Tds on sale of immovable property
This query is : Resolved
13 June 2016
Department levies penalty, interest, fee for late filing or late deduction of tds by buyers and in cases where buyer are not aware of tds on sale of immovable property, they end up paying penalty, interest and fees.
Is there any way where the penalty, interest or fee can be waived off by the department.
Please let me know at the earliest.
Thank you in advance
Is there any way where the penalty, interest or fee can be waived off by the department.
Please let me know at the earliest.
Thank you in advance
13 June 2016
there is not way you have to pay the intt. and penality for delay period.
13 June 2016
Ok. thank you. Can we make tds payment for all the installments at once by mentioning a single date and not with each installment
13 June 2016
its better to make payment for every payment or make combined payment with intt.
13 June 2016
Then in such case it means that penalty cannot be levied if tds is paid with interest in single date
13 June 2016
According to me, even if tds is paid with interest then penalty will be levied by department
13 June 2016
penality not charge on tax, its on the late filing of return 26QB @ 200 per day during the delay period to deposit date.
13 June 2016
Yes. thank you for the help
04 July 2016
If there is joint owner of property, then sales value to be mentioned in 26QB is also to be divided between the owner?
27 July 2025
Great questions on TDS on sale of immovable property — let's clarify everything clearly.
---
### 1️⃣ **Penalty, Interest & Fees for Late TDS Deduction or Late Filing (Form 26QB)**
* **Interest:**
Applicable if TDS is paid late — calculated from the date TDS was deductible till actual date of payment.
* **Penalty:**
Can be levied for *late filing* or *non-filing* of TDS return (Form 26QB).
Penalty under Section 271H can be up to ₹200 per day of delay.
* **Waiver of Penalty/Interest:**
Unfortunately, **there is no guaranteed waiver** of penalty or interest. The Income Tax Department may consider waiver in *genuine* cases on appeal or under *Section 273A* (where penalty is excessive or unjustified), but it's discretionary and rare.
---
### 2️⃣ **Can TDS for all installments be paid at once on a single date?**
* **Legally, TDS is deductible at the time of payment or credit of consideration, whichever is earlier.**
* For multiple installments, TDS must ideally be deducted and deposited for **each installment separately** with the date corresponding to payment/credit.
* **Payment of TDS for all installments together:**
* Possible but **attracts interest on delayed TDS deposit** for earlier installments.
* Also attracts **penalty for late filing** of TDS return(s) for delayed periods.
* So it is better to deposit TDS timely for each installment.
---
### 3️⃣ **If TDS is paid with interest in a single payment, will penalty still be levied?**
* **Interest on late payment reduces penalty liability but does not exempt penalty on late filing.**
* Penalty is primarily on **late filing of Form 26QB** at ₹200 per day.
* So even if you pay TDS with interest, penalty can still be levied for **late filing**.
---
### 4️⃣ **In case of joint ownership of property, how to mention sale value in Form 26QB?**
* **Sale consideration is to be divided among co-owners** as per their ownership shares.
* Each buyer should deduct TDS on their share of the sale consideration paid to each seller.
* Form 26QB should reflect the **actual consideration paid to each co-owner** separately.
---
### Summary Table
| Query | Clarification |
| --------------------------------------- | -------------------------------------------------------- |
| Waiver of penalty/interest | Possible only on discretionary grounds, rare |
| Paying TDS on all installments at once | Allowed but leads to interest and penalty for delay |
| Penalty despite interest payment | Penalty applies on late filing, interest reduces penalty |
| Joint ownership sale value in Form 26QB | Divide sale value as per ownership, report separately |
---
If you want, I can guide you on how to file corrected 26QB forms or draft an appeal for penalty waiver. Would that help?
---
### 1️⃣ **Penalty, Interest & Fees for Late TDS Deduction or Late Filing (Form 26QB)**
* **Interest:**
Applicable if TDS is paid late — calculated from the date TDS was deductible till actual date of payment.
* **Penalty:**
Can be levied for *late filing* or *non-filing* of TDS return (Form 26QB).
Penalty under Section 271H can be up to ₹200 per day of delay.
* **Waiver of Penalty/Interest:**
Unfortunately, **there is no guaranteed waiver** of penalty or interest. The Income Tax Department may consider waiver in *genuine* cases on appeal or under *Section 273A* (where penalty is excessive or unjustified), but it's discretionary and rare.
---
### 2️⃣ **Can TDS for all installments be paid at once on a single date?**
* **Legally, TDS is deductible at the time of payment or credit of consideration, whichever is earlier.**
* For multiple installments, TDS must ideally be deducted and deposited for **each installment separately** with the date corresponding to payment/credit.
* **Payment of TDS for all installments together:**
* Possible but **attracts interest on delayed TDS deposit** for earlier installments.
* Also attracts **penalty for late filing** of TDS return(s) for delayed periods.
* So it is better to deposit TDS timely for each installment.
---
### 3️⃣ **If TDS is paid with interest in a single payment, will penalty still be levied?**
* **Interest on late payment reduces penalty liability but does not exempt penalty on late filing.**
* Penalty is primarily on **late filing of Form 26QB** at ₹200 per day.
* So even if you pay TDS with interest, penalty can still be levied for **late filing**.
---
### 4️⃣ **In case of joint ownership of property, how to mention sale value in Form 26QB?**
* **Sale consideration is to be divided among co-owners** as per their ownership shares.
* Each buyer should deduct TDS on their share of the sale consideration paid to each seller.
* Form 26QB should reflect the **actual consideration paid to each co-owner** separately.
---
### Summary Table
| Query | Clarification |
| --------------------------------------- | -------------------------------------------------------- |
| Waiver of penalty/interest | Possible only on discretionary grounds, rare |
| Paying TDS on all installments at once | Allowed but leads to interest and penalty for delay |
| Penalty despite interest payment | Penalty applies on late filing, interest reduces penalty |
| Joint ownership sale value in Form 26QB | Divide sale value as per ownership, report separately |
---
If you want, I can guide you on how to file corrected 26QB forms or draft an appeal for penalty waiver. Would that help?
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