Tds on joint property
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 May 2016
I am selling an under construction property worth 55 lacs now; it is in joint name of me and my wife. My wife has not contributed to any of the builder payments for the property & there is no loan. Now, there is a confusion regarding 1% TDS; If (a) the buyer deposits the 1% TDS against my PAN number, is it OK and hassle free to do? or (b) buyer deposits 0.5% against both of us - but then how will capital gains for both of us be computed separately. Please advice which of (a) or (b) is better and hassle free.
10 May 2016
Since you are claiming that your wife has NOT contributed anything......means her name was added for family convenience. So capital gain will arise to you. TDS to be done for your PAN only. (You need to stick to your stand that your wife has NOT contributed anything)
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10 May 2016
With due respect, I am not agree with expert.
If property is in joint name it means there are two seller so TDS will be deduct as per their share and capital gain will be also calculated for both.
Hopefully following article will be helpful for better understanding :
https://www.caclubindia.com/articles/understanding-tds-on-purchase-of-immovable-property--26698.asp
http://taxguru.in/income-tax/notices-related-tds-immovable-property-purchase.html
Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615
Note : If you find our reply useful. Please Score us by clicking on "THANK USER"
If property is in joint name it means there are two seller so TDS will be deduct as per their share and capital gain will be also calculated for both.
Hopefully following article will be helpful for better understanding :
https://www.caclubindia.com/articles/understanding-tds-on-purchase-of-immovable-property--26698.asp
http://taxguru.in/income-tax/notices-related-tds-immovable-property-purchase.html
Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615
Note : If you find our reply useful. Please Score us by clicking on "THANK USER"
Message likes :
9 times
10 May 2016
If wife is the joint owner in the property, she has to pay capital gain on her share in the property. Buyer is also liable to deduct TDS on both seller as per their holding share. However income of wife will be clubbed in the hands of husband as per section 27 of income tax act because he is considered as deemed owner of the property which is transfer to wife without consideration.
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3 times
10 May 2016
Thanks Sunil sir for supporting my reply.
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3 times
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