Regarding the Form 26QB filing for 1% TDS deduction

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This discussion clarifies the filing of Form 26QB for 1% TDS on property purchases exceeding 50 lakhs. It explains that separate Form 26QBs are required for payments made in different months, but payments within the same month can be clubbed. The advice also highlights that TDS payment is linked to the actual payment date (cheque issued or loan disbursement), not just the registration date, and Form 26QB must be filed within 30 days of the deduction month.

MAHESH

MAHESH (Querist)

21 February 2023 Hi,

I am purchasing a property above 50 lakhs for which I am required to deduct 1% TDS. One token payment is made in Jan 2023 with next two payments made in Feb 2023 on different dates. Can I file one Form 26 QB for entire amount or Do I need to file total 3 Form 26 QBs one for each payment?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 February 2023 You need to file 3 form 26QB.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 February 2023 For the payments made in the month of February, you can file single form 26QB.

MAHESH

MAHESH (Querist)

22 February 2023 Thank you for clarification. On the similar lines, the second payment of February is through bank loan. So the cheque will be given only on registration day. But the seller and Bank is insisting on paying TDS before only. Can I file TDS before registration by clubbing the both payments of February and payment date as first payment date of February?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 February 2023 No. Unless cheque issued, you cannot consider it as payment. Consider the date of registration as payment date, as the same would be incorporated in agreement as due date for the installment.

MAHESH

MAHESH (Querist)

23 February 2023 Thank you for the response sir. If I consider registration as payment date, Will it allow me to file Form26QB before (lets say today) for that amount.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 February 2023 No. The Due date of filing Form 26QB is within 30 days from the end of month in which the tax deduction is made. Hence, you can file form 26QB before deduction of TDS.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 February 2023 Yes, it will be allowed to be filed on the registration and payment date.

MAHESH

MAHESH (Querist)

24 February 2023 Thank you both for clarifications. I appreciate it.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 February 2023 Most welcome.

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