One of my client is a co-owner in a property leased to a business firm. The equal shares of each co-owner has been defined in the co-ownership agreement. All the co-owners operated a joint bank account and entrusted my client in charge. The business firm transferred the rent directly into the joint account after deducting TDS @ 10%. The whole TDS was deposited against my client's PAN No. only. So, TDS got reflected only in my client's Form 26AS. Can I show lower income in my client's ITR as opposed to the total income shown in his 26AS? I will have to claim the whole TDS in my client's ITR and make all the other co-owners pay tax for the rent due to them without any claim of TDS. Is there any other option?
27 September 2017
I agree with Mr. Amol. A co-ownership is categorised as Body of Individual for Income tax purpose. As such, no liability or benefits can b transferred from one co-owner to another except actual transfers.
In this case you will have to claim the whole refund against your client's pan and make pmt from ur client's bank account to other co-partners.
Prospectively u can request the business firm to charge TDS against each co-owner and also make payment separately to each co-owner in d joint account. The business firm may demand a new lease agreement in this regard.
CAclubindia
