3. Are there any penalty for delayed TDS payment, as i had not deposited TDS for my earlier payments in october.

    4. Flat is in my name and my name wife name. 50:50. So Does she also need to deposit TDS as per her PAN details, or TDS payment with my PAN itself will work.

    Thanks

    Ashish

    Reply
    • November 12, 2013 at 10:02 PM
      Permalink

      Hi Ashish,

      Find the answers in sequence to your queries;

      1. If Deductee (in case of Lotus or Ajnara builder) is company then it will be 0020. I rectified!
      2. Since you have not deducted/paid any taxes so far; do one thing file a single form 26QB for all the payment done so far. Going forward pay taxes and file form 26QB separately.
      3. I have not come across of any penalty that dept is levying, but I suggest do not make any further delay.
      4. It’s better to file separate form 26QB if ownership is joint.

      Reply
      • November 13, 2013 at 1:14 PM
        Permalink

        Hi Saubhagya,

        Thanks for answering. Just confused , so asking again.

        1. 0020 or 0021 selection is based on deductee( i.e. BUYER who is depositing TDS 1% of total payment he is making), or is it based on SELLER ( Seller for whom the TDS has been deducted).

        In my case, as i bought the flat from Builder, and as soon as i enter their PAN details in the form, it shows Category as Company. So does that mean i have to select 0020 ( Income Tax for Companies), and not 0021 ( Income Tax for other than companies)

        3. Form gives error about selecting correct Tax Applicable, if i select 0020 after entering all details.

        4. Whats the correct website for depositing the amount. I am just wondering, if something fake website has not come, as usually people check google directly for selecting site, which may provide result of fake website also.

        Ashish T

        Reply
        • November 13, 2013 at 5:53 PM
          Permalink

          Hi,

          I tried filling and my observation:
          1. An Individual BUYER has to select 0021. If selecting 0020, then it is not allowing to proceed
          2. You had already mentioned the website for fillingit, which i missed. so please ignore last question.
          Ashish

          Reply
          • November 14, 2013 at 9:53 AM
            Permalink

            That’s Great!

  • November 20, 2013 at 8:13 AM
    Permalink

    Hello Soubhagya

    Many thanks for wonderful blog and answering queries.

    I have a situation where, I made installment payment to seller without deducting / filing the TDS on 30/08/2013, now when the second installment is due.

    I was made aware the TDS certificate is required, so I deducted TDS for the payment made on 30/08/2013 as well a separate challan for installment which is due.

    Since I delayed on the TDS payment, am I required to pay Fees and interest ?

    Appreciate you kind response.

    Neon

    Reply
    • November 20, 2013 at 8:44 AM
      Permalink

      Hi Neon,

      I haven’t come across any such cases where penalty/interest have been levied by the dept for late payment. It’s good that you cleared pending dues of TDS payment.

      Reply
      • November 22, 2013 at 9:33 AM
        Permalink

        Thanks for taking time and answering the query.

        Keep up the good work, all the best !!

        Reply
        • November 22, 2013 at 10:12 AM
          Permalink

          Thank you Neon!

          Reply
  • November 27, 2013 at 9:49 AM
    Permalink

    Hi Soubhagya
    Many thanks for excellent blog and answering queries.

    I have purchased a flat from a builder value more than 50 lacks in 2012. The sale agreement states Myself being the primary owner & my wife being jointly co-owner. Uptill now all the installments are being paid by me from my NRE account held only under me i.e it is not a joint account. Future installments will be continued to be paid by meself only.

    Now my question is: Do I need to file TDS only for my PAN no. or should i file TDS for my wife also with 50: 50 ratio.

    Appreciate you kind response.
    Best Regards
    Nagendra

    Reply
    • November 27, 2013 at 11:59 PM
      Permalink

      Hi Nagendra,

      It is advisable to make separate TDS payments if property is being owned jointly. Even you can use your bank account while filing separate form 26QB for TDS payment for your spouse’s portion of payable amount.

      Reply
  • November 29, 2013 at 4:58 PM
    Permalink

    Hi Soubhagya,

    I will really appreciate if you can clarify below doubt that I have.

    I am buying a flat worth Rs. 53,00,000/-. There are 2 buyers (me and my wife) and 2 sellers (seller and his wife). The seller wants me to make all the payment in the name of his wife. However, the slae agreement has the name and PAN of both the seller and his wife.

    In such case, should I be filling “four” 26 QB forms or only “two” as all the payment is being made in the name of only “one” seller.

    Thanks,
    PP.

    Reply
    • December 2, 2013 at 11:12 PM
      Permalink

      Hi PP,

      You just go ahead with filing separate form 26QB for both the sellers. It should be on the basis of their respective ownership proportion.

      Reply
  • December 1, 2013 at 8:19 PM
    Permalink

    Hello Soubhagya,
    We (myself and my wife) ‘Buyers’ are buying a flat from the current owner ‘Seller’ (only one person). We entered into an agreement 25 days back and paid 10% of the token money. Remaining amount shall be paid to the Seller during next week (planned, date not yet decided) at the time of property registration. The remaining amount shall be paid via two Demand Drafts – one from the Bank as Home Loan; and other by me for final outstanding amount. So, overall the complete payment shall be paid in three installments. Now my queries are;

    (a) I am the main applicant for the Home Loan and my wife is the co-applicant. Though the property shall be registered for me and my wife as joint owners, I have made all payments from my account only. Do I need to break the 1% TDS into multiple challans (for me and my wife) or I can pay all TDS using ONLY my PAN?
    (b) As of Monday 02-Dec, it is just 25 days I paid the first installment and I shall be paying remaining amount sometime next week. Can I pay the 1% TDS on complete property value via a single challan and mention the property value in the paid amount field OR do I need to submit three different challans based on three installments? If three challans, what do I need to enter the date for remaining two installments as the date is still not finalised?

    Kindly help me with these queries. Your early response shall be highly appreciated. Thanks for your help.

    Reply
    • December 2, 2013 at 11:22 PM
      Permalink

      Hi RA,

      Find the answers in sequence to your queries.

      1.Even though all the payments are being done through your account, it is advisable file separate form26QB for payment of TDS.

      2. No need to pay TDS for the payments which are not yet been made/finalized.

      Reply
  • December 2, 2013 at 1:52 PM
    Permalink

    Hi Soubhagya
    Many thanks for your excellent blog and your prompt answers.
    I am a NRI living in the Middle East. I purchased a property in India in 2003 paid from NRE funds totally. I would like to sell this property now. Meanwhile I have purchased another property in March 2013. The buying price of the new property is more than the selling price of the old property. My queries are as follows:
    1. Should the buyer withhold TDS as per sec 195?
    2. as per the purchase made already (within before 1 year of sale) I would like to offset the LTCG as per sec 54.
    3. Can I apply for TDS exemption certificate stating the above case ? Please advice process for the same.
    Best Regards,
    Sam

    Reply
  • December 3, 2013 at 6:10 PM
    Permalink

    What i can do if the tds were not able to pay tds within 7 days of generation of 26qb(in case of offline payment mode selected)?

    Reply
    • December 20, 2013 at 8:14 PM
      Permalink

      Oops! Did I miss to reply?

      Hi Nikunj, I have come across few such cases where buyer went ahead and paid the amount of TDS even if little delay has happened. So far dept has not levied any penalty/interest on it (but not sure about future). So do not delay and pay it ASAP.

      Reply
  • December 3, 2013 at 6:55 PM
    Permalink

    Hi,

    I have purchased a flat rs 85 lakhs on my name and on my wife name, from a single seller.
    My share is 70% rest 30 is of my wife. Please suggest what amount i should enter in Amount Paid/Credited & Amount Paid/Credited?

    Reply
    • December 4, 2013 at 4:34 PM
      Permalink

      Hi Madhav,

      You need to enter 70% of Rs. 85Lacs.

      Reply
  • December 12, 2013 at 1:21 PM
    Permalink

    Hi,

    I have read that in case of joint sellers and buyers one form per buyer-seller combination needs to be filled and TDS deducted in that proportion.

    Question is:
    1. If all payments are made by me from my account (not my wife’s) and all payments are made in name of the first owner (nothing to the co-owner), shouldn’t I just fill one 26QB form with my PAN and the primary owner’s PAN?
    2. Would there be problems if done so?

