T d s

Save Share

This query is : Resolved

jagdish ahuja (Querist)

15 November 2014 i sold my residential flat in may 2014- it is in joint name of my wife 50% but tds of 1% was deducted only in my name not half as required what should i do kindly guide

actually half of TDS should have been in my wife name full is paid i.e. one percent of sale value in my name kindly help thanks

Sanjana

Sanjana (Expert)

15 November 2014 The purchaser must have deducted TDS on your name only because he must have paid the entire amount of Sales Value in your Bank Account not knowing that the House is in Joint Name. You should have informed the Purchaser and received the amount 50% in your Bank Account and 50% in your wife's Bank Account. It would also have been a clearer picture then.

However there is no issue even if the entire TDS is deducted in your name. You can always compute as follows:

Suppose Sales Value is 100
Indexed Cost of acquisition is 80
TDS is 1
Husband Wife
Sales Value 50 50
ICOA 40 40
Income 10 10
Capital Gains Tax 1 1
@ 10%
Less: TDS 1 0
Tax Payable 0 1

You will have to claim the entire TDS amount in your Return of Income

The only catch here is when the Purchaser files the TDS Return he will show the entire Sales Consideration to your PAN Number, whereas you are showing Sale value only of 50%. Hence you will have to prove to the Assessing Officer (Income tax) that actually your wife is 50% owner and hence 50% Sales value belongs to her and has been taken in her tax Returns.

Message likes : 1 times

jagdish ahuja

jagdish ahuja (Querist)

23 November 2014 thanks sanjana but the buyer was aware of two joint holders seperate cheques were given and also deposited in seperate bank accounts it seems an error of the buyer is there a way of recetification of tds paid in the traces 26as so as to divide the tds paid into two kindly help thanks again

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now