Tds on purchase of joint ownership property (flat)
chetan
(Querist) 12 December 2016
This query is : Resolved
Dear Experts,
we are buying (me and my wife) a property (flat) which is a joint ownership (50% each).
Query
1) TDS 1% of the agreement value should I have to pay equally on the pan cards of the joint owners ?
2) should the joint buyers also have to split the 50% TDS and pay each to the joint owners pan card separately?
Rajendra K Goyal
(Expert) 12 December 2016
Whether sellers are holding the property jointly?
Both of the purchasers have to deduct the TDS separately on 50% of purchase value and deposit in Government account.
Discuss with local tax consultant.
may raise query in CA club of India.
Kumar Doab
(Expert) 12 December 2016
Agreed with Mr. Goyal.
Ms.Usha Kapoor
(Expert) 13 December 2016
Relevant FAQ on NSDL site is reproduced as under:
How will transactions of joint parties (more than one buyer/seller) be filed in Form 26QB?
Online statement cum Challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. E.g. in case of one buyer and two sellers, two forms have to be filled in and for two buyers and two seller, four forms have to be filled in for respective property shares.
Your 1st question yes! Your second question yes.
chetan
(Querist) 13 December 2016
Ms.Usha Maam, Thank you for your precise reply.
one small query again, if one of the joint buyer is a housewife and all the money paid for the purchase is by husband. Does this change the above. if yes do have to fill Form26QB for 2 sellers and 1 buyer?
Rajendra K Goyal
(Expert) 13 December 2016
If wife is purchasing as joint owner, she is supposed to deduct TDS and deposit the TDS, fill 26QB, download TDS certificate and issue.
chetan
(Querist) 13 December 2016
So correct me if I am wrong. Even if one of the joint buyer is non income earning the TDS on property is based on share in the property and not who is paying for the property.
Ms.Usha Kapoor
(Expert) 13 December 2016
Whether wife is earning or not they can come into an arrangement of joint ownership of this sort. Or she may have had some savings out of which she may have contributed towards housing loan.Court also respects such legal arrangements.If you appreciate this answer please give me all my profile likes.
Rajendra K Goyal
(Expert) 13 December 2016
You, should discuss in detail with local tax consultant.
Kumar Doab
(Expert) 13 December 2016
Local I Tax consultant can certainly examine and render considered opinion.
Ms.Usha Kapoor
(Expert) 31 December 2016
NO!It will not change the above. If wife is the buyer 2 forms of 26Q they 1 buyer 2 sellers they will have to fill out.
