How will transactions of more than one buyer/seller be filed in Form 26QB – TDS on immovable property?

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How will transactions of more than one buyer/seller be filed in Form 26QB – TDS on immovable property?

1)How many Form no: 26 QB should be filled online if Immovable Property is purchased by two buyers from two sellers i.e. one sale deed / agreement is in the name of two buyers from two sellers,

2) Should TDS be paid 25 % wise e.g., if property of Rs 60 lakhs is purchased then should TDS be 25%wise i.e. four Form no 26 QB should be filled & TDS be paid 25%wise?

Ans: Earlier there was confusion on this issue. However, this issue has now been clarified by Income Tax Department. In case of multiple sellers, Form 26QB needs to be filed for each seller separately. Similarly, in case of multiple buyers, each needs to issue Form 26QB separately.

Relevant FAQ on NSDL site is reproduced as under:

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.

 

Replies (1)

I had purchased a under construction property for a sale consideration of Rs. 55,00,000/- from Mr. X and made a payment of Rs. 16 Lacs to him (Rs. 8 lacs which he made to the builder and Rs. 8 lacs for the difference of the prices).

I need to pay 37 lacs to builder as and when the demand is raised. Please suggest that shall I deduct the TDS @ 1% for the payment made to both the party or not.

The original sales consideration with the Builder and the 1st buyer was Rs. 45 Lacs.

Please suggest.

Regards,

Sumit Jhunjhunwala

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