    Reply
    • December 12, 2013 at 3:24 PM
      Permalink

      Hi Harsh,

      While filing form 26QB if you are selecting more than one Transferee/Buyer, then it’s better to file separate 26QB for co-owner as well.

      Reply
  • December 13, 2013 at 10:33 PM
    Permalink

    HI,
    I had sale my property, this was on my name & on my wife name, we were having 50%-50% share, now buyer had deducted the TDS on the same but he had given me only one challan receipt which compromise the whole 1% on my name only. Is that Ok or i have to ask him to provide me 2 challans as we are 2 sellers in that property.

    Reply
    • December 14, 2013 at 9:19 AM
      Permalink

      Hi Mahadev,

      It means TDS has already been deposited, so I suggest you to write a mail to NSDL explaining the situation. Hope they will suggest you better way out.

      Reply
  • December 16, 2013 at 11:20 AM
    Permalink

    Hi, I seem to be in a soup with my TDS for property. I have made two payments given the installment demand letter by the builder. The first time it was all perfect paying and receiving tax challan and Form 16B online. The second time I have made a mistake of clicking on ‘others’ and not ‘income tax’ in the tax payment category. So the amount was deducted and deposited to the government but

    Reply
    • May 7, 2014 at 4:13 PM
      Permalink

      I inquired with NSDL team, TDS-CPC team and also with Income Tax Office at Pune about this. I also followed up with an RTI application to Income Tax Department. Income tax departments forwarded my application from Pune to other Income Tax offices in India and informed me that they are working on this issue. No real progress since last 7 months by any of above departments. The issue is still there. Form 16B and 26AS still says Rs ZERO paid by me as TDS. I am again going to file an application for this. I wonder if I can go in Court about this. Anyone who have successfully solved this matter, please comment and mail me at abhijit_dabhekar@persistent.co.in

      Reply
      • May 11, 2014 at 10:36 AM
        Permalink

        Hi Abhijit,

        Try connecting with your bank. Just recheck if PAN details entered are correct or not. I believe you have already done this. Let me know.

        Reply
  • December 16, 2013 at 11:25 AM
    Permalink

    Hi, I seem to be in a soup with my TDS for property. I have made two payments given the installment demand letter by the builder since the new tax thing became applicable. The first time it was all perfect paying and receiving tax challan and Form 16B online. The second time I have made a mistake of clicking on ‘others’ and not ‘income tax’ in the tax payment category even though I had clicked on TDS on property and other such boxes. So the amount was deducted and deposited to the government but I am not getting proper Form 16B. The amount paid shows as ‘0’ even though it carries the acknowledgement number of payment etc. I have been mailing the TDS customer care for the last 2 months and they never replied. Today I spoke to them and they say they are not aware of the next step and have no clue whatsoever what to do next and I just need to keep waiting (bah.. wow robotic customer care). Any clue what should be my next step? My builder may send a new demand letter in few weeks and I want to sort this before that so that its properly factored into my payments.

    Reply
    • December 16, 2013 at 11:40 AM
      Permalink

      Hi Vivek,

      Sorry to hear such responses (in fact no response) from the dept. Let me also check this with my sources, other buyers and experts. As soon as I get something on this I will surely share with you without any delay.

      Reply
      • January 6, 2014 at 1:26 PM
        Permalink

        Hi,

        Could you manage to get any update on this? TDS paid online but by mistake mentioned ‘others’ instead of income tax and so Form 12B not being generated.

        Reply
  • December 18, 2013 at 11:29 AM
    Permalink

    Hi Soubhagya

    Pls clarify, if 1 % TDS is applicable if BSP of any property is more the 50 Lack or total cost inclusive all (car park, EDC, IDC, service tax etc) is more then 50 lack.

    Regards
    Jay Jain

    Reply
    • December 18, 2013 at 11:41 AM
      Permalink

      Hi Jay,

      Service tax is very well included in total consideration, but rest you have to confirm with the builder’s demand letter/ payment schedule.

      Reply
  • December 18, 2013 at 1:07 PM
    Permalink

    Thanks Soubhagya.

    Why I asked this question is, my flat basic cost is around 42 L and with EDC, IDC, CAR parking it’s reaching 50+.. and demand is coming based on payment plan including EDC, IDC or some demand only BSP…..

    So just want to understand if i have to pay 1% TDS in any of the demand or not.(with ED/IDC demand OR without EDC/IDC demand letter)

    Reply
    • December 18, 2013 at 5:28 PM
      Permalink

      Hi Jay,

      It’s not like that, property consideration crosses Rs. 50Lacs, but you have to deduct 1% only basic cost i.e. of Rs. 42Lacs. This 1% will be on the value of plus Rs. 50Lacs if EDC, IDC, CAR parking are included in it. This means 1% is also deducted on these EDC, IDC, CAR parking cots if they are considered in the calculation of total considered for TDS purpose.

      Reply
  • December 22, 2013 at 12:52 AM
    Permalink

    Hi,
    We are buying a property of value Rs 70,00,000 from a single seller. We would like to put the property in my wife’s and my name. My wife is a housewife. I am paying for the whole property by bank loan.
    a.While filling 26QB, do we have to mention that there are 2 buyers even though my wife is a housewife and a non tax payer.
    b.If “YES”, do we have to fill 2 forms of 26QB.
    c.If “YES”, do we have to divide into two and mention the
    1. Value of the property / 2……. i.e Rs.35 Lakhs each or Rs.70 Lakhs .
    2. Tax amount /2…… i.e Rs 35 Thousand each….for each challan.
    d.If “NO”, is it acceptable to file one form in my name only but show both the names in the sale deed as co-buyers.

    Pls advise by morning as we have to prepare the final sale deed by noon for registration on Monday 23rd Dec.

    Appreciate a quick and accurate reply.

    Thanking you,

    Brgds,

    Varghese.

    Reply
    • December 22, 2013 at 8:09 AM
      Permalink

      Hi Vargese,

      I understand most of the payments are being done buy you, but if you are selecting “Yes” for whether more than one Transferee/Buyer (i.e. two buyer) you should file two separate form 26QB. Of course Value of the property will be Rs. 70 Lacs, but payment of TDS will be calculated 1% on Rs. 35 Lacs in each case. I also suggest you to reconfirm this with NSDL before proceeding.

      Reply
  • December 26, 2013 at 2:53 PM
    Permalink

    Hi Soubhagya,

    I have bought a home jointly with my husband and paid the first installment. While deducting TDS for the first payment, I was not aware that two separate form 26QBs should be filed if there are two buyers. So the first TDS was done only in my PAN number. For the second installment what should I do:

    1. Deduct only under my Husband’s PAN for 2nd installment and 3rd installment onwards deduct equally under both our PANs
    2. Deduct equally under both PANs from 2nd installment onwards

    Thanks,
    Manjula

    Reply
    • December 26, 2013 at 3:09 PM
      Permalink

      Hi Manjula,

      You can go with the 1st option.

      Reply
  • December 28, 2013 at 1:19 PM
    Permalink

    thanks for your advice to each of us

    i am buying a DDA Flat with circle rate of 1.12 cr.There are 2 buyers and 2 sellers.
    Seller is insisting to deposit entire TDS in advance for safe side.Pls advise
    Also how many form 26 qb to be filled
    lastly,form 26 qb is not accepting any future date

    Reply
    • December 28, 2013 at 1:50 PM
      Permalink

      Hi Mohit,

      Paying entire TDS in advance will be risky and not advisable at all.

      Reply
      • December 28, 2013 at 3:17 PM
        Permalink

        Ok ,but please advise any alternative

        is there any form available offline – mean we take a print fill up the form and deposit TDS in cash to bank and then take TDS certificate.

        Reply
        • December 28, 2013 at 3:34 PM
          Permalink

          Hi Mohit,

          You need to file TDS online and I don’t see any alternative to rules.

          Reply
  • January 9, 2014 at 1:37 AM
    Permalink

    Hi Soubhagya , I have bought an under construction property on my wife’s name (1st applicant) and myself (2nd applicant). However all the payments are being made via only one account i.e. mine.

    Case:1

    My wife doesn’t have any income as she is a house wife and therefore does not have a PAN card so how can I submit TDS on her behalf ?
    Can I submit whole TDS amount on my PAN card even though i am second applicant ?

