TDS on advance amount paid to builder

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This discussion clarifies the requirement to pay TDS on advance amounts given to a builder before a sale agreement is finalised, especially for properties exceeding 50 lakhs. It also addresses how to handle Form 26QB for joint buyers, confirming that the total property value should be divided equally between them. Lastly, it touches upon the builder's suggestion to backdate TDS payments for past instalments, noting that while technically possible, it might raise issues during scrutiny.

Deepa V

Deepa V (Querist)

20 April 2025 Should I pay TDS on advance amount paid to builder before executing sale agreement on property purchase? The total value of the property is more than 50 lakhs. Also in the case of joint buyers and one seller if the total property value is 60 lac what is the total value of consideration to be entered in form 26qb for each of the buyer. Is it 60 lac in both form 26qb or 30 lac in each form.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

20 April 2025 1. Yes,
2. Rs. 30 lakhs for each purchaser.

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Deepa V

Deepa V (Querist)

22 April 2025 Thank you for your reply. The builder is saying that TDS for past instalments can be paid with current date as the deduction date.Is that correct.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 April 2025 Technically it is possible, but in case of scrutiny it may not be allowed.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 September 2025 Good luck.....

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