(Q1.)What type of demand may be generated after processing of 26QB challan cum statement? - Following type of defaults may be generated after processing of 26QB challan cum statement:
1. Short Deduction: Short deduction is computed when the rate at which TDS Deducted is less than 1%.
Scenario - 1: In Case of "Payment Type": Lumpsum TDS needs to be deducted on ‘Amount Paid/Credit’ or 'Total Stamp duty value of the Property' whichever is higher.
For e.g:
A. Total Value of Consideration (in Rs.) = 100,00,000
B. Amount Paid/ Credit (in Rs.) = 100,00,000
C. Total Stamp Duty Value of the Property (in Rs.) = 80,00,000
D. Amount on which TDS to be deducted= 100,00,000
| Sr. No | Section Code | Payment in instalment or lump-sum | Amount Paid/Credited Currently as per 26QB (Rs.) | Total Stamp Duty Value of the Property (Rs.) | TDS Deposited as per challan(s) (Rs.) | Rate at which Deposited as per 26QB (%) | TDS Rates as per Act (%) | Total TDS Deductible (Rs.) | Short Deduction |
|---|
| 1 | 194IA | lumpsum | 10000000.00 | 8000000.00 | 50000.00 | 0.50 | 1.00 | 100000.00 | 500000.00 |
Scenario - 2: In Case of "Payment Type": Installment, Last Instalment - No
TDS needs to be deducted on 'Amount Paid/Credit currently'
For e.g:.
A. Payment in instalment or lump-sum = instalment
B. Whether it is last instalment – No
C. Amount paid/ credited currently = Rs. 30,00,000
D. Amount on which TDS to be deducted= 30,00,000
| Sr. No | Section Code | Payment in instalment or lump-sum | Whether it is last instalment | Amount Paid/Credited Currently as per 26QB (Rs.) | TDS Deposited as per challan(s) (Rs.) | Rate at which Deposited as per 26QB (%) | TDS Rates as per Act (%) | Total TDS Deductible (Rs.) | Short Deduction |
|---|
| 1 | 194IA | Installment | No | 3000000.00 | 15000.00 | 0.50 | 1.00 | 30000.00 | 15000.00 |
Scenario - 3: In case of 'Payment Type': Installment , Last Instalment - Yes
TDS needs to be deducted on [(Amount Paid/ Credit currently + Total amount paid/ credited in previous instalments, if any (in Rs.) or Total Stamp Duty Value of the Property whichever is higher) less Total amount paid/ credited in previous instalments] for e.g.:
A. Total Value of Consideration = Rs. 1,00,00,000
B. Total Stamp Duty Value of the Property = Rs. 90,00,000
C. Payment in instalment or lump-sum = instalment
D. Whether it is last instalment - Yes
E. Amount paid/ credited currently = Rs. 30,00,000
F. Total amount paid/ credited in previous instalments = Rs. 70,00,000
Here, Calculation will be on Higher Amount between [ (E + F) or B] = i.e., Rs. 1,00,00,000 or Rs. 90,00,000
Amount Balance [Rs. 1,00,00,000 – Rs. 70,00,000 (already paid)] = Rs. 30,00,000 will become Amount on which TDS should be deducted.
| Section Code | Total amount paid/ credited in previous instalments (Rs.) | Amount Paid/Credited Currently as per 26QB (Rs.) | Total Stamp Duty Value of the Property (Rs.) | TDS Deposited as per challan(s) (Rs.) | Rate at which Deposited as per 26QB(%) | TDS Rates as per Act (%) | Total TDS Deductible (Rs.) | Short Deduction (Rs.) |
|---|
| 194IA | 7000000.00 | 3000000.00 | 9000000.00 | 15000.00 | 0.50 | 1.00 | 30000 | 15000.00 |
Payment in instalment or lump-sum = instalment and Whether it is last instalment - Yes
2. (a) Late Payment Interest: When Deductor deposits the TDS after due date of challan deposit, it is a case of late payment and interest will be charged accordingly. Late payment interest will be charged @ 1.5% per month from the date of tax deduction to date of tax deposition.
Late Payment Interest Computation u/s 200A read with Sec 201(1A).
| Sr. No | Date of Deduction as per 26QB (dd-mmm-yyyy) | Due Date for TDS Deposit(dd-mmm-yyyy) | Date of Deposit as Per OLTAS (Challan)(dd-mmm-yyyy) | TDS amount consumed from challan (Rs.) | Period of Delay in Months | Interest on Late Payment U/S 201 (1A) (Rs.) (Col 5 * Col 6 *1.5% |
|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 1 | 31-Jan-17 | 2-Mar-17 | 10-Mar-17 | 6620 | 2 | 198.60 |
Note: As per Rule 30(2A), notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IA shall be paid to the credit of the Central Government with in a period of 30days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.
