Joint buyers and joint sellers

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This discussion clarifies how to handle Tax Deducted at Source (TDS) when multiple buyers and sellers are involved in a property transaction. The total sale value of the property is considered, but for TDS purposes, it's divided equally among the buyers. Each buyer will file Form 26QB based on their share of the sale value, ensuring accurate reporting in their respective Form 26AS statements and preventing inflated property values for sellers.

brigade ca

brigade ca (Querist)

16 September 2024 so if i have 2 buyers and 2 sellers and property purchased = 70lac

total sale value consideration would be 70lac(irrescpective of joint buyers and joint sellers)

and total stamp duty value and total amount paid/credited = would be 17.5 since 4 forms and lumpsum

dont i have to divide total sale value consideration by 2 ie 35lac for each buyer since each buyer will go for 2 26qb and putting 70 lac will increase the value of property in sellers 26as??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 September 2024 Yes, for each buyer sale value will be 35 lakhs. (for aggregate of sellers)
Yes, for amount credited (Lump sum) for each form would be 17.5 L.

brigade ca

brigade ca (Querist)

16 September 2024 i mean total sales value consideration
for eg a,b are buyers for x,y sellers

so for =a ,total sales value consideration in 26qb would be 35lac each time for x and y when filling form for tds 17500,(17.5 lac) ecch time or i also divide total sales value consideration for each seller

if it is 35lac each time for a: will 26as show: 35lac*2,35lac*2 (for a,b and show total value 1.4cr instead of 70) or will it assume that tds was paid less each time so property value will be a=35lac and b=35lac and total 26as for seller as 70 lac which is correct

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 September 2024 For each buyer value of consideration will be 35 lakhs. Need to file four forms, two by each buyer, while tax liability will be 17.5K per each form.

brigade ca

brigade ca (Querist)

16 September 2024 so this has to done 4 times 2 for A BUYER(x,y) and 2 for B BUYER(x,y) in 26qb finally

1. Total Value of Consideration (Property Value)-35 lac

2. Amount Paid / Credited currently (B) =1750000
3. Total Stamp Duty of Property (C) =1750000

tds will be 1% each time = 17500

Thank you sir

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 September 2024 Correct...
Good luck.

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