TDS on joint property
This query is : Resolved
20 January 2021
Hi, please guide.
My client is buying property in joint name from joint sellers of the property. There is no mention of ownership ratio in the joint property owned by the sellers. The property is in the name of Wife and Husband. The sellers has also taken loan in joint name. However, the Husband says majority of investment has gone from his income. How the TDS is to be deducted in this case? Is it to be 50:50 as ownership ratio is not there in agreement? If yes, how the wife and husband show capital gain in their returns? If wife's investment is negligible, there would be hefty gain in her account and if Husband is the main contributor, there would be loss in his account. What is the correct treatment and what the buyers should do while making payment and deducting TDS?
My client is buying property in joint name from joint sellers of the property. There is no mention of ownership ratio in the joint property owned by the sellers. The property is in the name of Wife and Husband. The sellers has also taken loan in joint name. However, the Husband says majority of investment has gone from his income. How the TDS is to be deducted in this case? Is it to be 50:50 as ownership ratio is not there in agreement? If yes, how the wife and husband show capital gain in their returns? If wife's investment is negligible, there would be hefty gain in her account and if Husband is the main contributor, there would be loss in his account. What is the correct treatment and what the buyers should do while making payment and deducting TDS?
21 January 2021
Buyers should deduct TDS 50:50 unless otherwise requested. Husband can request the ratio at which TDS to be deducted, buyer can deduct accordingly.
Husband and wife can show capital gains based on their investment.
Husband and wife can show capital gains based on their investment.
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