    Case 2:

    My wife has a Pan card however the pan card is before the marriage therefore the surname is different on the PAN card than the one mentioned in Builder Buyer agreement form.
    Can I submit the tds using her old pan card ? If yes will not it make any issue since her name on BBA is different?
    Or can I submit the entire amount on my pan card since I am the one making all instalment payments and that too from one account or through single bank disbursement.

    Appreciate your earliest response on this.

    Thanks!

    Reply
    • January 9, 2014 at 11:31 AM
      Permalink

      Hi Love,

      It’s always advisable to pay TDS proportionately as per ownership pattern. I suggest you have your spouse’s PAN and let her pay TDS for her part. Not sure, if IT department requires any justification later, if you try to avoid TDS payment for your spouse due to no PAN.

      Secondly I don’t think it will matter as of now, as long as PAN belongs to assessee (tax payer). But you should change PAN details asap.

      Reply
  • January 21, 2014 at 3:22 PM
    Permalink

    SIR,
    GIVE INFORMATION THEIR IS NO NEED OF RETURN IN THIS CASE

    Reply
  • January 25, 2014 at 3:39 PM
    Permalink

    Hi. I have bought a house of 60 lacs agreement. We have paid 12 lacs as a part payment and 48 lacs will be loan. Me n my wife’s name is on agreement as a Co buyer.Now how would I pay the tds as we are 2 buyers . Please suggest. Do we need to do it twice for me n for my wife as well. Thank in advance

    Reply
    • January 25, 2014 at 8:47 PM
      Permalink

      Hi Pralhad,

      Since you are joint buyers then it’s better to file TDS separately basis the proportion of ownership. This means twice.

      Reply
  • January 30, 2014 at 2:04 PM
    Permalink

    Hi Soubhagya
    I am facing the problem of Form 16 B showing TDS as Zero because by mistake I punched OTHERS tab instead of INCOME TAX tab.Nobody is able to guide me including TRACES CUSTCARE.They are clueless.Can you enlighten as to way of getting Form 16B rectified.
    Regards

    Reply
    • January 31, 2014 at 10:16 AM
      Permalink

      Dear Kuldeep,

      Do not worry! As IT Dept advises, you need to talk to your bank from where you did the transaction. They should assist you with rectifying the same.

      Reply
  • February 11, 2014 at 10:37 PM
    Permalink

    Hi Soubhagya,

    I am buying a proerty, i have followed your suggested steps, i have have paid the amount through online, and i have received challan report showing all details. Is this sufficient proof for payment and can i perform sale deed based on this report as attachment or do i need other certificate like 16B etc. Please respond its urgent. Thanks in advance

    Reply
    • February 12, 2014 at 11:56 AM
      Permalink

      Hi Sumeet,

      Form 16B is for seller. I think there is no problem going ahead for registration basis challan as a proof of TDS payment.

      Reply
  • February 16, 2014 at 12:34 AM
    Permalink

    Hi,

    Me and my brother have entered into an agreement to sale on Dec 12, 2013 and had paid the vendor some token advance. Now we have fixed our registration date as Feb 24, 2014 where the sale deed would also be entered. In form 26QB, when I key the agreement date as Feb 24, 2014 and the payment to vendor date also as Feb 24, 2014 it doesn’t accept saying the date cannot be future date.
    Now my query is this- Should I wait till Feb 24th morning and make the remittance and then go for registration, since the sub-registrar will not accept to register unless we show the TDS payment challan. Or should I key the date of agreement and date of payment to vendor as Dec 12, 2013 and make the TDS dating the current date.
    Appreciate if you could help me on this.
    Thanks,
    Hitesh

    Reply
    • February 16, 2014 at 8:56 AM
      Permalink

      Hi Hitesh,

      You can enter the booking date instead i.e. your date of agreement.

      Reply
      • February 16, 2014 at 10:42 AM
        Permalink

        Thanks Soubhagya. Appreciate your reply.

        Reply
        • February 17, 2014 at 8:34 AM
          Permalink

          You are most welcome Hitesh!

          Reply
  • February 19, 2014 at 8:50 AM
    Permalink

    Hi Saubhagya,
    Me & my wife are co-owner of a property worth 1.5 cr in Noida however she is a housewife and whole amount is mine. She is not a earning member. percentage of ownership is not mentioned in agreement. Kindly advise if I can submit whole TDS on my name. If I submit half TDS on her name also, she will need to file ITR.

    Also while filling form 26QB online, it is giving me error while submitting “date of payment cannot be empty”. I have already sent a mail to TIN help ID and awaiting reply. Pls advise your comment. Many thanks in advance.

    Reply
    • February 19, 2014 at 10:36 PM
      Permalink

      Hi Ashwani,

      Since your spouse is a co-owner of the property then it will not be good idea to file complete TDS in your name. And there is no harm in filing IT returns. If her income is below taxable limit then the same can be filed with no tax liabilities.

      Yes! date of payment can not be left blank. Let the buyer put a date (not a future date) when he/she makes the payment i.e. net of TDS.

      Reply
  • March 4, 2014 at 11:46 PM
    Permalink

    Me and my wife has booked a under construction flat at Bangalore. Both are the owner (wife i\Ist owner & me 2nd owner), builder agreement both name, joint loan. But my wife do not have any income and she is house wife. The value of property is 51 lakhs and I know we need to deduct Rs 51,000/- as TDS and deposit it with Income tax. We have done loan from LIC housing finance and have paid few installment to builders. While approving loan, LIC HFL has considered my income only. As per rule we need to fill form 26QB for each buyer and seller combination. As my wife do not have any income and I am paying the money to builder and EMI to bank. In such case Can I pay the entire Rs51,000/- as TDS against my PAN with a single Form 26QB? or Divide into Rs 25,500/- each and fill up two form 26QB ? Problem is if there is any TDS deducted by my wife who has no income, then how do she file income tax return at the end of financial year ? If she deduct TDS & do not file tax return, this might create compliance issue. Please advise us how to proceed with TDS on above property.

    Reply
    • March 5, 2014 at 9:25 AM
      Permalink

      Hi Pramod,

      While filing form 26QB it asks “Whether more than one Transferee/Buyer”? Of course you have to select “Yes”, in that case you need to file form 26QB for the 2nd Transferee/Buyer as well. So in your case you need to file TDS basis your respective ownership. Also it doesn’t not breach any compliance if your spouse has “NIL” income and she does not file her IT returns.

      Reply
      • March 5, 2014 at 11:11 PM
        Permalink

        Hi Soubhagya
        I had asked similar question at http://www.caclubindia.com/experts/clarification-on-form-26qb-for-two-buyer-with-one-seller-1465859.asp

        The answer I got is –
        Practically there is no issue even you are deducting TDS under both name as there is no revenue loss to Department and seller can take a credit on basis of valid PAN. But Since you wife has no income, why should you take the trouble to deposit the TDS under both PAN and file separate return. It will increase unnecessary effort. So deposit TDS under your PAN.

        So my question is in Form 26QB, If I select YES for “Whether more than one Transferee/Buyer”, and then pay the entire TDS in my name, will that create any compliance issue ?

        Reply
        • March 6, 2014 at 10:47 AM
          Permalink

          Hi Pramod,

          Visited the link! I saw Experts suggesting “Since your wife has no income, why should take the trouble to deposit TDS under broth PAN & file separate returns?”

          Frankly speaking I consider such as advices are not out of true practice. Thank you.

          Reply
  • March 10, 2014 at 11:18 PM
    Permalink

    Hi Soubhagya
    I divided the amount by 50 % and paid the TDS by filling two Form26QB separately (one for me and one for my wife) with Rs 25500/- for each transaction and paid it using SBI online account.
    Now the problem is how do I register my wife at https://www.tdscpc.gov.in/en/home.html for downloading Form16B. Here it says “Buyer of immovable property can download Form 16B after registering on TRACES as Tax Payer”.
    But while registering as a new user under tax payer category, it asks for option 1 or Option-2. Under option-1, it asks below information.

    TAN of Deductor
    Type of Deduction
    Month-Year
    Month & Year
    TDS / TCS Amount (Rs.) (e.g., 1987.00)

    She is not working and hence no TAN deductor. So She cannot register under option-1

    Under Option-2, it ask below information
    Assessment Year
    Challan Serial Number
    Amount

    Please let me know what value to put under Challan serial No under option. Here in help it shows
    Advance Tax (100)
    Self-Assessment Tax (300)
    Tax on Regular Assessment (400)
    Surtax (102)
    Tax on Distributed Profits (106)
    Tax on Distributed Income (107)

    I am not sure which value will be applicable here for TDS for property

    Reply
    • March 11, 2014 at 9:30 PM
      Permalink

      Hi Pramod,

      You are following an incorrect path. You have to register on TRACES as Taxpayer to generate form 16B.

