Alright! Thank you Niyati
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@CA_Niyati_Mistry can you say where to pay the fine or steps or that because the correction request will not go through as you confirmed
Hello @raghav_munna,
You can pay the demand amount on the E-filing portal, under the Quick Links tab, there is one option of E-Pay Tax.
Do we also need to mandatorily furnish the sale agreement to AO for approval? Since, we took a home loan, the agreement copy is with the bank.
Hi @CA_Niyati_Mistry : I have submitted one 26qb form recently for tds but did some mistake in date of deduction. I have submitted correction request and its waiting for AO approval.
Now AO is requesting for some relevant documents to verify.How I can submit these as my AO is in banglore and I am in Delhi. Can I submit these on the same email.Thanks.
Hello @ARUN_KUMAR,
I would recommend you or any relative or friends to visit the AO and submit the documents physically. You can try connecting with the AO who is allotted to you, and request for email communication.
Hope this helps!
Hi,
As per Income Tax Law, in case of sale of property buyer at the time of making the payment of sales consideration to the seller shall deduct TDS @1% and shall remit the same by filing Form-26QB with his/her PAN within 30 days.
Is it possible that the buyer may remit the same TDS using TAN and filing regular Form-26Q instead of Form-26QB.
Please advise.
Thanks
Hi @garg.pulkit131,
In case of the sale of property, the buyer has to mandatorily Form 26QB and make the payment of TDS amount on the e-filing portal.
Hi @Surbhi_Pal ,
As per law one has to file 26QB, however in Form 26Q also an option has been provided to deposit the TDS on sale of property. This is clearly not in line with Income Tax Act,1961.
I bought a property (exceeding 50L) with my spouse as a joint owner(as mentioned in Agreement for Sale/BBA, though no % of share mentioned.) She is a homemaker and may not contribute any amount towards this property purchase.
Question 1: Do we still need to individually deduct and deposit TDS against our pans or can I as a primary applicant deposit the tds @ 1% as and when I make payment(installment) to the builder?
Question 2: Since no % split is mentioned in BBA, is it by default assumed as 50% for each owner(in this case between self & spouse?)
Question 3: While applying for a home loan, given I am the primary earner, can I still apply as an individual since the spouse has no income nor she intends to contribute towards the emi/ installment for home purchase.
Pls advise. thanks
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Hello @Seeker
Please find the answers to the queries as below:
- We recommend to deduct TDS individually and pay to the builder from respective bank account and deposit TDS respectively at 1% of their share.
- Yes, you can mutually decide the co-ownership % and accordingly make the transaction. There is no legal documentation for the same to be done.
- For home loan, it completely depends upon the bank requirements & eligibility for loan. You can connect to bank because the criteria here might differ from bank to bank.
You can refer to the article below for more understanding about TDS on purchase of property:
We do also help with filing of Form 26QB.
Thank you.
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Thank You Akash, much appreciated your prompt response and for the clarity.
Just a follow-up question- What if there is a joint savings bank account (I being the primary holder and spouse being second holder) - Can we pay the installments of (so called our share) from this joint account?
Also what if the sole purpose of adding spouse as the joint holder in BBA is to get a benefit of reduced registration charges at the time of possession?
While you recommend to deduct TDS individually, can’t I as the primary holder be sole tds deductor and making the full payment as and when demanded by builder and still have both of our names in BBA?
I am sorry for this long question, but your expert lens and views would help. Thank you very much!
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Hi @Seeker
For payment purpose, yes you can pay the installments from the joint account.
I would recommend to deduct TDS individually and pay TDS on respective ownership share because this can be a proof for future tax deductions also. Like buying a property have multiple tax benefits like as below:
- Reduced registration charges
- If you take a home loan, both of you can claim 80C deduction of 1.5 lakh and 2 lakh interest each in ITR.
There is no restriction in law being a primary holder to deduct the TDS on entire amount but to keep a clean transaction and books of accounts, we recommend to deduct TDS as per ownership share and pay to the government respectively.
Thank you.
Hi, I had filed correction for 26qb correction without DSC and corrected field date of payment/credit and date of deduction.
With available pictorial guide on internet in last stage I was waiting for pop-up verification through e-verify or e-aadhar but no pop-up appears and it went for pending for pan approval. Seller did it’s part and provided approval and now the status is pending for AO approval and also the AO address details has been provided.
I learnt many comments here that no need to visit AO, Is it so? Will AO give the approval without my visit?
Hey @Kunjan,
There’s no action required from your end. You will have to wait for approval from the AO. It would take approximately around 15-30 days for AO’s approval.
Hope this helps!
Hello @Surbhi_Pal
Firstly really thankful to you for this early guide.
Even I am Consultant but this is the first of kind 26 qb revision I have done and even i queried with my peer members and no one has idea about this. So i reach this site.
Surbhi even I had word now with TDS cpc about what next with this pending AO approval they told me to visit AO office with old 26 QB, correction acknowledgement, buyers pan and third party pan who is visiting.
Surbhi I was about to visit today but thought to first wait for any member reply here. And after your this reply I will wait for this week time and keep check the status of client.
Thank you for prompt guidance.
Hey @Kunjan,
In most cases, the AO approval is done online itself and the status gets updated.
Hence, you can wait for a few days. If the status does not get updated, you can approach the AO offline.
Hi, queries regarding 26QB…
Example:
Property Value paid to Seller (Sale consideration): Rs. 1 Cr (Property registered &
Stamp duty paid on Rs.1Cr)
Payment made in two installments: Rs.2L + Rs.98L
Actual TDS to be paid (26QB): Rs.1L (1% of Rs.1Cr)
Excess TDS paid: Rs.10L instead of Rs.1L
26QB:
a) Sale Consideration Rs 1L
b) TDS reflecting in Seller’s account: Rs.98K instead of Rs.1L
This is probably because at the time of payment of TDS the ‘installment’ (Rs2+Rs98) option was selected instead of ‘lumpsum’ (Rs1L), so it calculated TDS only on the 2nd & final payment of Rs98L, consequently Rs98K (1%) is reflected in Seller’s account
c) In the buyers account Rs 9,02,000/- is showing as partially claimed
Clarifications:
-
Can the assesse pay the shortfall of Rs.2K by filing another 26QB for the same property transaction by using the unutilized amount? If so how?
-
26QB Correction filed on TRACES using DSC does it still goes through AO or processed by TDSCPC directly?
-
After reconciliation/26QB correction by TDSCPC will the partially claimed amount get automatically updated in TRACES without the need for going to the AO?
4)How much time will it take to process the refund of excess amount paid (Rs9L) under 26QB? Does the assessee need to go to AO?
I learnt that one can’t file a 26QB refund claim if Correction request is under process. Likewise one can’t make Correction once the refund claim is initiated.
Please help clarify…
Thank You!
Hello @3066
Firstly, you need to file another 26QB for the short payment of INR 2000. Once your correction request is processed or denied by AO, you can apply for a refund of the excess TDS paid. After submitting the refund request you need to connect with your AO regarding the submission and approval of documents.
Hope this helps!