TDS on property transactions

TDS 279 views 7 replies

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)
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.
In this case there are some separate issues.

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?

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

Property transactions on property value of 40 lakhs

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.

Pls chk tds is applicable


CCI Pro

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