      Reply
  • March 12, 2014 at 2:41 PM
    Permalink

    Hi Soubhagya
    This is the correct site https://www.tdscpc.gov.in/en/home.html, TRACSES only. But during day time I am not able to access and night time I am able to access this site.
    So In TRACES, please let me know how my wife can register when she do not any deductor.

    Reply
    • March 12, 2014 at 3:15 PM
      Permalink

      Hi Pramod,

      Guess you are not getting what I am saying. Please select “Taxpayer” option (Not Deductor). Then you will not get any such TAN requirement. You and your spouse need to follow this.

      Reply
  • March 19, 2014 at 3:12 PM
    Permalink

    Hi Soubhagya ,

    I am purchasing a Flat from a builder ( Builder share of a Joint development ) in Bangalore.
    My Flat Cost break up is as follows.

    Basic Price ( Area * Sq feet price) = 41 Lakhs
    Car parking = 2 lakhs
    BWSSB + KEB deposits = 2 lakhs
    Amenities ( club + solar+ genset etc ) = 3 lakhs
    Service tax + Vat = 4.5 lakhs

    Is TDS applicable to my purchase ? ( is TDS applicable for Service tax + VAt + amenities + BWSSB+ KEB )? or is it only flat cost + car park cost ? )

    Kindly help in understanding the rule ..

    Reply
    • March 19, 2014 at 7:21 PM
      Permalink

      Hi John,

      You may include Flat Cost & Car Park cost for the same. But check once with the builder, as I see Service Tax & VAT are being considered (I don’t think this should be) while calculating TDS figure. Even in such case total consideration is not crossing Rs. 50Lacs mark. Thus TDS is not applicable here.

      Reply
  • April 7, 2014 at 3:48 PM
    Permalink

    Hi Soubhagya,
    My friend has bought a property for amount exceeding 50 lakhs alongwith two other buyers. But the seller has deducted entire TDS on my freind alone instead of doing it proportionately on all three buyers. How to correct form 26qb and 16b now.. Please guide.

    Reply
    • April 9, 2014 at 7:47 AM
      Permalink

      Hi Sneha,

      In this case you need to talk to your bank from where TDS have been paid. They should help in rectifying the mistake.

      Reply
      • April 16, 2014 at 7:17 PM
        Permalink

        I bought a Floor (under construction) in resale – for sale consideration of 49 lakh excluding IFMS charges and service tax paid by vendor in Feb 2014.

        At that time I paid 48.09 lakh to vendor (including 31,000 for service tax paid by him on payments) & I was supposed to pay 1.69 (including IFMS charges) to builder at the time of possession.

        Now i got letter from builder to pay 1.98 lakh (including IFMS Charges of 46,000 + meter charges of 25,000 + service tax of 4,500).
        My question is although sale consideration was 49 lakh but now total payments will be:
        To vendor – 48.09 lakh
        To Builder – 1.98 lakh
        Total — 50.07 lakh

        Am I suppose to deduct TDS while I make payment to builder which is due in 3-4 days?
        Will builder agrees to this (because for him this deal was at origional price of approx.
        30 lakh to origional allotee)?

        Please advise on urgent basis. Thanks a lot.

        Reply
  • April 16, 2014 at 3:16 PM
    Permalink

    Hi,

    I bought a Floor (under construction) in resale – for sale consideration of 49 lakh excluding IFMS charges and service tax paid by vendor in Feb 2014.

    At that time I paid 48.09 lakh to vendor (including 31,000 for service tax paid by him on payments) & I was supposed to pay 1.69 (including IFMS charges) to builder at the time of possession.

    Now i got letter from builder to pay 1.98 lakh (including IFMS Charges of 46,000 + meter charges of 25,000 + service tax of 4,500).
    My question is although sale consideration was 49 lakh but now total payments will be:
    To vendor – 48.09 lakh
    To Builder – 1.98 lakh
    Total — 50.07 lakh

    Am I suppose to deduct TDS while I make payment to builder which is due in 3-4 days?
    Will builder agrees to this (because for him this deal was at origional price of approx.
    30 lakh to origional allotee)?

    Please advise on urgent basis. Thanks a lot.

    Reply
  • April 16, 2014 at 7:27 PM
    Permalink

    I bought a Floor (under construction) in resale – for sale consideration of 49 lakh excluding IFMS charges and service tax paid by vendor in Feb 2014.

    At that time I paid 48.09 lakh to vendor (including 31,000 for service tax paid by him on payments) & I was supposed to pay 1.69 (including IFMS charges) to builder at the time of possession.

    Now i got letter from builder to pay 1.98 lakh (including IFMS Charges of 46,000 + meter charges of 25,000 + service tax of 4,500).
    My question is although sale consideration was 49 lakh but now total payments will be:
    To vendor – 48.09 lakh
    To Builder – 1.98 lakh
    Total — 50.07 lakh

    Am I suppose to deduct TDS while I make payment to builder which is due in 3-4 days?
    Will builder agrees to this (because for him this deal was at origional price of approx.
    30 lakh to origional allotee)?

    Please advise on urgent basis. Thanks a lot.

    Reply
    • April 16, 2014 at 11:25 PM
      Permalink

      Better deduct TDS

      Reply
      • April 17, 2014 at 2:02 PM
        Permalink

        Thanks Soubhagya,

        In continuation to my previous query—-
        Are IFMS Charges of 46,000 + meter charges of 25,000 + service tax of 4,500 (paid to Builder) + 31,000 of service tax (paid by vendor on his payments) are part of total cost for TDS purposes?

        I have not deducted TDS on payment to Vendors in March—-how I can do now? I am NRI .

        Reply
        • April 17, 2014 at 10:59 PM
          Permalink

          Hi Raju,

          Since the consideration amount is on the edge required minimum consideration value i.e. Rs. 50Lacs to levy TDS, so I suggested “better deduct TDS” . If it is few thousand less than Rs. 50Lacs, there won’t be any problem from your end (even for seller) from IT department.

          If builder doesn’t agree for TDS, then you can go ahead without deducting it as given list of additional expenditures do not include in calculation of total consideration to charge TDS as explained u/s 194IA of the act.

          P.S. You are safe in both ways.. Cheers!

          Reply
          • April 18, 2014 at 3:17 PM
            Permalink

            Thanks Soubhagya,

            I am little confused, on one hand you are advising to deduct TDS on the other hand you are saying that IFMS, METER CHARGES & SERVICE TAX are not include in calculation of total consideration to charge TDS .

            Please advise if these expenses are not included in calculation of total cost for TDS than my sale consideration (which is BSP only + profit margin of vendor) is 49 lakh.

            As I said in my previous comment —-I bought the under construction Floor in resale.
            My sale consideration as per agreement to sale was 49 lakh excluding IFMS charges, meter charges and sales tax.

            I paid 48.09 lakh to vendor & now builder demand for 1.98 lakh. Pl.
            advise —A I am not aware of TDS rules —–Thanks a lot

        • April 17, 2014 at 11:02 PM
          Permalink

          Cont.. to above response

          If you are an NRI buyer and seller is Resident Individual, even then answer remain same as above.

          Reply
  • April 18, 2014 at 6:41 PM
    Permalink

    Hi Raju,

    I have already confirmed you (basis my experience), you can go ahead without deducting TDS as given list of additional expenditures do not include in calculation of total consideration value to charge TDS as explained u/s 194IA of the act.

    My indication towards charging TDS was only because the total consideration is at the edge of Rs. 50Lacs and even if you deduct TDS, nothing will go against you or seller. So now you can freely decide what you want to opt for basis your conveniences.

    Reply
    • April 19, 2014 at 9:17 PM
      Permalink

      Thanks a lot Soubhagya, I checked with my builder —he said I am not supposed to deduct TDC on installment paid to Builder. My builder is Vatika.

      Reply
      • April 20, 2014 at 12:13 AM
        Permalink

        Great to hear! I am happy that your concerns are over.

