Income Tax CG

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This query is : Resolved

Quick Summary

This discussion addresses a common query regarding Capital Gains (CG) tax when a jointly owned property is sold. The core issue is that Tax Deducted at Source (TDS) was only applied to one of the three registered owners. The advice given is that the capital gain and the sale transaction must be declared in the Income Tax Returns (ITRs) of all three owners. Furthermore, the TDS can be allocated to the other owners' PANs by rectifying the relevant TDS schedule in their returns.

Komal

Komal (Querist)
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09 July 2025 Case:-

A property has been sold in the name of 3 persons (i.e. registry in the name of three persons equally) but the TDS on the sale of said property has only been deducted on only one of the above 3 persons.

Query:-

1. My query is that whether I have to show the capital gain arising out of the sale of the said property in the ITR of all the 3 persons or whether I should show only in the ITR of the person in whom TDS is deducted ?

2. Whether it will be appropriate to file the entire sales consideration & claim the total TDS deducted in the ITR of only one person in whom TDS is deducted ?
It is also noted here that if I do not show the entire amount of sales consideration in the ITR of the person in whom entire TDS is deducted then I can not claim the amount of entire TDS deducted in that one person ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2025 The TDS should have been deducted over the payment to all three sellers.
1. TDS & the sell transaction should be declared in all three ITRs.
2. The TDS can be distributed in another PAN by rectifying the column in Schedule TDS2.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2025 Good luck...

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