Saturday, November 23, 2013

How will transactions of more than one buyer/seller be filed in Form 26QB -tds on immovable property?


on Saturday, November 23, 2013

1)how many form no: 26 QB should be filled online if Immovable Property is purchased by two buyers from two sellers i.e.one sale deed / agreement is in the name of two buyers from two sellers,
2) should tds be paid 25 % wise e.g, if property of Rs 60 lakhs is purchased then should TDS be 25%wise ie four form no 26 QB should be filled & tds be paid 25%wise?


Ans:Earlier there was confusion on this issue. However, this issue has now been clarified by Income Tax Department. In case of multiple sellers, Form 26QB needs to be filed for each seller separately. Similarly , in case of multiple buyers, each needs to issue Form 26QB separately.

Relevant FAQ on nsdl site is reproduced as under :

How will transactions of joint parties (more than one buyer/seller) be filed in Form 26QB?

Online statement cum challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. E.g. in case of one buyer and two sellers, two forms have to be filled in and for two buyers and two seller, four forms have to be filled in for respective property shares.

other FAQ on TDS on transfer of Immoveable property 

What is TDS on property?
The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor


Who is responsible to deduct the TDS on sale of Property?
According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.


I am Buyer, do I required to procure TAN to report the TDS on sale of Property?
Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required quote his or her PAN and sellers PAN.

What if I don't have the PAN of the seller is it Mandatory?
PAN of the seller is mandatory. The same may be acquired from the Seller before effecting the transaction.

How can I use this facility to pay TDS on sale of Property?
The Buyer of the property (deductor of tax) has to furnish information regarding the transaction online on the TIN website. After successfully providing details of transaction deductor can:
Either make the payment online (through e-tax payment option) immediately;
Or make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on www.tin-nsdl.com


If I encounter any error on NSDL site while entering the online form details what should I do?
If any problem is encountered at the NSDL website while entering details in the online form then contact the TIN Call Center at 020 - 27218080 or write to us at (Please indicate the subject of the mail as Online Payment of Direct Tax).


What is Form 26QB?
The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB

I have filled Form 26QB and made the payment online, but I forgot to save the Acknowledgment No. generated at TIN website. From where can I get the Acknowledgment No.?

a) Acknowledgment number for the Form 26QB furnished is available in the Form 26AS (Annual Tax Statement) of the Deductor (i.e. Purchaser/ Buyer of property). The same can be viewed from the TRACES website (www.tdscpc.gov.in) or

b)Taxpayer can also click the option ‘View Acknowledgment’ hosted on the TIN website. Taxpayer needs to enter PAN of the Buyer and Seller, Total Payment and Assessment Year (as mentioned at the time of filing the Form 26QB) to retrieve the Acknowledgment Number.

What is Form 16B?

Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account.

From where will I get the Form 16B?

Form 16B will be available for download from the website of Centralized Processing Cell of TDS (CPC-TDS) www.tdscpc.gov.in

I am a buyer, whether I should deduct TDS on Property from the amount exceeding the property value of Rs50 Lakhs or on the whole amount of property sold?

For example, If amount of property sold is 70 Lakhs, would TDS be calculated at 20 Lakhs or on 70 Lakhs?

TDS is to be deducted on the amount paid/credited to the seller. In the above e.g. the deduction will be on total amount i.e. on 70 Lakhs.

Can I make Cash/ Cheque payments for the TDS at Banks?

Buyer may approach any of the authorized Bank Branch to facilitate in making e-payment.

I am a Buyer and I have filled Form 26QB before TDS payment and I have selected the option e-payment at subsequent date then how the payment made thereafter within the permissible period would be matched in the 26QB?

E-payment of taxes at subsequent date will be linked to the FORM 26QB based on Acknowledgement number generated at the time of filing of Form 26QB.

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  1. - If there are two sellers & one buyer, then that buyer has to fill up Form 26QB twice,i.e for each seller of their proportionate receipt..

    - If there are two sellers & two buyers, then that each buyer has to fill up Form 26QB twice,i.e for each seller of their proportionate receipt..That means four form 26QB will be filled up..So, its basically a multiplier effect of filing up of form depending upon no. of buyers & sellers..

    - Also the TDS u/s 194IA is applicable even if the seller is claiming the Capital Gain Exemption on sale of his capital assets..

    - The threshold limit of Rs.50 Lacs is property wise & not person wise..

    Have a nice day..

    Thanks & Regards -
    CA Dinesh Burad
    E-mail : [email protected]

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  2. A PERSON HOLDING GPA IS GOING TO GET PROPERTY REGISTERED IN MY NAME .IN WHOSE NAME SHOULD I ISSUE DRAFT TO ORIGINAL OWNER OR GPA.ALSO I SHOULD DEDUCT TDS IN WHOSE NAME.ORIGINAL OWNER IS AN NRI LIVING IN CANADA.

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