Query regarding TDS for property sale

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This discussion addresses the correct procedure for deducting Tax Deducted at Source (TDS) when a jointly owned property is sold. The buyer's query centres on whether TDS should be deducted separately for each seller (husband and wife) or if it can be handled under a single transaction. The consensus is that TDS should be calculated and deposited for each seller individually, even if the sale deed and payment are processed jointly, reflecting their respective ownership shares.

Aniruddha Ghosh

Aniruddha Ghosh (Querist)
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29 July 2024 Property is in name of husband and wife which they planned to sell. Buyer is single individual and has prepared a single sale deed and single demand draft mentioning both seller name (husband and wife name) . The demand draft planned to deposit in joint savings account of husband and wife where wife is primary holder.
Question is:
Does the buyer has to deduct tds for both husband and wife separately splitting the 1% of sale amount or
It can be deducted from only one seller ( husband or wife) and mark multiple seller option as yes since there is only one sale deed and one draft. In this case should the tds be deducted be with wife pan only since the draft is planned to be deposited to a joint account where wife is primary?
Pls suggest the right approach.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2024 Yes, buyer should deduct 1% TDS from the shares of both the sellers & fill two forms 26QB one for each.

Aniruddha Ghosh

Aniruddha Ghosh (Querist)
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29 July 2024 Thank you sir for your response. No explicit share details is mentioned between sellers. Buyer side CA suggested only one payment can be done for tds since it is a single sale deed and single demand draft process. Do you see any issue if buyer deducts overall sale 1 % tds entire amount from wife pan and mark it as multiple seller as yes instead of splitting into 2 challans?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 July 2024 In agreement only single seller will sign?

Aniruddha Ghosh

Aniruddha Ghosh (Querist)
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30 July 2024 Both seller will sign the single sale deed

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 July 2024 Sale deed of one property is always one, while TDS deduction for each seller is as per his/her ownership in the property.

Aniruddha Ghosh

Aniruddha Ghosh (Querist)
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30 July 2024 Thanks for clarifying sir.