| Question And Answer | |
|---|---|
| Subject: | Can we pay TDS on entire amount even though payment will be made in installaments? |
| Category: | Income-Tax |
| Querist: | Kishore J |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | advance payment, Tax deduction at source, TDS |
| Date: | November 13, 2021 |
Yesterday, we purchased one residential flat for total consideration of 7912440 Rs.
the builder has asked us to pay 79124 rs via TDS.
Since there are 3 buyers (3 fund contributing buyers) and one seller, three FORM 26QB has to fill.
After selecting “YES” in the section, are there any multiple buyers involved, in what to do next?
Question 1 –
What is required to fill the section of “Total Value of Consideration (Property Value)*” is it 7912440 or 7912440/3 = 26374Rs (see image 1)
What is required to fill in a section of the amount paid/credited? (see image 2)
is it 7912440 or 7912440/3 = 26374Rs (see image 2)
Question 2 –
Builder is asking entire TDS even though payment will be made in instalments, can we pay the entire TDS to the builder in one go and not at the time of making each instalment payment to the builder? as i don’t have any problem paying in one go. (since there is no revenue loss to the govt, assuming they won’t be bothered if we pay in one go)
Reply and thanks
As we understand, there are three buyers and all of them are contributing towards the purchase of the immovable property.
Each buyer has to deduct tax on their share of payments. It is advisable to deduct tax once on the first payment as compared to deducting tax on each instalment as it significantly reduces the cost of compliance and there is no possibility of default in statutory compliance.
As regards for filling the form it is desirable to approach the tax consultant , who can guide properly .