        Reply
  • April 30, 2014 at 7:51 PM
    Permalink

    Dear soubhagya Ji Namashkar sir I hv purchased a property of 55 lacks at the time of agreement 4/3/14 I hv given 5 lac rs to seller after dat on 25/4/14 I hv given 30 lac now on 30/4/14 I hv paid full 1% tax on whole amount of 55 lac.. Sir now I m goin to get registery on first week of may n give rest of 20 lac to him .. Is thr my problem that I hv given full 1% before registry and also I mention 2015-26 as as dement year pls tell

    Reply
    • April 30, 2014 at 11:35 PM
      Permalink

      Namashkar Jasvinder Ji,

      I would suggest you to file separate TDS of 1% for each payments based on their respective date of payment by selecting payment type as “installment”. As per the provision you need to file 26QB separately if you are not doing any lumpsum payment.

      Reply
  • May 2, 2014 at 12:12 PM
    Permalink

    i have one querry regarding credit of tds on property sell . actually in my case there are one buyer and two seller having no pan no at the time of agreement and they both give power of attorney to one person who have the pan no and buyer has deducted the tds now out ofthe two seller one of get the pan and so they corrected the agreement and mentioned the pan no now my question is at the time of taking credit of tds as per 26as same is showing in the name of the person who have the power of attorney then how the seller would get the credit ?

    Reply
    • May 2, 2014 at 8:24 PM
      Permalink

      Hi Smita,

      As I understand under the provision of section 194IA, TDS has to be deducted based on seller’s PAN (not POA’s PAN). As per your explanation, I believe buyer has deducted TDS, deposited mistakenly basis POA’s PAN and that’s the reason tax credit is showing in POA’s name. You need to talk to the Bank to rectify this mistake. Meanwhile try to get PAN for the buyer who doesn’t have (this is recommended).

      Reply
  • May 7, 2014 at 4:51 PM
    Permalink

    Hi soubhagya,

    I am NRI, I have purchase property in India in resale. My question:
    Are IFMS Charges, meter charges, service tax (paid to Builder), & service tax (paid to vendor regarding reimbursement of service tax paid by him on his payments) part of total consideration for TDS purposes?

    If I do not includes above charges than I am below 50 lakh, please advice.

    Thanks a lot

    Neelu

    Reply
    • May 11, 2014 at 10:42 AM
      Permalink

      Hi Neelu,

      All the charges mentioned above should not be the part of total consideration for TDS purpose.

      Reply
  • May 7, 2014 at 7:18 PM
    Permalink

    Hi Soubhagya,
    I’m selling a property which is jointly owned by my mother and me.
    1) Now can buyer deduct 1% from me alone or he has to deduct 1/2 each from me and my mother?
    2) If buyer deducts 1% from me alone, can I get the exemption while filing my tax returns on full amount or only half amount since the property sold was joint?

    Reply
    • May 11, 2014 at 10:47 AM
      Permalink

      Hi SP,

      Buyer has to deduct TDS from both the owners as per the ratio of respective ownership.

      Reply
  • May 8, 2014 at 3:14 AM
    Permalink

    Hi Soubhagya,

    I have posted my question in the morning, but I can’t sees —therefore I am posting again, if you see twice please excuse me.
    I am NRI, I have purchased a property in resale in India. My Question:
    Are IFMS, METER CHARGES & SERVICE TAX (paid to builder) plus service tax ( paid to vendor regarding reimbursement of service tax paid by him on payments made) included in calculation of total consideration to charge TDS .

    Thanks a lot

    Neelu

    Reply
    • May 11, 2014 at 10:48 AM
      Permalink

      Hi Neelu,

      All the charges mentioned above should not be the part of total consideration for TDS purpose.

      Reply
      • May 13, 2014 at 7:13 PM
        Permalink

        Thanks Soubhagya, even the service tax paid is nit the part of sale consideration for TDS purpose?

        Reply
        • May 13, 2014 at 11:12 PM
          Permalink

          Hi Neelu,

          I don’t see any logic as why ST should be a part of total consideration, but surprise to see many builders giving list of heads to be considered for total consideration for TDS purpose which include ST as well.

          Reply
  • May 15, 2014 at 3:40 PM
    Permalink

    hi, my brother and myself are buying a property from a SINGLE owner and whole price is 70L. but we both are going for two different sale deeds..i.e 40L and 30L each. we are not doing joint registration. Since the seller is same, should we have to pay the TDS?

    Reply
    • May 16, 2014 at 12:25 AM
      Permalink

      Hi Srikanth,

      As per my understanding, TDS becomes seller’s liability if the consideration exceeds Rs. 50Lacs. In your case seller’s property value is Rs. 70Lacs, thus TDS needs to be deducted by both the buyers as per their respective share.

      Reply
  • May 17, 2014 at 9:02 PM
    Permalink

    Hi Soubhagya,

    I’m buying a property for 99 lakhs of which I have already paid 62.5 lakhs in last financial year (20-09-13) & paying the rest amount 36.5 lakhs, in his financial year (may 2014).

    My queries to the above transaction are:-
    1. I haven’t deducted TDS earlier, should I pay them now jointly that is 99000/- in a single challan and mention current financial year 2014-15 or shall I split this into two between financial year?

    2.Continuing the above query, Do I need to pay interest to the TDS not paid earlier?

    Please guide ASAP.

    Thanks,

    Reply
    • May 21, 2014 at 6:47 PM
      Permalink

      Hi Padam,

      Do one thing, pay Rs.99,000 TDS at one go along with the final payment. In case of any requirement of interest comes afterwards then pay basis the same.

      Sorry for delayed response.

      Reply
  • June 3, 2014 at 3:06 AM
    Permalink

    Hi, thanks for the valuable post. I have 2 questions.
    1. So far I have made 2 installments to the builder (On 1st april, 29th april ). And planning to make 3rd installment soon. I will be filing 3 separate 26Qb after 3rd installment. Then what should be the “date of Tax deduction” for the earlier 2 26QB? Should it be the date when cheque paid OR the date when I am filing the 26QB for those installments.
    2. Can the “Date of aggrement/booking” be after the first installment date?

    Thanks.

    Reply
    • June 3, 2014 at 11:22 AM
      Permalink

      Hi Swapnil,

      Answer to your first question is “cheque date” and the second can be “installment date”.

      Reply
  • June 21, 2014 at 11:27 AM
    Permalink

    Dear Soubhagya,
    I payid 1% TDS on property purchase in Aug 2013. The amount is reflecting as advance tax paid agaist my PAN in 26AS. So would like to know how to account this while filing return?
    Regards,

    Deepak

    Reply
    • June 23, 2014 at 6:35 PM
      Permalink

      Hi Deepak,

      It should have been paid under form 26QB for TDS on Sale of Property. You need to talk to your bank to rectify this mistake.

      Reply
  • June 28, 2014 at 12:14 PM
    Permalink

    Hi,

    I booked a flat cost 55 L with co owner with my wife in down payment. I have paid 5.5,4,11,12L in a single month and 20 loan from bank. I did 95% payment to builder in a duration of single month. Basis of above i have following query

    1. Can i pay 1 % tds on whole property price at time of possession which is Dec 2014? How much is late payment in that case?

    2. Can i pay 1 % tds of 95 % payment (52.5L) around 53K before 7 July and submit the form 16b to builder to urjest the TDS amount in final 5% payment?

    3. Since there is 2 buyer me and wife and 1 seller builder, Do i have 2 fill 2 separate 26QB form with 27.5L flat cost amount still all money paid form my account?
    4. Since TDS need to pay in a financial year. Is it not good to pay 1% TDS at final payment at possession time before 31 march if you get the possession before 31 march ?

    Reply
  • June 28, 2014 at 12:16 PM
    Permalink

    Hi,

    I booked a flat cost 55 L with co owner with my wife in down payment. I have paid 5.5,4,11,12L in a single month and 20 loan from bank. I did 95% payment to builder in a duration of single month. Basis of above i have following query

    1. Can i pay 1 % tds on whole property price at time of possession which is Dec 2014? How much is late payment in that case?

    2. Can i pay 1 % tds of 95 % payment (52.5L) around 53K before 7 July and submit the form 16b to builder to urjest the TDS amount in final 5% payment?

    3. Since there is 2 buyer me and wife and 1 seller builder, Do i have 2 fill 2 separate 26QB form with 27.5L flat cost amount still all money paid form my account?
    4. Since TDS need to pay in a financial year. Is it not good to pay 1% TDS at final payment at possession time before 31 march if you get the possession before 31 march ?

