When to deduct TDS for property purchased?

TDS & TCS TDS Return Forms
1

Hello,

I have one Query regarding TDS. I paid 10% amount of the property value to seller. Now submitting TDS, So do I need to mentioned under Amount credit to 10% or the whole amount i.e. 100% because rest amount i.e. 90% he will received via home loan.

Also I am buying property with co-applicant to my wife. Do i need to fill separate TDS Form 26QB.

2

Hello @Sonia_Sharma ,

You need to deduct TDS on the total property value (100%), not just the 10% you’ve paid upfront. TDS must be deducted and Form 26QB must be filed every time you make a payment to the seller.

Here’s how it works:

  • Since you’ve paid 10% now, you need to file a 26QB for that amount.
  • When you pay the remaining 90% (through a home loan), you’ll deduct TDS on that and file another 26QB.

Regarding your wife’s involvement:

  • If she is only a co-applicant in the loan (not a co-owner), no separate filing is needed.
  • If she is a co-owner, both of you must file separate 26QB forms for each payment.

For a step-by-step guide on filing Form 26QB, click here.

FAQs on form 26QB

3

Thanks for your revert. Just want to clear one more doubt since I Pay 10% on 27Jan 2025 and loan disbursement date will be 21Feb, 2025. So can i submit TDS for whole amount i.e. 100% or still need to separate first for 10% then for 90%?

4

Ideally Form 26QB must be filed within 30 days from the end of the month in which TDS is deducted.

So for the 27th Jan payment, the due date will be 28th Feb’ 25 and for the 21st Feb payment it will be before 30th March 2025.

5

Thanks for the Info.
So Can I submit the TDS for whole property valuation in one Go. Suppose Seller received check from Bank on 21st Feb. So Can i submit the TDS today also for whole property valuation either on 15or 16 Feb.

6

Hi @Sonia_Sharma ,

You will not be able to enter future dates in the 26QB. So you can file the form on 21st Feb. Techincally you should not file a single form the 2 payments. As per the law, the buyer should deduct TDS everytime they do a payment.

7

In the case of immovable property (excluding agricultural land), TDS is required to be deducted on the purchase price of the property. Buyers are required to deduct 1% TDS at the time of payment or when crediting the seller. The payment should be deposited with the government within 30 days using Form 26QB.