Form26QB in case of death of joint owner (seller)

TDS 41 views 2 replies

anuj suryan

Banking

26 Points Joined January 2009

Stamp Duty value of Property: Rs. 86 Lacs. Joint Sellers (Husband&Wife) and Joint Buyers(Husband&Wife). Buyers paid Rs. 20.25 Lacs to the sellers upto 9^th November 2024. Deducted TDS on full property consideration value 86 lacs and deposited the TDS on 09.11.2024 and filed form 26QB on 09.11.2024 (4 TDS challans of Rs. 21,500 each filled for per seller-buyer pair). Rest of the payment will be done through bank loan. Unfortunately, one of the joint sellers has passed away on November 18, 2024. Now the further procedure of selling the property will be carried out by the co-owner/seller of the property. This deal is delayed now due to requirement of court's permission to sell (seller has a minor son). The registration could not happen in FY 2024-25, it will now be done in FY 2025-26. In this case, what shall be done from the point of view of TDS that is already paid?

Can we use the same form 26QB for registering the property. Or do we need th change the financial year?
Do we need to change the PAN of the deceased seller (Husband) and replace it with the surviving seller (wife)?
Anything else to be done?

Please suggest.

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8991 Points Joined December 2011

Since the TDS was paid in FY 2024-25 for a transaction that was supposed to be completed then but is now happening in FY 2025-26 due to delays (court permission for seller with a monor son), you can use the TDS already paid. You don't need to change the financial year for the TDS.

Since one of the joint sellers (husband) has passed away and the surviving seller(wife) is carrying out the transaction, you might need to update or reflect the change in ownership status. However, for TDS purposes on the sale of property, the PAN of the surviving seller (wife) would be relevant for further proceedings. You don't necessarily need to "change" the deceased seller's PAN but ensure the surviving seller's details are used for the transaction moving forward.

Ensure the court permission for sale is properly documented.

Reflect the change in seller status (due to the dealth of one jont seller) in relevant documents for property registration.

anuj suryan

Banking

26 Points Joined January 2009

Thanks for the response. By saying change in the PAN, I meant to file a TRACES PAN correction in the Form 26QB of the deceased and replace the PAN with the surviving seller.