    Thanks
    Satya

    Reply
    • June 28, 2014 at 8:48 PM
      Permalink

      Hi Satya,

      Point #1 may not be a good idea, but you can go by Point #2. Response to Point #3 is, you have to file separate 26QB as there are 2 buyers and a seller i.e. fill 2 separate 26QB form with 27.5L each (yes! you are right).

      Clarification to Point #3 is, as same as TDS on your salary. Your employer could also deduct the same at end of each FY, but this is done every month to avoid penalty/interest for late/low payment of TDS.

      Hope I clarified your concerns!

      Reply
  • July 5, 2014 at 4:50 PM
    Permalink

    Hi,
    I am purchasing a flat from joint owners(wife and husband) in which wife’s name appears first on share certificate.
    Sellers are insisting to make the payment and deduct the TDS only on Husbands name which is second in share certificate.
    Kindly advice, whether cheques can be given on single name and TDS also can be deposited on single name?
    Whether there will be any issue with IT?

    Regards,

    Pradip

    Reply
    • July 5, 2014 at 5:34 PM
      Permalink

      Hi Pradip,

      I can’t say whether some issue will arise from IT dept. side or not, but it is not recommended to to go with the proposition what your sellers is insisting at.

      Reply
  • July 16, 2014 at 1:52 AM
    Permalink

    Hi Soubhagya,

    I recently (June 14) booked a ready-possession flat and paid the builder 20% of the agreement cost. I also went ahead & registered an agreement of sale last month itself. I thereafter applied for a home loan with SBI & finally, after a month, they have called me for final documentation & disbursal in the next 2 days.

    Unfortunately, only today I realized that I need to pay 1% TDS on payments. Neither the builder nor the bank has mentioned anything to me so far.

    1) Since, I have already paid 20% of amount WITHOUT deducting TDS, will I have to pay penalty on this?
    2) Do I pay online twice separately..one for the 20% amount & the other 80% disbursement by the bank? Or it would be fine if I pay for the entire amount in one go?
    3) I read somewhere that there has to be a challan for every seller-buyer combination. Now the problem is my agreement of sale has 4 entities (different companies of same builder) & 2 purchasers. However, my agreement clearly mentions that both 20% (already received) & 80% (to be paid) go to ONLY 1 of the 4 entities.

    Does that mean I have to submit Form 26QB a total of 2 times (2 purchaser x 1 seller) or 8 times (2 purchaser x 4 seller)?

    I realize these are length questions with lengthier answers, but your help will be highly appreciated. Thanks in advance!!

    Reply
  • July 17, 2014 at 12:00 AM
    Permalink

    Hi Sonu,

    Any further payment you are going to do, you can adjusted earlier unpaid TDS from there. Of course, you need to file multiple form 26QB if there are payments in installment.

    Reply
  • August 7, 2014 at 2:31 PM
    Permalink

    Hi Soubhagya,
    I recently bought a property worth 80L. There are 2 sellers and 2 buyers. As per earlier comments, you said there shoud be 4 challans. Should i fill 4 challans, each for 20L?
    My with 1st buyer, my with 2nd buyer and similarly for my wife.

    Reply
    • August 7, 2014 at 8:41 PM
      Permalink

      Hi Shubhang,

      Yes! You are right

      Reply
      • August 10, 2014 at 8:26 PM
        Permalink

        Example:
        I purchased a flat worth 80-Lakhs. The TDS on total amount is 80-Thousand. There are 2 buyers and 2 sellers. Thus I will need to fill 4 forms(26QB)
        Till now we paid 30 lakhs to the sellers.

        Question1
        Total Value of Consideration (Property Value)* – Would my Total value always be 80 lakhs in all 4 forms?
        Amount Paid/Credited – Would my amount paid value always be 20 lakhs in all 4 forms?

        Question2
        So should buyer fill 4 forms worth Rs 20 lakhs each?
        Or
        Should buyer fill 4 forms worth Rs 7.5 lakhs each as we paid only 30Lakhs as of now?

        Question3
        If we fill 4 forms, would we get 4 TDS certificate for one property? Is that fine?

        Reply
  • August 18, 2014 at 12:12 PM
    Permalink

    Hi,
    Firstly excellent blog – Very informative and useful.

    Recently my wife and I paid the booking amount for an apartment (who total cost is > 50L). We will be joint owners of the property. My wife paid the booking amount entirely from her bank account.
    a. Should we raise two challans to the seller? Since I did not pay at all, should I really need to raise a TDS challan?
    b. For subsequent installments, we plan to pay in the ratio of 25:75(Wife:Husband). We plan to raise 2 TDS challans in the same proportion. However form 26QB doesn’t capture the percentage share? Where should this be captured?

    Thanks once more for the informative blog and also providing clarity into this

    Reply
    • August 18, 2014 at 5:24 PM
      Permalink

      Hi Ramesh,

      I am not seeing any clear instructions from the dept. whether to deduct the TDS based on the ownership or basis the amount of contribution in similar situations. May be you should go by the ratio of ownership you are going to have and of course two challan for each payments. 26QB will not capture %age of share, so you have to calculate and put it.

      Reply
      • August 18, 2014 at 7:41 PM
        Permalink

        Thanks Soubhagya for your quick response.

        Reply
        • August 18, 2014 at 10:38 PM
          Permalink

          You are most welcome Ramesh!

          Reply
          • August 19, 2014 at 10:25 AM
            Permalink

            Follow up Soubhagya. If ownership is only considered, if Husband hasn’t contributed anything to booking amount, doesn’t raising TDS bring up a transaction in Husband’s 26AS which never happened in first place.
            If (in future), IT tries to track the cheques along with TDS, doesn’t this lead to incorrect data? Thanks once more.

  • September 4, 2014 at 9:00 AM
    Permalink

    Hi Soubhagya, my mother is selling our ancestral property at 78 Lac at the same rate as per circle rate in our area. We are planning to take some amount in cash and and rest amount in cheque. What should be the component of cheque and should it be a lump sum amount or the buyers are insisting on giving smaller cheque amount of 3 – 4 lacs amounting to Rs 55 Lac which we have decided to mention as amount taken for sale. Does the cheque amount matter in transaction for any tax benefit to any party? Kindly reply on urgent basis. Thanks a lot

    Reply
    • September 7, 2014 at 6:18 PM
      Permalink

      Hi Supriya,

      Sorry! I am unable to answer this.

      Reply
  • September 7, 2014 at 2:06 PM
    Permalink

    I PAID ONLINE TDS UNDER FORM 26QB FOR TDS FORM 16B UNDER WRONG PAN I.E IN THE NAME OF MY HUF PAN WHILE PROPERTY IS IN MY INDIVIDUAL NAME[BOTH NAME ARE SIMILAR EXCEPT SUFFIX HUF]
    NOW I WANT TO CHANGE PAN NO.IN 16B OR GET CREDIT OF TAX PAID IN MY HUF A/C AS ADVANCE TAX.
    KINDLY ADVISE

    Reply
    • September 7, 2014 at 5:48 PM
      Permalink

      Hi Mittal,

      You need to visit to the bank (I understand you did online payment) and submit a request letter for necessary amendment in challan. They are supposed to do this.

      Reply
  • September 14, 2014 at 3:42 AM
    Permalink

    I want to know that TDS on Property value 0f 60 lakh is exactly 60000 (1%) of total cost ?
    Or education cess also added in this i.e. total TDS is 61800 (1.03%) of total cost ?

    Reply
    • September 14, 2014 at 9:16 AM
      Permalink

      Hi Saurabh,

      No eduction cess applicable here. You can simply calculate 1% and pay tax.

      Reply
  • September 21, 2014 at 4:37 PM
    Permalink

    Hii sir , I purchased a flat from joint sellers (husband and wife) for 65 lacs. Agreement value of this flat is 60 lacs. i signed the agreement and stamp duty registration for the flat on 2nd september 2014 and also paid by cheque to 2 sellers 5 lac each which got debited on the same day.So in total i have paid 10 lac and the rest 50 lacs will be given by means of loan from bank which will be disbursed before 25 th september 2014 , the loan amount will be first internally transferred and 2 loan accounts of the sellers will be closed and balance will be given in 2 seperate cheques(50:50) for 2 sellers. i havent paid any TDS on that 10 lac paid,now before disbursement of the loan the bank needs a TDS challan of 60 thousand rupees which is 1% of 60 lacs and adviced me to pay the same online on tin-nsdl.com and deducted the same from the total loan amount to be disbursed. 

