Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

TDS On Purchase of Flat One Buyer Three Sellers

544 views

Save Share

Nilesh Shukla

21 Points Posted on 29 September 2024

Suppose a person has purchased a property of 54L and the sellers are 3 (husband, wife and son) with equal shares (since there's no mention of their individual ratios in the agreement).

As a buyer, I'll have to fill 3 form 26QB for all 3 sellers. Can you pls confirm if the details below are correct for each of the sellers:

Total Value of Consideration (Property Value) * 54,00,000
Amount paid/credited currently (B) * 18,00,000
Total stamp duty value of the property (C) * 18,00,000

And accordingly, I'll pay 18K TDS per head totalling 54K as 1% of the 54L property.

Replies (2)

Quick Summary

When purchasing a property with multiple sellers, TDS (Tax Deducted at Source) needs to be handled for each individual. In this case, with one buyer and three sellers sharing equally in a £54 lakh property, the buyer must file three separate Form 26QBs. TDS is calculated at 1% on each seller's share (£18 lakh), resulting in £18,000 TDS per seller, totalling £54,000. It's crucial to ensure all seller PANs are operative to avoid a higher 20% TDS rate.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 29 September 2024

Yes that is correct..

Aashok Kumar Sharma

Finance/Compliance Consultant

75663 Points Posted on 08 November 2026

One buyer, three sellers: three 26QB forms:
• Property at Rs 54 lakh (above Rs 50 lakh), with three sellers holding equal shares: TDS at 1% under 194-IA on each seller's share (Rs 18 lakh each, so Rs 18,000 each). The Rs 50 lakh threshold is on the total consideration (clarified from 1 October 2024 by the Finance (No. 2) Act 2024; earlier also generally applied to total consideration).
• File three separate Form 26QBs, one per seller, each showing the total consideration (Rs 54 lakh) and that seller's share. Issue Form 16B to each.
• If a seller's PAN is inoperative, TDS at 20% for that seller.