Form 26QB Compliance

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Rishi Khetan (Querist)
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20 February 2023 Husband & Wife jointly purchase under-construction property from a very reputed builder. Payment of this property is to be made in 5 instalments over a period of 5 years (20% each year). The purchase entails buyers to deduct 1 % TDS from the sale value and remit to govt. As per IT rules, TDS on the payments have to be remitted by each of the joint buyers in proportion to their ownership share (50% each). The builder got owners to sign in the purchase agreement that he will file the TDS on their behalf, to help them ostensibly, but actually to get his TDS credit on time without fail ! This is a usual practice followed by big time builders. However, builder deducted full TDS from the 1st named buyer only, when 1st instalment was paid, without consulting them (may be for his convenience). Now while 2nd instalment is being made builder has asked owners to deposit TDS since RBI has started delisting banks from NSDL websites. So now while filing form26qb shall they make the TDS payment in name of 2nd owner only or on basis of their ownership. Plz suggest any other possible solution.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 February 2023 Deduct TDS as per share of property, i.e. by both buyers.

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Rishi Khetan

Rishi Khetan (Querist)
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21 February 2023 What about TDS deducted on 1st installment, since tds was deducted and paid by 1st named buyer only. Will 2nd named buyer be treated as "assessee in default" for the purpose of section 201.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 February 2023 As such there will not be any additional TDS liability over the same property/transaction. So, it can be condoned.

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