TDS on Property for multiple sellers

TDS 1232 views 2 replies

Nikhil Doshi

Self Employed

23 Points Posted on 27 January 2025

I am looking to buy a property in single name where in there are 3 sellers. Their respective % share in the property is not clearly mentioned in the existing sales deed. One of the seller has mentioned that for all Income Tax purposes he is the 100% owner of the property.

For the purpose of deducting TDS, I am told to deduct the full amount of TDS and report it only for 1 of the seller who claims to be the 100% owner. As a buyer how should I ensure that I am not exposed to a query because of this claim from one of the sellers? Can I report the TDS in favour of 1 of the sellers? What document or proof should I ask from the seller to confirm on his claim of 100% ownership in the property?

Replies (2)

Nabin Agarwal

Income Tax Practitioner at B.Chhawchhari

271 Points Posted on 27 January 2025

You can ask for a delaration from the seller that he is the 100% owner of the property and also take consent i.eNo objectuon for the remaining two sellers also. After that when you filed Form 26QB therein there is option to mentioned that there are more than 1 seller and TDS to depsoisted therein against 1 buyer only as his share is 100%.

Nikhil Doshi

Self Employed

23 Points Posted on 04 February 2025

Thanks a lot Nabin for your response. Appreciate your help.

I understand the need of taking a self declaration from the first seller, after which I will deduct the complete TDS amount in favour of the first seller. But how do I report while filing for TDS.

Scenario once again - Three Sellers, viz A, B & C. Single Buyer X.

Buyer X is making the payment of the full consideration / agreement value in one single lumpsum payment to Seller A as he has declared that he is the 100% owner of the flat and has made all the payments for loan and personal contribution while taking the flat. Based on this declaration Buyer X is making the TDS payment in favour of -

Seller A - 100% of TDS amount. Seller B & C - 0% of TDS amount.

Q1. Do I need to file three 26QB forms (one per seller) or only one 26QB form in favour of seller A is required for TDS payment.

Q2. If three 26QB forms are needed then what should be the Consideration Amount Paid and TDS Amount Paid for Sellers B and C. Income Tax Website does not allow a 0 value to be entered in either of these two columns. In such case I am unable to enter and submit a 26QB for Seller B and C with 0 values.

Any guidance on above issue will of great help. Thank you.