Tds under section 194ia

Tds under section 194ia

I have purchased a property in which my mother and father are also co-owners. The value of the property is 85 lakhs. I have taken home loan for the same in my name.
In this case, do I only need to file form 26QB and make the TDS payment or I need to file form 26QB separately and make payments separately? There is no such contribution ratio mentioned in the agreeement for each co-owner.

Asked 1 day ago in Income Tax

Dear Querist,

Since the property value is ₹85 lakhs, TDS under Section 194-IA is applicable at 1% on the sale consideration.

As your mother and father are also co-owners, Form 26QB should be filed separately for each buyer’s share. If no share ratio is mentioned in the agreement, the ownership may generally be taken equally among all co-buyers.

The home loan being only in your name does not change the TDS requirement.

For a more detailed review of your case, you may book a phone consultation.

CA Shubham Goyal

Shubham Goyal

CA, Delhi

Available Now

607 Answers

25 Consultations

Talk to Shubham Goyal NOW!

Dear Sir,

Hope you are doing well.

Since the property has multiple co-owners and no ownership ratio is specified in the sale agreement, Form 26QB is required to be filed separately for each buyer–seller combination, and the corresponding TDS must be deposited separately for each form. In the absence of a specified ownership ratio, the consideration is generally apportioned equally among the co-owners for the purpose of TDS compliance. The fact that the home loan has been sanctioned solely in your name does not affect the requirement to file separate Form 26QBs.

Thanks & Regards,

Payal Chhajed

CA, Mumbai

Available Now

5211 Answers

309 Consultations

Talk to Payal Chhajed NOW!

If the entire payment is being made by you, you only need to deduct the TDS. Your parents are not required to do any TDS compliance

Please note that Form 26QB has been replaced by Form 141. You need to file that.

Lakshita Bhandari

CA, Mumbai

5695 Answers

958 Consultations

Talk to Lakshita Bhandari

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!

Ask a CA