Capital Gain Tax Implications

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A client has paid capital gains tax but the property TDS was incorrectly deducted using the wife's PAN, appearing on her tax statement. The wife has not filed an income tax return. The primary issue is how to claim the £76,000 TDS refund. A potential solution involves the deductor revising Form 26QB to reflect the husband's PAN, followed by revising the husband's income tax return once the TDS is correctly reflected in his 26AS. This situation may also raise questions from the tax department if the wife's ITR remains unfiled, especially if she is the property owner.

Nirad Sahoo

Nirad Sahoo (Querist)

11 March 2020 Hello,
One of my client (Husband) filed income tax return showing capital gain income and paid tax also however buyer deducted property TDS @ on 1% (Rs.76000/- ) wife pan and the same is reflecting in wife pan and It returns of wife is not filed.
1. Now my question is how to get the refund of TDS 76000 of the property value 76,00,000/-. what the best way to sort out the above issue?

swasti

swasti (Expert)

12 March 2020 The deductor may be requested to revise the Form 26QB by quoting Husband's PAN instead of wife's. Secondly the Income Tax Return of Husband be revised after TDS amount is reflected under his PAN in 26AS.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

05 November 2021 It seems wife is the owner of the property. Query may be raised by department, if wife's ITR not filed. The query requires more information for better solution.

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