Capital Gains on sale of residential flat

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This discussion addresses how to report capital gains tax when a jointly owned flat is sold. The main issue is correctly reflecting individual shares of the sale consideration and claiming Tax Deducted at Source (TDS) when the purchaser incorrectly reported the entire TDS against one spouse's PAN. The proposed solution involves spouses clarifying their individual shares on their Annual Information Statement (AIS), declaring only their respective sale consideration in their Income Tax Returns (ITRs), and then using Rule 37BA(2) to correctly allocate the TDS credit between them.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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20 July 2026 Assessee sold flat for 1 cr which was jointly held with wife. Consideration was received Rs.50L each in both accounts. However the purchaser has shown tds payment of Rs.1L in Husband PAN and is reflected in his Form 26AS.
AIS of both shows sale of immoveable property at Rs.1 Cr each instead of Rs.50L each
My question is how to show capital gains in their individual return of income so that TDS is claimed in full and also there is no query from Income Tax Department

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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21 July 2026 To resolve the issues without triggering a tax notice: First, both spouses should submit feedback on their AIS stating "Information is partially correct" to clarify their 50% share. Second, they must each declare only ₹50 Lakhs as the sale consideration in Schedule CG of their respective ITRs. Finally, to fix the TDS error, they must utilize Rule 37BA(2) in Schedule TDS; the husband will retain ₹50,000 of the TDS and transfer the remaining ₹50,000 credit to the wife by entering her PAN in his return, while she claims that exact amount by citing his PAN in her return.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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21 July 2026 As per winman software As per Rule 37BA(2)(i) if the deductee files a declaration with the deductor and the deductor reports the TDS in the name of another person, then only credit for TDS shall be given to him
In my case its not possible to report to the deductor and deductor is not going to amend form 26QB filed.
so husband has to claim full TDS only
what is the way forward ?

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