I have purchased an immovable property and there are more than 1 sellers one of which is NRI. 1) How can I proceed for TDS payment in this matter? 2) For Resident seller in Form 26QB, what amount to be written in Full amount of Consideration? 3) Any mention to be made of NRI seller in Form-26QB, or separately payment is to be done u/s 195 and return to be filed in Form 27Q?

Reply— 1) Section 194IA of income tax act, 1961, deals with with sale of property by residents and TDS @1% is to be deducted on such sale by resident seller provided the consideration for sale of property exceeds Rs. 50 lacs.

Online statement cum challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. In case of joint sellers, individual share need to disclose while filing Form 26QB. Amount paid to NRI is not required to mention in 26QB.

2) In case of non resident seller, TDS is required to be deduct under section 195 of Income Tax Act. Section 195 deals with sums payable to a non-resident which are chargeable to tax in India under the Income Tax Act 1961. Buyer of property is required to deduct income-tax thereon at the rates in force.

As per section 112, Long term capital gains on sale of a capital asset is to be taxed at the rate of 20%.

Short-term capital gain on sale of a capital asset (except on sale of equity shares and equity oriented mutual funds) is to be taxed at the slab rates prescribed under the Finance Act applicable to the year of sale.