Major Head when individual paying TDS to builder

7775 views 6 replies

EqualTP

2 Points Posted on 29 December 2023

Hi,

I (individual) am purchasing an under-construction property from a builder (corporation). There is a construction linked payment (CLP) schedule. Builder is asking me to deposit TDS based on the CLP. They have sent me all the details and a document with screenshots to show how to ePay TDS

I go to incometax eportal > login > ePay Tax > Form 26QB.
   •   I enter my PAN, all the details in the greyed out boxes are correct. I click Continue.
   •   In next screen, I enter builder's PAN. The category of the PAN (which is a greyed out box) shows "Company". I click continue.
   •   In next screen, the tax applicable (Major head) is showing Corporatoin Tax (0020).

The builder's screenshot shows it needs to be Income Tax Other Than Companies (0021).

I want to understand when an individual pays TDS through Form 26QB to a builder, should the major head be 0020 or 0021? Thank you.

Replies (6)

Quick Summary

Individuals paying TDS to builders through Form 26QB reported confusion over Major Head 0020 vs 0021. The portal often auto-selects 0020 for corporate sellers, though users and TRACES support reported correction-related compatibility issues. Meta Page Title: Major Head 0020 vs 0021 in Form 26QB for Builder TDS Meta Description: Understand the confusion around Major Head 0020 and 0021 while paying TDS through Form 26QB for property purchases from builder

CA Raj Doshi

Practising CA

8954 Points Posted on 02 January 2024

0020 or 0021 is based on PAN ( type of assessee viz individual, huf, company etc )

Whatever is being selected automatically in portal is correct

Rgds
CA. Raj Doshi
R C D & Co.
Chartered Accountants
Kandivali West,Mumbai

subra srinivasan

11 Points Posted on 21 July 2024

When an Indididual deducts TDS on flat purchase from a corporate the E filing website chooses major head 20 ie corporate tax, because the TDS is claimed by the seller who is a corporate. But when I want to make a correction thro TRACES I get a error message that the major head is not compatible with the pan of the Payer whomis an individual. When I contacted Traces they say the major head should be 21. This is a problem faced by many. Pleasev advise

Nitika Agarwal

12 Points Posted on 29 January 2025

Agreed with subra srinivasan. Many folks are facing this issue.

CA Raj Doshi - I see contradicting information on this site itself. Traces helplines says it should be 0021 but while making a New payment the form does not allow to select and always shows 0020 (Corporate). It should be based on Buyer PAN and we are Individual type. Please clarify.