Tds on sale of property

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Gaurang (Querist)
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06 June 2016 Hi,
I am about to Buy Residential Flat Jointly with my Relative,Value of Flat is above 50 Lacs from Joint owners.( Husband & Wife) Pl. explain How the TDS is to be deducted,Since there are two Buyers & Two Sellers.Whether the four challans is to be filled up and how the details is to be filled up in challans and amount to be mensioned in challan.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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06 June 2016 Since the value of the property is above Rs. 50 lakh each buyer will have to deduct tds in respect of each seller. For example if there are two buyers A & B and two sellers C & D. then A will deduct tds on the amount payable y him to C & D both. Accordingly 4 challans will have to be filled.

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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06 June 2016 If there are Two buyer and two seller than 2 you can minimise the challan to Two , for Eg. A & B buyer C & D Seller than A can deduct TDS To C & B Can deduct TDS TO D .

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Gaurang

Gaurang (Querist)
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07 June 2016 Mr.Goyal
If first buyer deduct TDS amount from both the sellers( equally) than how 4 challans will have to be filled and from which challan TDS is to be deducted.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 Here’s how TDS works when **two buyers** buy from **two sellers** jointly for a property above ₹50 lakhs:

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### Basic Rule:

* **Each buyer is liable to deduct TDS on the amount paid to each seller separately.**
* So, if 2 buyers (say A & B) buy from 2 sellers (say C & D),

* Buyer A deducts TDS on the amount paid by A to C and to D.
* Buyer B deducts TDS on the amount paid by B to C and to D.
* This leads to **4 TDS challans** — one for each buyer-seller pair.

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### What if Buyer A wants to deduct TDS for both sellers and Buyer B deducts for none?

* Legally, **each buyer is responsible only for TDS on the amount they pay**. So:

* Buyer A can deduct TDS on the amounts payable to both sellers (if Buyer A pays to both).
* Buyer B **cannot avoid deducting TDS** on the amounts Buyer B pays to sellers by asking Buyer A to do so on their behalf.

* If Buyer A deducts TDS on full consideration (both buyers’ share), it may lead to **compliance and credit issues**, since the TDS credit needs to be properly matched to the seller and buyer PANs in Form 26QB.

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### Practical and recommended approach:

| Buyer | Seller | TDS Challan Number | Amount on Challan (TDS base) |
| ----- | ------ | ------------------ | ---------------------------- |
| A | C | 1 | Amount paid by A to C |
| A | D | 2 | Amount paid by A to D |
| B | C | 3 | Amount paid by B to C |
| B | D | 4 | Amount paid by B to D |

* **You must fill 4 separate Form 26QB challans** to reflect the exact amounts paid by each buyer to each seller.

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### Why separate challans?

* Each challan is linked to the **PAN of buyer (deductor)** and **PAN of seller (deductee)**.
* This ensures correct TDS credit to sellers.
* Helps sellers claim credit properly against their tax liability.

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### Summary:

| Scenario | Number of TDS challans required |
| --------------------------------------- | ---------------------------------------------- |
| 2 buyers, 2 sellers, all pay separately | 4 challans (one per buyer-seller pair) |
| Buyers try to consolidate TDS deduction | Not recommended, may cause mismatches & issues |

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If you want, I can help prepare a step-by-step example with amounts and PAN inputs for each challan! Want me to?

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