TDS on Property- 26QB filing Doubt

NO. TDS to be decuted over both, yhough payment can be made to any  one in the direction & consent of the other.

Two sellers, one not wanting payment directly:

• TDS is deducted on each seller's share of consideration (if the total is Rs 50 lakh or more), with separate 26QB for each seller (per buyer). Even if seller A asks you to pay B (or the full amount to B), TDS on A's share must be deducted under A's PAN.

• Each buyer files 26QB for their share of payment to each seller.

TDS should generally be allocated by the sellers’ respective shares in the sale consideration—not simply by who receives the money. If A and B are both owners/vendors, but the sale deed records that A’s consideration is nil and B is entitled to the entire consideration, TDS may be deducted on the amount payable to B, subject to the applicable section 194-IA threshold and conditions. Do not assume A’s TDS is nil merely because the payment is routed to B: the ownership shares and consideration stated in the agreement and sale deed must support that allocation.

For a property transaction subject to section 194-IA, the buyer deducts 1% on the consideration (or stamp-duty value, if higher) when the threshold is met. Ensure the deed clearly records the allocation and payment instructions, and file Form 26QB using the correct seller and buyer details; where there are multiple buyers or sellers, the required buyer-seller combinations may need separate filings.

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