Tds on property purchase mumbai ( joint seller + joint buyer

This query is : Resolved

Chetan (Querist)
Follow

12 December 2016 Dear Expert

we are buying (me and my wife) a property (flat) which is a joint ownership (50% each).

Query

1) TDS 1% of the agreement value should I have to pay equally on the pan cards of the joint owners ?

2) should the joint buyers also have to split the 50% TDS and pay each to the joint owners pan card separately?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

12 December 2016 Yes. Altogether generate 4 (four) form 26QB.

Chetan

Chetan (Querist)
Follow

12 December 2016 Thank you for your reply sir, please correct me if iam wrong

If joint owners (seller) = Party A + Party B

If joint buyer = Party C+ Party D

Then 1% TDS will be paid

25% of 1% TDS by party C to
Party A + 25 % of 1% TDS by part C to Party B

The same will be done by party D

Can you confirm sir please

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

27 July 2025 Yes, you're **almost correct**, and your understanding is **on the right track**. Let’s break it down clearly.

---

## 🏠 Situation:

* **Buyers:** Party C and Party D (joint buyers – e.g., you and your wife)
* **Sellers:** Party A and Party B (joint sellers – joint owners)
* **Property in Mumbai**
* **Purchase value:** More than ₹50 Lakhs (since TDS under Section 194IA applies)

---

## ✅ **Section 194-IA (TDS on Immovable Property):**

* Applicable when **property value > ₹50 lakhs**
* TDS is **1% of the total sale consideration**
* **TDS must be deposited using Form 26QB** (TDS return-cum-challan)

---

## 💡 Clarification:

Even though the total TDS is just **1% of the total sale value**, the law expects a **separate Form 26QB per buyer-seller combination**.

---

## ✅ **In your case (2 buyers × 2 sellers = 4 combinations):**

You will have to:

1. **File 4 separate Form 26QB**, one for **each buyer–seller pair**.
2. Each form will report **¼th of the total TDS** (i.e., 0.25% of total sale value per form).

---

## 📊 Example:

**Assume total agreement value:** ₹1 crore
**TDS (1%):** ₹1 lakh

You split it as:

| Buyer | Seller | TDS Amount | Form |
| ------- | ------- | ---------- | ------------ |
| Party C | Party A | ₹25,000 | Form 26QB #1 |
| Party C | Party B | ₹25,000 | Form 26QB #2 |
| Party D | Party A | ₹25,000 | Form 26QB #3 |
| Party D | Party B | ₹25,000 | Form 26QB #4 |

---

## 📝 Important Notes:

* Each **Form 26QB** must quote **correct PAN of both the buyer and seller involved**.
* After payment, each seller will be able to see **TDS credit in their Form 26AS**, under their PAN.
* Buyers should issue **TDS certificates (Form 16B)** to sellers after payment.

---

## ✅ Summary:

* Yes, you need to file **4 Form 26QB**.
* Each buyer pays **0.25% of sale consideration** to each seller.
* So your statement is **correct**.

Let me know if you want a **step-by-step guide on how to file Form 26QB** or generate **Form 16B** afterward.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now