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TDS on property transactions

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Saksham Sachdeva

64 Points Posted on 06 October 2023

Suppose there is a property transaction.

Consideration amount - 50 Lakhs

TDS - 50,000

There are two buyers and one seller. Two form 26QB needs to be filled in that case from both of the buyers end and both the buyers needs to pay 25,000 TDS each.

Then, what will be the consideration price on each form 26QB? Whether it will be 25 Lakhs each or 50 Lakhs will be filled in both of the form?

Replies (7)

Quick Summary

This discussion clarifies how Tax Deducted at Source (TDS) applies to property transactions, particularly when there are multiple buyers. The key takeaway is that Section 194-IA considers the total property value, not individual shares, for TDS applicability. When filling Form 26QB with multiple buyers, the total consideration amount should be declared, with an option to specify each buyer's share percentage or value if they hold equal stakes.

Radhey Shyam Jha

Student

924 Points Posted on 07 October 2023

Dear Saksham,

As per Section 194-IA total value of the property will consider, not the respective share of the buyer and seller.

For E.g Property is purchased by two buyers and the property value is ₹ 80 Lakhs, So the sale consideration respective share of buyer is ₹ 40 Lakhs each (below ₹ 50 Lakhs) but as per rule total value of the property will consider, so Section 194-IA is applicable.

sabyasachi mukherjee

Profession

19978 Points Posted on 07 October 2023

In this case there are some separate issues.

Saksham Sachdeva

64 Points Posted on 08 October 2023

Hi Radhey,
Thank you for the reply. Yes I understand that the Section 194-IA will be applicable in the example described by you. I just want to know that,

As two form 26QB will be filled from respective buyers, then what amount will be filled in the consideration amount field, full in both or half-half in both?

Suresh Kumar

Account

298 Points Posted on 08 October 2023

Full amount Rs. 50 lakhs has to show. There is option i.e. Share in property= 50%

sabyasachi mukherjee

Profession

19978 Points Posted on 09 October 2023

Property transactions on property value of 40 lakhs

BIPINRAJ

ACCOUNTANT

22 Points Posted on 10 October 2023

There is no such percentage option in form 26QB I think. You have to show the respective share value as the total value of consideration. Ie. if the total value of property is 50 Lakh you may show the property value as 25 Lakh each if they hold equal share.