TDS : Builder - PAN No change

In my view, this should not be treated as two sellers with 65% and 35% share merely because the builder’s PAN changed after 65% payment.

For TDS purposes, reporting should be based on the actual PAN/entity to whom the payment was made or credited. Payments made before the change should be reported under the old PAN, and payments made after the change should be reported under the new PAN/company, provided the builder has legally communicated/confirmed the change.

The 65:35 ratio should not be shown as seller-wise ownership share unless both entities are actually co-sellers in the agreement or transfer documents. If it is only a change/conversion/restructuring of the builder entity, then obtain written confirmation from the builder, revised demand letter, PAN details, and preferably a declaration/novation or clarification letter, and file TDS accordingly.

Also, ensure that TDS already deposited under the old/new PAN matches the respective payment and credit records, because mismatch may later create difficulty in Form 26AS/AIS or builder reconciliation.

I understand in Form 26QB it should be reported as single seller.

But in Form 141, should I mention new PAN as 100%. ot sure if automated system detects both the PAN no belongs to same entity and group it together. If not, I am worried because their automatic sustem would see TDS paid only on 35% amount. This may cause automatic alert that I paid TDS only on 35% whereas I am claiming full 100% paid to that seller. 

Yes, in agreement or sale deed there would be one seller. But is it important? Let me take another example

Lets say I purchased a resale underconstruction property from MR X. Mr X purchased this from builder at 1 crore + 12% GST = 1.12 crore. Mr X paid 80% (89.6 lakhs = 80 + 12% GST) to the builder and 20%(22.4 lakhs = 20 + 12% GST) is pending at the time of resale

I purchased this property at 1.6 cr. I paid 1.376 cr to Mr X and 22.4 lakhs to builder.

For Agreement:
It will be only one seller i.e builder. Cost would be 1 crore as builder received this amount

For TDS purpose
I will show two sellers
Mr X 1.376
builder : 20 lakhs (Not 22.4 lakhs, Because TDS is not applicable on GST)
My total cost : 1.576 crore

Here I will two sellers even if the agreement has only one seller. Also I show cost as 1.576 cr whereas as per agreement it is 1 crore and actual is 1.6 crore. Please let me know if there is any mistake in my declaration here

The PAN change alone does not establish that there are two sellers. For the April installment, report the seller or sellers legally entitled to that payment under the sale agreement and any valid assignment/novation or other transfer of the builder’s rights. If the original builder company remains the contracting seller and only its PAN changed, treat it as one seller using the PAN applicable to the relevant transaction; do not split the seller share 65%/35% merely because 65% was paid before the change.

• If the contract was transferred to a new company, check the effective date and documents. The 65%/35% split would need to reflect the actual consideration attributable to each seller, not simply the payment percentages.
• Since the February TDS was deposited under the new PAN as a single seller, reconcile the Form 141 details with the challan and the underlying documents. The exact treatment depends on whether this was a PAN correction/change for the same legal entity or a change of seller; the facts provided do not establish which.

This seller-and-PAN reconciliation is an important step in completing the property TDS workflow and keeping the return consistent with the agreement and payment records. Manual compliance work can be difficult to track across installments, while automation reduces repetitive checks and leaves the reporting decisions under your professional judgment. Our platform offers 2,000+ AI agents and 650+ integrations covering only relevant workflows. For a walkthrough tailored to this process, connect with us on WhatsApp at https://wa.me/message/3HVOZ7HIY4ESC1.