3.(a) Late Deduction Interest: When Deductor does not deduct the TDS amount on the date of Payment/Credit, then, Interest on Late deduction is computed i.e., if the date of deduction is after the date of payment credit, then the late deduction interest is computed. Late deduction interest is charged @ 1% per month from date of payment/credit to date of tax deduction.
Late Deduction Interest Computation u/s 200A read with Sec 201(1A)
| Sr. No | Date of Payment/credit as per 26QB (dd-mmm-yyyy) | Due Date of Deduction (dd-mmm-yyyy)* | Date of Deduction as Per 26QB (dd-mmm-yyyy) | TDS Deductible (1% * Amount Paid/credited as per 26QB) (Rs.) | Period of Delay in Months | Interest on Late Deduction U/S 201 (1A) (Rs.) (Col 5* Col 6)*1% |
|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 1 | 27-Feb-19 | 27-Feb-19 | 10-Mar-19 | 6620 | 2 | 132.40 |
* Due date of deduction will be date of payment/credit whichever is earlier.
3.(b) Interest on Short Deduction interest is calculated @ 1% per month or part of the month from the date on which tax was deductible to the date of the processing of statement. Please note that 'interest on Short Deduction' is provisional in nature. As you pay the short deduction default amount, the corresponding interest (i.e, interest on short deduction) would be reversed and the "Interest on Late payment" or "Interest on late deduction" shall be levied appropriately, as the case may apply.
Short Deduction Interest Computation u/s 200A read with Sec 201(1A)
| Sr. No | Short Deduction (Rs.) | Date of Payment/Credit as per 26QB (dd-mmm-yyyy) | Order Passed Date as per intimation(dd-mmm-yyyy) | Period of Delay in Months | Interest due to short deduction (Rs.) (Col 2 * Col 5 * 1%) |
|---|
| 1 | 2 | 3 | 4 | 5 | 6 |
| 1 | 83268.00 | 7-May-19 | 12-Feb-21 | 22 | 18,318.96 |
4. Late Filing Fee: As per section 234E, where a person fails to file the TDS/TCS statement within the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs.200 per day during which the failure continues. Fee amount will not exceed TDS deductible as per 26QB filed.
Late filing fee Computation u/s 234E
| Sr. No | Due Date of Filing of 26QB*(dd-mmm-yyyy | Date of deposit of challan(dd-mmm-yyyy) | Delay in Filing (No. of Days) | Fee per Day (Rs.) | Total Fee (Rs.) (Col4 * Col5)) | Total TDS Deductible (1% * Amount Paid/credited as per 26QB) (Rs.) | Fee Payable = Min (Col 6, Col 7)(Rs.) |
|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 1 | 30-Mar-19 | 02-Apr-19 | 3 | 200 | 600 | 6620 | 600 |
Note-1: As per Rule 30(2A), notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IA shall be paid to the credit of the Central Government with in a period of 30days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.
Notes:
1) Interest is chargeable for every month or part of the month on the amount of such tax.
2) A month is considered to be a calendar month as per general clauses act.
(Q2.) How to pay 26QB (TDS on Sale of Property) demand generated by CPC-TDS?
- Demand payment for TDS on 'Sale of Property' can be done through Income tax Portal (www.incometax.gov.in). For further information, please refer E"Tutorial Demand Payment for: TDS on Property(26QB) / Demand Payment Rent of Property(26QC)/Demand Payment for TDS on Resident Contractors And Professional(26QD), Demand Payment for TDS on Transfer of Virtual Digital Asset(26QE).
(Q3.) Where Buyer can see the details of defaults generated for Form 26QB?
- Justification Report consists of various defaults/errors identified by the Income Tax Department (ITD) while processing the form 26QB filed by buyer for a particular transaction on sale of property during a financial year. It provides detailed information/calculation about the defaults.
(Q4.) Is there any procedure to Waive off the amount of demand received for late filing and interest on late payment?
- No, Demand for late filing and interest on late payment cannot be waived off.
(Q5.) Buyer has not deducted any TDS on property as he has already paid the booking amount of property to the seller. Does he need to file 26QB and make TDS payment?
- Yes, Buyer needs to file form 26QB and make TDS payment after payment of booking amount. Buyer will be liable to pay defaults as per the details mentioned in form-26QB (Late deduction, Late payment, Late filing).
(Q6.) I am trying for payment of Late filing fee U/S 234E for form 26QB through online mode. There is no column available as Late filing fee in the Challan. How can I proceed for making such payment?
- Buyer can select "Other" option in the Challan for making the payment of Late filing fee u/s 234E if column for Fee is not available.
