04 October 2013
Me and my wife have booked an under construction flat at Bangalore whose value is 52 lakhs. We have paid 9 lakhs to builders. Remaining money will be paid as per construction progress in installment. I think we have to fill up form 26QB twice i.e. one for my wife and other for me. If this is correct, So while filling 26QB form, Amount Paid to seller will be Rs 450000 in each Form 26 QB and TDS will be Rs 4500. Hence total TDS for both of us will be Rs 9000. Please let me know if this is correct, assuming 50 % share in the property between me and my wife. Also do I need to do the similar thing for each installment when we pay builder?
05 October 2013
You can deduct and deposit the TDS by both of you in the proportion of share holding. Alternatively you can split up tds amt. on the basis of actual contribution by each owner.
Since this is residential property,TDS shall be deducted at the time of payment of Installment or actual due of Installment whichever is earlier.
09 October 2013
Thanks for the clarification. Actually my wife has no income, but she is joint owner. Bank has given loan based on my income. In that does it make sense to divide TDS between us and deposite the amount with income tax accordingly ? Or can I deposite TDS against my PAN only ?
10 October 2013
Practically there is no issue even you are deducting TDS under both's name as there is no revenue loss to Department and Seller can take a credit on the basis of valid PAN.
But Since your wife has no income , why should take the trouble to deposit the TDS under both's PAN and file the separate return. It will increase unnecessary efforts. So deposit the TDS under your PAN.
05 March 2014
So while filing form 26QB it asks Whether more than one Transferee/Buyer. In that case can I select “Yes” and pay the entire TDS on my PAN ? Reason being if I select No, there might be compliance issue as the Sub register report the PAN number of every buyer to Income Tax. Kindly clarify.
CAclubindia
