TDS related matter - 194 IA

Whether you filed form 26QB for amount paid Rs. 55.20 lakhs? if yes, what was the amount declared in the form?

I always mention the value of the property as 69 lakhs.

In amount credited section, I mentioned 55.2 lakh and then tds automatically calculated @ 1% i.e 55200.

Yes, there was the defect. Now declare final amount as 5 lakhs.

In Form 26QB, always enter the FULL amount of the consideration for that installment as the "Total amount of consideration" - in your case, Rs 5,00,000.

The TDS amount of Rs 55,200 (1% of Rs 55,20,000 paid by the bank) is what you deposit to the government. The net amount you actually pay the builder (Rs 4,44,800) is simply Rs 5 lakh minus the TDS, but Form 26QB records the gross consideration, not the net outflow to the builder.

A few points to be careful about:
- The "Total value of consideration" field in Form 26QB should be the actual sale consideration for the property (Rs 69 lakh total) or the installment amount, depending on which installment this covers.
- TDS at 1% is deducted from each installment and deposited within 30 days of the end of the month in which it is credited or paid.
- If the bank already paid without deducting TDS, you as the buyer are still responsible for depositing it. Keep proof of your separate TDS payment when the builder reconciles their advance tax.

For the full Form 26QB filing process and how to handle TDS when a home loan is involved, Tax Garden's [Form 10A/10AB registration guide](https://taxgarden.in/blog/form-10a-10ab-trust-registration-section-12ab-india) does not directly apply here, but our CA team handles 194-IA compliance regularly. See [ca-services](https://taxgarden.in/ca-services) for help with your Form 26QB filing.