TDS 26QB Property Purchase- Paid in Lumpsum for 2 installments in different months

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Senthil Kumaresan

21 Points Posted on 11 December 2024

We 2 buyers brought 80 Lakhs property. Buyer 1 paid 10 Lakhs on 7 March 2024 and 39, Lakhs 10 Thousand on 9th May 2024. Buyer 2 paid 30 Lakhs on 9th May 2024.

Buyer 1 paid 50000 challan as TDS for contribution of 49 Laksh 10 thousand

Buyer 2 paid 30000 challan as TDS for contribution of 30 Lakhs

When submitting the 2 challans for both buyers, we mistakenly mentioned Total property value as 80 Lakhs instead of mentioning 50 lakhs for Buyer 1 and 30 Lakhs for buyer 2.So we got a demand for 30000 for buyer 1 and 50000 for Buyer 2.

We then applied for 26QB correction for both challans.
The Buyer 2 26QB correction was processed without issues.
The Buyer 1 26QB correction was rejected stating the tds for 10 lakhs should be paid separately as it was actually given to the buyer on 9 March 2024.

How should Buyer1 go about filing the 26 QB correction so he gets demand for late fee/interest for the 10000 TDS he needs to pay by 7 Mar 2024.

Replies (7)

Quick Summary

This discussion addresses a common error when filing Form 26QB for property purchases. A buyer mistakenly reported the total property value incorrectly across two installments paid in different months, leading to a tax demand. While one buyer's correction was processed, the other's was rejected due to a separate payment date for a portion of the TDS. The thread outlines the steps to rectify this, including paying the delayed TDS, filing a new Form 26QB for the missed installment, and applying for correction of the demand with the Assessing Officer, potentially involving late fees or interest.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 11 December 2024

Correcting TDS .

Step 1: Pay TDS for ₹10 Lakhs Buyer 1 needs to pay TDS for ₹10 lakhs, which was paid on March 7, 2024: -

_TDS rate_: 1% of ₹10 lakhs = ₹10,000 - _Payment due date_: March 7, 2024 m

Step 2: File Form 26QB for ₹10 Lakhs Buyer 1 needs to file a new Form 26QB for the ₹10 lakhs payment: - _Challan details_: Provide the correct challan details, including the payment date and amount. - _Property details_: Mention the correct property details, including the value of ₹50 lakhs for Buyer 1.

Step 3: Apply for Correction of Demand After filing the new Form 26QB, Buyer 1 can apply for correction of demand: - _Submit a letter_: Submit a letter to the Assessing Officer (AO) explaining the mistake and requesting correction of demand. - _Attach supporting documents_: Attach supporting documents, including the corrected Form 26QB and proof .

Step 4: Pay Late Fee/Interest Buyer 1 may need to pay late fee/interest on the delayed payment of TDS: - _Calculate late fee/interest_: Calculate the late fee/interest payable on the delayed payment of TDS. - _Pay late fee/interest_: Pay the late fee/interest online or through a challan.