What is the ''Total Value of Consideration (Property Value)" in Form 26QB in case of 2 buyers with equal share?
Hey @Sanjan_19,
The total value of consideration in Form 26QB is the total value at which the property was sold regardless of number of buyers.
Hi @Sakshi_Jain
Thank you for the response.
I am told by the seller that it got shown as 2x the property value in his PAN because of us mentioning total value in Form 26QB by both buyers.
What could be the reason?
Value of consideration(Property Value) is the full value of property and
Amount Paid/Credited is the value of share of the seller/buyer.
If the amounts were reflected incorrectly, one can correct the Form 26QB using the Traces website.
The process for the same is linked below
Seller is saying that amounts reflected incorrectly because of putting full value of property by each buyer.
@Sanjan_19 So, there are different fields in Form 26QB that need to be filled.
Since there are 2 buyers with equal share in your case, here’s how the form should have been filed.
The “Total Value of Consideration (Property Value)” is the full value of property and not the share of each buyer.
Whereas, we need to enter the buyer’s individual share paid to seller (i.e. 50% of full value in your case) in the field “Total amount paid/credited to Seller”
Most probably, you would have entered the full amount of property purchase in the “Total amount paid/credited to Seller” field as well.
Now, this is what you can do:
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First of all, the buyer needs to correct the Form 26QB by following this process: Refer Step 3 "File Form 26QB – Correction Statement on TRACES in the linked article to understand the correction procedure for Form 26QB.
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In case the buyer has paid excess TDS, they need to apply for a refund. Read more about this here: Refund Request on the Traces
Hi Mam,
I have a similar query on 26 QB-
Me and my wife are planning to purchase a house worth 64 lac ,
my self contribution is 8 lac & my wife’s self contribution is 16 lac .
Rest 40 lac is home loan under my name where my wife is a co-applicant ( Salary not considered for loan)
Can I still file 50-50 share while filling 26QB.
What I understood from your post that irrespective of the number of buyer’s “Total Consideration Value Should be same” & only “total paid amount” & “stamp duty charges” to be proportionally filled.
Pls help
Hey @pabitra_banerjee,
When filing Form 26QB, there’s a field labeled “Total Value of Consideration (Property Value).” This refers to the total property value as mentioned in the sale deed.
Since there are two buyers involved in your case, you’ll need to file two separate 26QB forms. In both forms, the property value field should reflect the entire property value.
The proportionate share, as agreed upon in the sale deed, will need to be entered in the fields for ‘Total Amount Paid/Credited’ and ‘Stamp Duty Value.’
How do I pay the shortfall amount to the developer on purchase of property which is 1%? I have paid a little less than 1% and have to ensure that the amount is exact 1%. I have paid the final demand and the developer informed me that as per his 26AS there is a shortfall of 4000/- . Need to pay this amount. How to go about this?
Hello @SNED
To pay the shortfall amount, you need to file a correction return on TRACES, where you can update the property value and accordingly pay the correct TDS amount.
Hope this helps!
Correction for 26QB is a long process as it will go to the officer. I have a small amount to pay of 4000/-. What is a faster solution as without this payment the developer wont give the possession. Kindly assist .
We have made 1% TDS payments correctly, however in 26QB we mentioned a wrong amount in Total Value of Consideration (Property Value). Because of this Form 16B shows a shortfall amount of Rs. 3000/- odd. The developer is not willing to give possession of the flat and has asked us to pay him the amount to square of his books of accounts saying that 26QB does not match. I don’t see how paying the developer is solving anything. What’s the way forward.
Hello @SNED
The correct way to process this is by filing a correction return. Further, if you make any changes in the total value of consideration, the correction request will go for Seller’s approval, not to AO. So, you can make the changes accordingly.
Can you guide on how to proceed with the correction on TRACES. Appreciate your reply to this matter.
Hi All,
After filing correction for 26 QB for Total Value of consideration(Property Value) and Amount Paid / Credited (Rs.), ITD requested for below.
Please provide these documents for 26QB correction :- Rs.100 indemnity bond(in original), covering letter stating reasons for correction
I am unable to find any right format for the Indemnity bond, the forms I have seen, there is no specific format for it.
Has anyone used it in the past, for the values I have mentioned, please share a format.
Vijay
Hello @vijay_k
While the Income Tax Department (ITD) does not prescribe a specific format for the indemnity bond, you can draft a simple document covering the following key elements:
- Title: Indemnity Bond
- Parties Involved: Clearly mention your name and address as the indemnifier and the ITD as the indemnified party.
- Purpose: State that the bond is being executed for the correction of Form 26QB.
- Indemnity Clause: Include a statement confirming that you agree to indemnify the ITD against any claims arising from this correction.
- Value: Specify the bond amount (Rs. 100).
- Date and Place: Mention the date and location of execution.
- Signature: Ensure that you sign the document.
Here’s a basic template you can use:
Indemnity Bond
I, [Your Name], son/daughter of [Father’s Name], residing at [Your Address], hereby execute this indemnity bond in favor of the Income Tax Department.
This bond is executed for the purpose of correcting Form 26QB concerning the total value of consideration for the property.
I hereby indemnify the Income Tax Department against any claims arising due to this correction.
Executed on this [Date] at [Place].
Signature: ______________________
[Your Name]
You can customize this template by filling in the relevant details based on your specific situation.