Form 26qb

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  1. bhaveshagarwal

    bhaveshagarwal New Member

    Apartment Sale agreement value: 28 Lakhs (which mentions the UDS)
    Apartment Construction agreement value: 42.5 Lakhs (which mentions the construction)
    The total value = 70.5 lakhs including all taxes, car parking, amenities. Apart from this 70.5 Lakhs, I will have to pay for registration cost at the time of possession of the flat to get the khata transfer in my name (stamp duty will be calculated on the property value). My question is

    1. Whether the property value be 28 lakhs or total 70.5 lakhs, people say that they declare only the sale agreement value which is 28 lakhs to save on the stamp duty for registration (but sale agreement is just for the land and not for the flat). Some people say that this registration value will be calculated on government guidance value, not sure how would we calculate that or is it the same as this 28 lakhs?
    2. I am declaring full 70.5lakhs value for paying 1% TDS from form 26QB. Is it right? Shouldn't it match with the property value while registering it?
    3. What is the URL where I can see the formula for calculating this stamp duty for registration in case of BBMP (Bangalore apartments)

    Thanks in advance
  2. ZED

    ZED Well-Known Member

    It appears that the builder has deliberately bifurcated the amount into one relating to agreement to sale of land and other other relating to agreement for construction.

    This is to avoid TDS of 1%. Do talk to them about TDS and see what they say.
    I also wish to know what is the Service tax which he would be charging.

    For TDS purpose, you should take that value which is actually paid/payable by you.

    No, don't go for stamp duty value, see the contracted value.
  3. bhaveshagarwal

    bhaveshagarwal New Member

    Thanks, do you mean here that contracted value = sale agreement+construction agreement?
  4. ZED

    ZED Well-Known Member

    To be on safe side YES.
    Because this is actually a bifurcation of a single transaction.
    Is it like that you had the right to have the building constructed by someone else but you can purchase the land from him?
    I guess No
  5. bhaveshagarwal

    bhaveshagarwal New Member

    Thanks! Will follow up with him also.

    My confusion then is how people are able to register their properties on much lesser price (they say it is government guidance value) than the actual price paid, don't they require to show all the agreements with builder while registering the property?
  6. ZED

    ZED Well-Known Member

    They have misconception. Or they are doing deal in black. Which will cost them more in future. Govt. has ways to acquire the info. The system is integrated now. Its not that easy to deal in black now.

    It is also clearly written at the Site of TIN that value has to be the sale consideration.
    In case property is purchased at less than the stamp duty value, then THEY DO NOT NEED TO DEDUCT TAX AT 50C value. Tax has to be deducted only at the value of sales consideration.

    Check the charging section itself
    194-IA. (1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon.

    (2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees.
  7. vinothkannan

    vinothkannan New Member

    If there are 2 buyers(hub and wife) and 1 seller and i split and make a delayed TDS payment in 50:50 proportion using 2 challans..
    1,how these 2 buyers are linked in the system as they share the same property . there is only one field in form26QB which just asks whether there are more buyers . other than that i do not see any way to track if 2 or more buyers are sharing the same property ...

    2, since there are 2 TDS paid using 2 different challans on the same day as there are 2 buyers and lets assume the delay is 10 days will each buyer have to pay a late fee of 200x10 = 2000 ? will each buyer get a notice to pay 2000 each in this scenario. if so multiple buyers will double or triple the penalty for the same TDS amount.
  8. ZED

    ZED Well-Known Member

    The 2 forms are different and hence TDS certificate (form) will have different no.s.

    Yes, because in this case we have 2 assessees and since delay has been made by both of them, the fees shall also be payable by both of them.
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