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.

Amol S Joglekar

Amol S Joglekar (Expert)
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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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Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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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

https://taxguru.in/income-tax/notices-related-tds-immovable-property-purchase.html

Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615

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CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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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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Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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10 May 2016 Thanks Sunil sir for supporting my reply.

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