Query on form 26QB and TDS deduction

1) pan of seller is necessary

2) Address of property  Date of auction

3) TDS 1 % on each installment 

4)  penalty will be auto calculated 

In government auction cases:

• Seller is usually Government / Authority / Bank / Recovery Officer
• They provide only PAN
• Aadhaar is not applicable

So you can proceed with PAN only.

 Deposit:

• TDS = ₹35,000
• Interest (calculate exactly)

In your case:
You did NOT deduct at time of payment.

So interest = 1% per month
From date of payment till date of deduction.

• Late fee auto-calculated in portal
• Faster you pay → less late fee.

File 26QB Immediately

System auto calculates 234E.
No way to waive through portal.

Penalty Avoidance Strategy

Penalty u/s 271H can be avoided if:

1. You pay:
• TDS
• Interest
• Late fee
2. File within 1 year of due date

Then normally no penalty notice.

Future Installments

For remaining ₹45 lakh: Deduct TDS at time of each payment.

TDS on property is calculated on the actual sale consideration paid (not the stamp duty value), and the rate is 1% under Section 194-IA. You deduct and deposit TDS each time you make a payment, not just at the end. If you pay in installments, each installment needs a separate Form 26QB within 30 days from month-end. The limit of Rs. 50 lakh is on the total sale value, so even if you pay less than Rs. 50 lakh in an installment, TDS still applies if the total deal is above that threshold.

Detailed guide: https://taxgarden.in/blog/tds-on-property-purchase-section-194-ia-form-26qb-india