    Firstly i want to ask u if i can pay the entire TDS amount this week before the bank disburses the loan(according to the banks policy) ??? if yes then i have some queries in filing of the form 26 QB online :

    The last question in
    the property details :

    Payment type : installment or lumpsum?? since i have paid 10 lacs and 50 lacs is still to be paid by the bank.

    in Amount paid / credited section :

    what should I write 10 lacs , 50 lacs or 60 lacs.

    in Tax deposit details section:

    Amount paid credited: ? 10 lac, 50 lac or 60 lac.

    Tds rate= 1%?

    Basic tax= 60000??

    date of payment credit : ???

    is this the day I paid the 2 sellers 5 lac each.or bank disbursement date???

    Date of tax deduction: ???

    In my case , how many challans do i need to fill:
    1 challan of 60 thousand for any one seller or 2 challans for 2 sellers of 30 thousand or
    1 challan of 10 thousand and later 1 challan of 50 thousand for any one seller or
    2 challans of 5 thousand each and later 2 challans of 25 thousand for 2 sellers.
    Awaiting in anticipation for your reply . Thank you.

    Reply
    • September 22, 2014 at 9:07 AM
      Permalink

      Hi Larry,

      This will be good “challans of 5 thousand each and later 2 challans of 25 thousand for 2 sellers”

      Reply
  • October 8, 2014 at 4:58 PM
    Permalink

    Hi Soubhagya, After going through above details i found this site very helpful.
    I have few query :-
    I bought flat last year in 2013 and did not pay TDS till. i am going to pay it now but confused as i have made many payemnt from my account to Builder. I mean for single demand latter i have made three payment along with my loan account.
    Example: I got demand latter of 5 lack in month of oct13 for this i paid 2 lack on 13 oct then 2.5 on 20 then remaining on 25. So do i need to submit three TDS 26QB ?

    Is this possible if i make single payment till today’s payment ? if yes, then which date i need to mentioned ?

    Thanks
    Arvind

    Reply
    • October 9, 2014 at 10:37 AM
      Permalink

      Hi Arvind,

      Though it is not recommended commit such mistakes, so I suggest you to go ahead and make the TDS deposit asap. Since it is already delayed, it may not matter either you file multiple or single. So better submit TDS at once.

      Reply
  • October 14, 2014 at 12:43 PM
    Permalink

    Hi There,

    I have a query and would appreciate if you could help me out.

    I purchased a under construction flat under re-sale and now just received the final demand letter on offer of possession. The flat value is (INR 43,89,000 BSP) or around INR 54,00,000 including everything like IFMS, electricity charges, parking etc.

    While making the final payment do i need to deduct some 1% from the payment and pay this as TDS to Govt or I should not worry and make the full payment and builder will handle the rest at this part.

    Sorry, i’m unaware of all these financial stuff.

    Regards,
    Lalit

    Reply
    • October 15, 2014 at 9:16 PM
      Permalink

      Hi Lalit,

      You should deduct 1% TDS and deposit to the Govt.

      Reply
  • October 18, 2014 at 8:37 PM
    Permalink

    I purchased a new flat worth 1.6 Cr from a builder & paid for that through selling my old flat & taking bank loan.
    the old flat sold for 56 lacs to party A & balance is loan from bank.
    Now i will be paying TDS@1% on 1.6 Cr on my new flat & will give the tax credit certificate to builder. but at the same time, the party A who has purchased flat from me is also paying 1% TDS on 56 lacs. but is not this double TDS, when the entire amount has been given for purchasing a new flat. I had only 1 flat which was sold & took a bigger flat. so is party A reqd to pay 1% TDS. pl. kindly advise

    Reply
    • October 28, 2014 at 8:14 PM
      Permalink

      Hi Abhijit,

      It is nothing to do with you whether you are buying new flat or not. On purchase you have to deduct TDS and on sale TDS will be deducted from the payable amount to you which is exactly as per your case and that is right.

      Reply
  • November 21, 2014 at 8:54 PM
    Permalink

    Property cost 60,00,000 Jointly owned
    Advance Payment 10%

    What will be the amount of TDS can we make 1% of total cost before making full and final payment.

    Reply
    • November 22, 2014 at 1:58 PM
      Permalink

      Hi Neeraj,

      Answer is Yes!

      Reply
  • March 31, 2015 at 1:02 PM
    Permalink

    Hello,
    The query is related to the TDS on purchase of property. I have purchased a property in Aug 2013 from a builder. Whenever builder sent the demand for the installment I did not deduct the tax and I paid the full amount. I had submitted the tax for same amount after wards and then builder credited that amount in my account and in the next demand that got adjusted. Here is the example
    # Demand from Builder – Rs. 500000
    # Amount Paid to the Builder- Rs. 500000
    # Tax submitted to Govt 5000
    # The tax certificate of Rs 5000 given to builder and the next demand came for 500000(actual demand) – 5000(Tax submitted for previous installment credited) = Rs 495000

    I have followed the above process to submit the tax to the government, but I have got a intimation for late filling on the tax and fine on top of it. I have not earned any interest on the TDS, infact I had paid the full amount.
    Can you please suggest what can be done now ?

    Reply
  • March 31, 2015 at 9:59 PM
    Permalink

    Hello ,
    The query is related to the TDS on purchase of property. I have purchased a property in Aug 2013 from a builder. Whenever builder sent the demand for the installment I did not deduct the tax and I paid the full amount. I had submitted the tax for same amount after wards and then builder credited that amount in my account and in the next demand that got adjusted. Here is the example
    # Demand from Builder – Rs. 500000
    # Amount Paid to the Builder- Rs. 500000
    # Tax submitted to Govt 5000
    # The tax certificate of Rs 5000 given to builder and the next demand came for 500000(actual demand) – 5000(Tax submitted for previous installment credited) = Rs 495000

    I have followed the above process to submit the tax to the govt, but I have got a intimation for late filling on the tax and fine on top of it. I have not earned any interest on the TDS, infact I had paid the full amount.
    Can you please suggest what can be done ?

    Thanks,
    Chitresh

    Reply
    • April 4, 2015 at 10:34 PM
      Permalink

      Hi Chitresh,

      There is no other go. You were supposed to deposit tax within seven days from the end of the month in which the tax deduction is made (or amount paid to builder) else it will attract late fee as per section 234E of the IT Act, 1961 read with Rule 31A (4A) of IT rules, 1962, and the same to to be paid by the buyer/transferee/payer (here you are buyer). Better you pay the fee amount under 26QB form (a provision for fee payment is given).

      Reply
      • April 6, 2015 at 4:44 PM
        Permalink

        Hello,
        If the TDS is not deducted by the buyer then what is the penalty in that case ? My case is same where I have not deducted the TDS instead paid the full amount.
        So, what is the penalty for not deducting TDS ?
        Thanks,
        Chitresh

        Reply
        • April 22, 2015 at 10:17 PM
          Permalink

          Hi Chitresh,

          It was your responsibility to deduct & deposit tax. Failure to deduct full or part of tax might bring trouble later. A penalty can be imposed by Joint Commissioner which can be a sum equal to the amount of tax which you failed to deduct or pay.

          Reply
    • June 20, 2015 at 11:46 PM
      Permalink

      Hi Chitresh,

      What Fy did you select while paying TDS. Was it 13-14 or was it the FY in which tax was paid. What is the correct Fy to fill.

      Reply
      • June 21, 2015 at 10:52 AM
        Permalink

        Hi Rajesh,

        The FY the TDS payment should be for the FY in which installment/lump-sum payments are made.

        Reply
  • April 1, 2015 at 3:15 PM
    Permalink

    Hi Soubhagya,

    I have been paying the TDS on each installment regularly, however i recently received a mail from the IT department which said that i had been late by 12 odd days in one of my payments. The penalty is Rs 200 odd per day. They have basically given the calculation for that.

    My question is how do I pay this extra tax they have demanded?
    The regular tds on property i pay after generating a challan from 26qb and then i pay it online through 0021 from my bank account.

    How do i pay this extra amount?

    Please advise.

    Thanks,
    Shivneet

    Reply
    • April 4, 2015 at 10:22 PM
      Permalink

      Hi Shivneet,

      It’s very simple. In form 26QB there is a provision for “Fee” under “Tax Deposit Details” . As per the suggestion, “Value should be entered in ‘Fee’ only when taxpayer is liable to pay Fee amount under section 234E of the Income Tax Act read with Rule 31A(4A) of the Income Tax Rules”. While redirected to Bank, enter the amount under “Fee” and proceed for payment.

