TDS on sale of property

Hi,

I have a query regarding TDS filing on 26QB.

The property was sold by the legal heirs of the property owner but the full amount was paid to one of the legal heirs (after obtaining NoC from the other one).

a) In this case, do we need to file 26QB two nos (one each for legal heir) as there are more than one seller.

b) also do we need to show the value of consideration equally and deduct taxes of 0.5% against each legal heir eventhough the

full payment is made to only to one seller?

c) Also shall we show date of agreement as sale deed registration date and mode of payment as lumpsum though some amount is paid as advance.

Please clarify.

 

Replies (3)
A. it depends upon the agreement . if there are two names and share of each known you have to pay equally to both and deduct TDS and 26QB from both.

b. You should not pay to one seller but pay to both seller's equally bcoz both will have to show capital gain in ITR

c. Under 194IA TDS is required to be deducted on the date of dvance payment. Rest TDS when agreement made and payment made whichever is earlier.

1. Form 26QB is to be filed by the person who is making the payments (Buyer) within 30 days from the end of the month in which the TDS was deducted. 
2. TDS u/s 194-IA @ 1% of the sale consideration needs to be deducted if the sale consideration exceeds Rs. 50 lakhs. 
3. In your case, even though NOC was obtained for making the payments towards the purchase of immovable property, TDS needs to be remitted to the respective sellers PAN and proportionately file form 26QB under each seller.  
4. Once the property is registered it will be only on two sellers' name hence, TDS needed to be reflected under both seller's name, so it the buyer's responsibility to remit TDS in both the seller's name. 
5. To avoid any mishap in the future, remit the amount to both the sellers separately and remit TDS under both names separately. 
Please correct me if the above solution has an alternative view. 

Hi,

Thanks for the reply.  I agree with your points.

 

regards

uppili

 

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