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Query : 1% tds on property

Prakhar (xyz) (25 Points)

07 September 2013

Hi,

I have few queries regarding filling of form26QAB for 1% TDS deduction on property:

1. What should be the Amount Paid / Credited value i.e it should be inclusive of 1% TDS or without 1% TDS.

Eg: Suppose I have a builder demand of 6 lacs then Amount Paid/credited should be 6 lacs or 6 lacs - 1% TDS.

2. If I am a buyer and individual and seller is a company then in form 26QAB what should I select

(0020)INCOME-TAX ON COMPANIES (CORPORATION TAX) or (0021)INCOME-TAX (OTHER THAN COMPANIES

Please reply.

Regards,

Prakhar

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3 Replies

CA BHUMIT SHAH (Consultant ) (270 Points)
Replied 08 September 2013

1) You have to deduct tax @ 1 % of Rs6,00,000 that is Rs 6,000 & Amt paid/ credited will be Gross Amt that is Rs 6 Lacs.

2)You have to select option 1since the receiver is a Company

1 Like

Prakhar (xyz) (25 Points)
Replied 08 September 2013

Hi Bhumit,

Thanks for your reply, now I am clear about my first query.

But regarding second query i.e whether to select income tax on companies, or income tax other than companies, I have following doubt:

1. Suppose I am an individual filling form 26QAB, and I have selected first option i.e 0020, then when I click Proceed in form 26QAB, it gives message i.e if you are an individual and if you are not a company then select 0021 i.e Income tax (other than companies).

I am confused here, can you please clarify.

Regards,

Prakhar