194-ia 1% tds

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CA CHETAN GUPTA

426 Points Posted on 01 July 2018

Section 194-IA 1 % TDS on Purchase of Immovable Property worth more than 50 Lakhs & Form 26QB & Form 16B

Mr.X sold property to Mr. A & Mrs. A in Joint Name. Property Value 60 Lakhs

Now 194 IA Applicable or not since there are 2 Buyers and Each will Pay 30 Lakhs.??

If Applicable then How much should Mr. A & Mrs. A Pay individually - viz. 1 % of 60 Lakhs or 1% of 30 Lakhs.

i.e. Both Mr. A & Mrs. A should Pay 60000 each i.e. Total 120000/-

or Both will pay Rs. 30000/- each toal 60000/-

Mr.A can alone Pay the Rs.60000/- to Govt. from his Bank A/c, irrespective of whether he Pays Rs. 60 Lakhs whole from his Own A/c or 30 Lakhs Each.

Now both should File Form 26QB and Form 16 Certificate

Kindly Guide.

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121531 Points Posted on 01 July 2018

" If Applicable then How much should Mr. A & Mrs. A Pay individually - viz. 1 % of 60 Lakhs or 1% of 30 Lakhs."

As per their liability of payment....... which is 30 lakhs each..

i.e. Both will pay Rs. 30000/- each total Rs. 60000/-

"OR Mr. A can alone Pay the Rs.60000/- to Govt. from his Bank A/c, irrespective of whether he Pays Rs. 60 Lakhs whole from his Own A/c or 30 Lakhs Each."

Not advisable, to pay by single 60K challan.......

CA CHETAN GUPTA

426 Points Posted on 01 July 2018

But Sir, The Builder is asking the Purchaser Couple to Pay TDS and Submit Challan, 26QB & Form 16. Now, what to do??

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121531 Points Posted on 02 July 2018

"How will transactions of joint parties (more than one buyer/seller) be filed in Form 26QB?

Online statement cum challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. E.g. in case of one buyer and two sellers, two forms have to be filled in and for two buyers and two seller, four forms have to be filled in for respective property shares "

From: https://www.tin-nsdl.com/faqs/tds-on-sale-of-property/TDS-FAQ.htm

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121531 Points Posted on 02 July 2018

"How will transactions of joint parties (more than one buyer/seller) be filed in Form 26QB?

From: https://www.tin-nsdl.com/faqs/tds-on-sale-of-property/TDS-FAQ.htm l

CA CHETAN GUPTA

426 Points Posted on 03 July 2018

Okay Sir, In my Case 2 buyer 1 seller so 2 forms will be filled. But how much TDS should they pay . . 30000+30000 = 60000/- ?? vide 2 Seperate challans. or any other Advice.

Jeeva Thangavelu

Student CA Final

340 Points Posted on 03 July 2018

Two separate challans is advicable. If the entire payment is made by one buyer say Mr.A alone, then its sufficeint that Mr.A alone pays 60000 in single challan. But in your case both buyers are making payment of 30 lakhs separately. Therefore both have to pay 1% on amount paid by them, that is 30,000 each in separate challans.