How to Fill Out Form 26QB for TDS in Case of Multiple Buyers and Sellers

Filling out Form 26QB, the tax deduction at source (TDS) form for the sale of property, when dealing with multiple buyers and sellers requires careful attention to detail. This comprehensive guide will walk you through the process and help ensure accurate submission.

Steps to Fill Out Form 26QB for Multiple Buyers and Sellers

Basic Information

Date of Agreement: Enter the date on which the sale agreement was made. Total Sale Consideration: Enter the total sale amount for the property being transferred.

Buyer Details

Buyer Type: Select the appropriate type for each buyer. PAN of Buyer: Enter the Permanent Account Number (PAN) for each buyer. Repeat the PAN entry for each buyer if there are multiple buyers. Share of Buyer: Allocate the share of each buyer in the property transaction. For example, if two buyers are purchasing the property equally, each would have a share of 50%.

Seller Details

Seller Type: Select the appropriate type for each seller. PAN of Seller: Enter the PAN for each seller. Similar to buyers, repeat the PAN entry for each seller. Share of Seller: Allocate the share of each seller in the transaction. If there are two sellers selling equally, each would have a share of 50%.

TDS Calculation

TDS Amount: Calculate the TDS based on the applicable rate, which is currently 1% for residential property sales. The TDS should be calculated on the total sale consideration amount.

Payment Details

After filling in the details, select the payment mode online or offline. If paying online, you will be redirected to the payment gateway to complete the transaction.

Verification and Submission

Review all entries to ensure there are no errors. Submit the form and note down the acknowledgment number for future reference.

Additional Points to Consider

Form Submission

Each buyer must fill out the form reflecting their respective share in the property transaction. They must also ensure that the total TDS amount is correctly calculated and paid.

If the buyers and sellers have different shares, it may be necessary to submit separate forms for each buyer-seller pair to accurately reflect the TDS deduction.

Acknowledgment

Once the payment is made, an acknowledgment will be generated. It is essential to keep this for your records as it may be required for future tax filings.

Conclusion

Filling out Form 26QB with multiple buyers and sellers requires careful attention to detail, particularly regarding PANs and the allocation of shares. Ensure that all information is accurate to avoid any issues with the TDS payment and compliance. If you are uncertain, it may be beneficial to consult a tax professional or a chartered accountant for assistance.