My two daughters (who are NRIs, both have Indian PAN No.) and myself, an Indian Resident / Retired Senior Citizen (66 years) have bought a Flat worth more than Rs 50 Lakhs. Out of this, One daughter is contributing through Bank Home Loan as main applicant and the balance I from my own long time savings are actually contributing funding of the property purchase. Another daughter, will only be a joint owner and the decision of holding joint ownership in this property is an internal understanding in our family. The cost of the flat will be paid in instalments. Now, to comply with the IT Act requirement of 1% TDS deduction & payment to IT Dept by the Buyer/s on purchase of property, I have remitted / will be remitting the whole of 1% TDS (as per instalments) from my bank account by filling Form 26QB only with my details & PAN number, as there is provision / fields in the Form 26QB only for details of one PAN, though I have factually mentioned "YES" against the field of "One or more than one buyers". I have got Form 16B generated in my name now. I feel in so far as the TDS is paid in full against a particular Property Value Consideration, either by one of the joint buyers on behalf of all or shared in certain percentages by all, within the prescribed time lines, the relevant tax laws stand complied with. I am sure the Government monitors and is concerned with receipt in time of full TDS and from any one or all of the joint buyers (and, of course,not from anyone other than the joint buyers). Coming to filling Form 26QB, I have the doubt is it necessary to fill the Form by or on behalf of each one of the joint buyers. Then the question arises: QUESTION: In a case like mine as narrated above, since I have / I am paying the whole of 1%TDS against the value of the property, will the fields of Tax amount in respect of the other two owners left blank? Or Filling of Form 26QB by the one who remits the whole amount of 1% TDS will comply with the provisions of this TDS on purchase of property? SUGGESTION : Can some relevant Policy Making Authority suggest to the IT Department to design the Form 26QB, more fields drop down for filling details of other joint buyers too, in case the field against "One or More Buyers" is answered "YES". And in case of one single buyer, where the answer is "No", there is no drop down of more fields for other buyers. This may bring in a solution and avoid confusion by presenting details of both the buyers and seller/s once properly filled in once in a single form and also will ensure no typos while filling data again and at the same time the Income Tax Department has details and PAN numbers of all the joint owners. Regards, Narasimhan
Once the Demand Notice to the extent of lesser amount of TDS deducted is paid, will the Taxpayer get another 26AS and 16B. Is it necessary to fill Form 26QB every time the TDS is remitted, in case of payments in instalments in case of purchase of property worth equal to or more than Rs 50 lakhs?
Dear Sir,
Hope you are doing well !!
Ideally,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.
Further,In case the payment is made in instalments, then TDS needs to be deducted at the time of making each payment. This TDS, deducted each time while paying the instalment, is to be deposited with the department by way of return cum challan (Form 26QB) within seven days of the following month of making the payment.
Failing to do so can, apart from the dues and late filing interest, attract a penalty under Section 271H of up to Rs 1 lakh.
Hi,
- You are required to file two Form 26QB and pay the TDS according to the share of each joint owner in the property.
- You are also required to file 26QB at the time of payment of each installment.
- In case of lesser payment, you will be required to pay short amount. No need to file 26QB again for it.
Thanks
You need to file Form 26QB for each buyer separately and since you have mentioned that there are other buyer they might interpret that amount paid by you is your share and accordingly can ask for other people share.
So its always better to file Form 26QB separately by each buyer because in every case the co buyer are not relative so they cant take information in one form as its individual responsibility of each buyer.
One need to pay TDS every time when the payment is made as TDS needs to be deducted at the time of payment or when amount is credited in books whichever is earlier.
Yes every time separate Form 16B will be provided and same will be updated in Form 26AS of seller and he need to show the entire TDS in the year of sale.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello Sir,
1. If a property has more than one buyer and/or seller, you need to fill in separate Form 26QB for each set of buyer and seller. The details of all buyers and sellers, have to be submitted in each Form 26QB.
So,you need to file form 26QB for each buyer .
2. There is no need to file 26QB for lesser amount, you can directly pay the short amount though online.
3. As per Income Tax Act, the transferee has to deduct TDS at the time of payment of sale consideration. Hence, if sale consideration is not paid in lump sum and is paid in installment, TDS is to be deducted at the time of payment of each installment.
Yes, you will get form 16B for each payment and the same will be reflected in form 26AS.
But since this Form 26QB is for one of the joint buyers you need to show only your share and they might interpret it as your share although other people will not have to pay TDS again as one joint owner has paid everything but you will have to take the pain and explain it to the income tax officer.
Please always keep your e mail id available to contact.
When you fill the field of "One or More Buyers" Yes/No as "Yes", there is no further provision within the Form 26QB or and drop box resulting thereafter to asking for details of other joint buyers. 1.Then how to file separate 26QBs when the total 1% amount has already been paid by one buyer? 2. If again separate Form 26QBs have to be filed, what will be filled in the TDS amount paid field? if I write "0" will not be questioned, though the total TDS has been paid?
Suppose value of property is 65 lacs, TDS would be 65k. Two owners having equal share. Consideration borne by each buyer 32.5 lacs, TDS would be 32.5k.
In each form 26QB select the option yes for One or more buyers and fill value of consideration to be 32.5 lacs and TDS 32.5k.
If it is still not clear, please take phone consultation.
It was a mistake to pay the entire amount now you can only get your Form 26QB amend from your AO and ask for extra amount paid by you as your share and file the rest 2 TDS returns properly.
If you need any further assistance you can always call.
Hello,
Firstly, you were required to file Form 26QB for each buyer according to their share in the property.
In case of payment in installments, you were required to deduct TDS from each installment proportionately and file Form 26QB for each installment.
And in case of lesser payment, you can pay the short amount directly without filing Form 26QB.
Since you were required to file three 26QB Forms but you have filed & paid TDS through only your Form 26QB, you are now required to apply for correction in your 26QB and file the same for the other two buyers.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Yes it is must to filed by all the joint holders
Now, you can convince the AO for correction in 26QB.
Hi
The person making the payment will deduct the TDS. If the other co-owner is not making the payment, he will not deduct the TDS.
Ideally, the person not making any payment should not be made co-owner in the property. I don't see any advantage in it. There are other ways to achieve the same objective.
Hi
TDS to be deducted by person who is doing the payment.IF only one buyer is making the whole payment then,only one buyer have to deduct TDS and file 26QB.
Hoe it helps
