Dear @Surbhi_Pal
I have purchased a property which is under construction…Buyer has sent a notice to deposit TDS (form 16B)…Can you help me to understand that is buyer liable to pay and deposit the tax…If yes, then shall the TDS amount be adjusted against the loan amount?
Hey @Ginni,
Yes, the buyer is liable to deduct TDS at 1% if the property value exceeds ₹50L. The same needs to be deposited by filing form 26QB on the income tax portal.
Thanks for your reply.
Is that means like I as a buyer need to deposit tds amount? Can I get a benefit for the same…
Q.2 in case deposit of tax amount…do I need to adjust the amount from the amount to be paid to vendor…like I have taken a home loan so how I can get this adjustment
Hello @Ginni
Yes, TDS deducted has to be reduced from the total amount payable to seller. The seller can file his ITR and claim the refund of the excess tax paid on sell of property.
Being a buyer, you need to deduct TDS at 1% of the purchase amount and pay the balance amount to the seller. 1% can be adjusted against the loan amount or from the total amount to be paid to the seller.
Hope, this helps.
I received an email from the Tax Deducted at Source (TDS) department stating that the Regular Statement for Acknowledgement Number AKXXXXXX has been processed with defaults under section 200A. The total TDS amount was 76,000/-, which was split equally between my wife and me. However, upon downloading the attached PDF, it shows that my Net Payable amount is 38,380, including a short deduction of 38,000 and an interest on short deduction of 380. I have already paid the 38,000 from my account. Additionally, when I tried to download the Justification Report from the website, it indicates that the latest statement filed for the specified search criteria is not processed
Thanks Akash for your reply.
Please also suggest If in case buyer doesn’t deposit the tax amount…Seller /Property Builder (M3M) will deposit?
Hi Ginni,
It is the buyer’s responsibility to deposit the TDS amount and file form 26QB.
Hi @Aditya_Tawade,
You might have received the demand due to the property values being entered wrongly while filing Form 26QB.
This seems to be a case-specific query and more context would be required to give a resolution for the same. In case you need our help in analyzing the issue, you can
book a MEET, wherein, one of our tax experts will connect and help you out.
Hello @Surbhi_Pal
I have downloaded the justification form and attached a screenshot. I have a question regarding the stamp duty calculation. The total value of the property is 76,00,000, which I entered while filling in both accounts for myself and my wife. My confusion is about how to calculate the stamp duty in this case for the form. Did I make a mistake by inputting the stamp duty value as 76,00,000, or should it be half, which is 38,00,000?
Hey @Aditya_Tawade,
Under the stamp duty value, the amount proportionate to your share in the property needs to be added. Hence, if you are a 50% co-owner, the stamp duty value should be half of the total value.
However, under ‘total value of consideration’, you need to enter the entire sale value.
Hope this helps!
Hi,
I am based in mumbai, purchasing a resale flat for INR 2 crores. I have paid 1 crore as advance on March 15 2024 and balance through bank home loan. However, the registration for the resale is fixed for April 12th 2024 after which the bank will release the balance payment to seller.
My questions are as below
a. When should I deposit the 1% TDS?
b. What assessment year should i choose while depositing TDS ( I presume this will be asked)
Thanks & Regards,
A
Hello @anands
TDS at 1% has to be deducted and paid to government on every instalment of payment you make.
Thus in your case TDS has to be as follows:
- 1st installment - 1 crore - You paid in March 2024
Due date to pay TDS - Last date - 30th April - 2nd Installment - 1 crore - Bank will pay in April 2024
Due date to pay TDS - Last date - 31st May
Form 26QB has to be filed in case you are purchasing a property from a resident Indian and value of property is more than 50 lakhs. It is tax payment cum return filing, so payment and return filing will be done at same time.
We do have expert assistance plan where a CA from our team can help you to file the same. You can book a slot using the below link:
@CA_Niyati_Mistry … my correction statement shows “Submitted to ITD”. How much time it takes to process from here?
Hey @Partho_Karmakar,
It would take around 7-10 days.
Thank you for your reply appreciate your help. I want to know what will be the “Amount paid/credited currently (B)”. It would also be half as there are two buyers of a valuation of 76,00,000/- ?
Hey @Aditya_Tawade,
Yes, the value needs to be entered on a proportionate basis. If the buyers are 50-50 owners, then the amount would be half of the total property value.
@Surbhi_Pal
I have a query. I bought a plot of 60 lakhs from 3 seller with equal share of 20 lakhs each I understand that i have to fill 3 form 26QB please advice what i should fill in the sections
a)TOTAL VALUE OF CONSIDERATION
b)TOTAL STAMP DUTY VALUE OF PROPERTY
c)Amount paid / credited currently
Should i divide 60 lakh by 3 for a b & c and pay 20,000 for each 3 challans ?
Hey @naresh12,
You will have to enter the total property value under the field “Total value of consideration”. In the other two fields i.e. “stamp duty value” and “amount paid”, the values need to be entered on a proportionate basis depending on the ownership of co-buyers.
@Surbhi_Pal thank you. But i meant 1 buyer and 3 sellers, so does the same apply here ?
Hey @naresh12,
Yes, the same would apply in your case as well.