Property purchase TDS | Form 26QB

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This discussion clarifies the process of deducting Tax Deducted at Source (TDS) when purchasing property in India. It addresses whether TDS should be calculated on the agreement value or the circle rate, especially when there's a difference. The consensus is that TDS is typically calculated on the agreement value if it's within 10% of the circle rate. The advice also covers the correct way to fill out Form 26QB for each payment made and the specific dates to use for payment and tax deduction.

Rahul

Rahul (Querist)

25 June 2022 Hi,

I have done agreement to sell with the seller for a property in noida (for 58,50,000 rupees) on 24 May, 2022. I paid 10% (58,500) on the same day via cheque. Then I paid another amount of 9% to seller on 18 June,2022. I have applied for home loan and disbursement will take time so we will be doing registry in first week on July. Now my question is:

1. The circle rate of property is 61 lakhs more than the agreement value. So, 1% TDS will be on circle rate or the agreement value?
2. How should I deduct and pay TDS in my case?
3. Do I need to fill 3 26QB form (2 for previous payment and one that will be done a day before registry)?
4. What should I fill in form 26QB for fields for each of the 3 forms: "Date of Payment/Credit", "Date of Tax Deduction" and "AMOUNT PAID/CREDITED "?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

25 June 2022 1 TDS applicable on circle rate.
2 Deduct 1% on the date of each payment and pay TDS through 26qb.
3 Yes 3 26qb required.
4 Fill the actual date of payment. Fill the same date for tax deduction.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

08 July 2022 I would differ on the TDS deduction valuation. As it is within 10% difference, the TDS should be deducted over 58.50L, i.e. sale deed value.

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