TDS on property - 26QB

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This discussion clarifies Tax Deducted at Source (TDS) requirements for property purchases under section 26QB. The user inquired whether TDS should be calculated on the full property value or only the amount paid, especially when a lump sum payment is made for registration. The advice confirms that TDS can be paid on the full property value, even if only a portion has been paid upfront, and clarifies how the 'paid/credited' amount should be recorded in such scenarios.

Parekh

Parekh (Querist)

15 September 2024 Hi,

I have registered document for residential property and want to pay TDS.
My property value is 70 lac, but I have just paid 5 lac for registration as lumpsum and balance will be paid later.

1. on which amount I have to pay TDS?
2. can I pay on full mount of 70 lac? (if yes , I would like to pay in full)
3. in any case "amount paid/credited to seller" will be 5 lac?

Thank you in advance

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 September 2024 1. Present liability is over Rs, 5 lakhs.
2. Yes.
3. Rs. 5 lakhs in first case. In case of full amount, Rs. 70 lakhs.

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Parekh

Parekh (Querist)

15 September 2024 Sir,
Thank you very much for prompt reply.

Parekh

Parekh (Querist)

15 September 2024 Just to clerify
If I pay on full 70 lac, when I have paid only 5 lac in advance. is it ok.
The amount to entry in "Paid / credited " will be?
5 lac or 70 lac?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 September 2024 1. Yes, it is accepted. (banks do not deduct TDS, so the purchasers deduct TDS before hand).
2. Rs. 70 lakhs as lump sum payment. (To be divided by each purchasers for each sellers)

Message likes : 1 times

Parekh

Parekh (Querist)

15 September 2024 Thank you very much, Sir.

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 September 2024 You are welcome.

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