      Reply
  • April 19, 2015 at 10:30 PM
    Permalink

    Hi Soubhagya,

    I have got a notice of short deduction, though we have payed entire 1%

    The property is on Joint names. For the total amount payed to the builder, I payed the tax and the second owner of the property also did, in the 26QB form we both mentioned .5% rather than 1%

    As the complete 1% of the amount paid was payed (0.5 by me and 0.5 by co-owner), please help me how this issue of short deduction can be rectified?

    Reply
    • April 22, 2015 at 10:29 PM
      Permalink

      Hi Deepak,

      The possible reasons could be while filing form 26QB you might not have mentioned holder type as joint. The other reason could be Payment/Credit amount was mentioned as full property amount instead 50% of the value. I suggest you to meet your tax officer and explain the issue. If overall 1% TDS on full consideration has been deducted then you don’t have to worry.

      Reply
  • April 21, 2015 at 1:59 PM
    Permalink

    Hi Soubhagya

    Me and my wife are planning to buy a property worth 68 lakhs. The same would be financed by way of a bank loan to the extent of 40 lakhs. The remaining 28 lakhs will be paid only by me without any share from my wife. Further, the bank loan will be paid by me and my wife jointly in the ratio of 50:50. My question is while making the payment of 28 Lakhs, do I need to make a single challan or 2 challan since it is only me who is paying the said 28 lakhs?

    If it is a single challan, how much amount do I mention in the total property cost? (as I understand that since my wife will also be paying the bank loan, TDS in respect of the amount financed by the bank will have to be done by both me and my wife in the ratio of 50:50.) Further, what is the total property cost to be mentioned in 26QB that will be uploaded in my wife’s name as she will be bearing only 20 lakhs out of 68 lakhs?

    Reply
    • April 22, 2015 at 10:37 PM
      Permalink

      Hi Venkatesh,

      Do not get into much complexities. The best way is make 50:50 for the whole amount. While making tax payment cost of the property will be full amount i.e. Rs. 68Lacs but when it is filed by either of the buyer then under Payment/Credit amount put 50% of Rs. 68Lacs followed by 1% of this 50% property cost under Tax Deposit details.

      Reply
  • April 22, 2015 at 12:11 PM
    Permalink

    Soubhagya – I posted a question last week on which I needed an immediate help. I still don’t see it here. Can you please help me?

    Reply
    • April 22, 2015 at 10:30 PM
      Permalink

      Hi Deepak,

      Sorry for late reply! I have just responded to your query. Please check.

      Reply
  • April 26, 2015 at 2:20 PM
    Permalink

    I am buying a property. The seller is a pair (husband+wife). We as buyer are also a pair (husband+wife). My wife is just a home-maker with no income of her own, but she has PAN and we have joint accounts for making payments.
    Query(1): How many TDS challans per transaction in our case? Can our share ratio be 100:0 ?
    Query(2): If I pay the seller from my PNB a/c, can I do TDS from my SBI a/c?
    Query(3): In Form26QB, what is “Total Amount Paid/Credited”? Is it the 99% amount paid to the seller or is it 99%+TDS=100% amount payable on demand?

    Reply
    • April 27, 2015 at 9:07 PM
      Permalink

      Hi Jay,

      Since the property is in joint name, better file 26QB 50:50 and 2 challans each. In the place of “Total Amount Paid/Credit” the amount would be 99%+1% i.e. 100% which is actually 1/4th in each challan, but in total value of the property it should be full value only not 1/4th amount.

      Reply
  • April 28, 2015 at 7:42 PM
    Permalink

    Hi Soubhagya,

    Thanks for the informative post. Couple of questions I have. I purchased an apartment in re-sale and the unit is under construction by builder. So we made an assignment agreement (tripartiate) between Original buyer, Builder and me. Original buyer has cleared off his TDS just before handing over the apartment to me.

    My questions are.

    1. Do I have to only pay TDS for the future instalments to builder. Or I need to also pay TDS for the part already paid to builder by the first buyer(since I have once again paid that amount to Original buyer)

    2. What is the Date of agreement/Booking in 26QB? Is it the original booking date as per original sale and constuction agreement OR the new asignment date builder communicated when they assigned to me (as per new Assignment agreement).

    Thanks,
    Ayan

    Reply
  • May 22, 2015 at 4:54 PM
    Permalink

    Hi Soubhagya,

    Brought property for 70 L by 3 buyers. I gave token money for 4 L. Then transferred 19 L from my account. The other buyer paid 23 L by cheque. The 3rd Buyer has applied for loan where we two are co-applicant.
    The questions are as below:-

    1) Can i pay TDS 1 %(23k) together for the 23 L(19l+4l) I gave or should i create 2 challans for 4L and 19 L respectively. )

    2) The Bank will pay the cheque for 24 L in 2 weeks. So can we pay the TDS 1 % now itself in advance as the registration is already over? or is it necessary that i wait for 2 weeks. If we are paying in advance what should be the date of payment in the 26QB form?

    3) Considering the registration happend on May 18th, by when should the tax be paid?

    Please reply to the questions. Your help is highly appreciated.

    Reply
  • May 22, 2015 at 6:04 PM
    Permalink

    Hi Soubhagya,

    Brought property for 70 L by 3 buyers. I gave token money for 4 L. Then transferred 19 L from my account. The other buyer paid 23 L by cheque. The 3rd Buyer has applied for loan where we two are co-applicant.
    The questions are as below:-

    1) Can i pay TDS 1 %(23k) together for the 23 L(19l+4l) I gave or should i create 2 challans for 4L and 19 L respectively. )

    2) The Bank will pay the cheque for 24 L in 2 weeks. So can we pay the TDS 1 % now itself in advance as the registration is already over? or is it necessary that i wait for 2 weeks. If we are paying in advance what should be the date of payment in the 26QB form?

    3) Considering the registration happend on May 18th, by when should the tax be paid?

    Please reply to the questions. Your help is highly appreciated.

    Reply
  • May 24, 2015 at 1:04 AM
    Permalink

    Dear Soubhagya,

    Brought a flat for 70 L. Registration was on 20th May. 46 L paid to the seller before registration. There are 3 buyers. The 1st 2 buyers paid 23 L each. The 3rd buyer has applied for loan from bank for 24 L. The 1st 2 buyers have deposited 1 % each(23K+23K=46K) and created 2 challans separately.

    1) Now when will 3rd buyer pay TDS. Can it be paid in advance now or should the 3rd buyer wait for the loan disbursement cheque from the bank to deposit the TDS?
    If the TDS can be paid in advance then what will be the installment paid date? When tried to enter June 10th it gave an error saying future date cannot be entered. Please guide.

    Reply
    • June 13, 2015 at 9:00 PM
      Permalink

      Hi Sai,

      While making the TDS payment you have to enter current date of any earlier date, but not any future date. So advance deposit of tax in this case will not be possible. Better on the date of loan disbursement, file 26QB.

      Reply
  • August 29, 2015 at 11:08 PM
    Permalink

    hi soubhagya
    Took me 2 hours to read all historical cases, what a great service and work you are doing for all of us.
    I have 2 query ; I am in final discussion with a NRI couple for purchase of their flat 5 years old.
    First and may be easier query is they want to give GPA to their blood relative and execute the sale without coming to India (busy)
    Second and most important how the TDS will be calculated here. The sale value will be 60L ; now the broker is feigning ignorance telling TDS is applicable for resident Indians at 1% if >50L value but for NRI there is nothing. Please help me as I need to take a call over the weekend on this pls.

    Regards
    Anish

    Reply
    • August 30, 2015 at 1:14 PM
      Permalink

      Hi Anish,

      I am unable give any comment wrt GPA, but towards TDS. Since the seller is an NRI, then you are required to deduct straight 20% on the consideration value as TDS. You need to note, TDS has to be deducted basis your TAN number (Not PAN). Once TDS amount has been paid, you need to file TDS returns after the end of Financial Quarter, but before 15th of the Months under form 27Q.

      In case seller doesn’t wish to get charged for 20% as TDS, then he has to apply for lower/no TDS deduction certificate from the assessing officer where his PAN jurisdiction covers.

      Reply

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