TDS on purchase of immovable property multiple buyers with one buyers having no contribution

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This discussion addresses the complexities of Tax Deducted at Source (TDS) when purchasing immovable property with multiple buyers, where only one buyer contributes financially. The primary concern is whether separate TDS filings (Form 26Q) are required for each buyer's PAN and how the TDS amount can be deposited. Advice suggests that while separate filings might be technically needed, depositing the full TDS from the contributing buyer's PAN is possible, though not always advisable. It's recommended to include a clause in the sale agreement clarifying the non-contributing buyer's role to avoid compliance issues and ensure the contributing buyer is recognised as having the full share.

arunkumar rajendran

arunkumar rajendran (Querist)
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01 October 2021 Dear Experts.
I am looking to buy a house and register it for 57 lacs, I am contributing 7lacs and Bank is funding 50 lacs.
I would like to add My mother as co-buyer , though she has no income and not contributing to the purchase.
All the Payments have been done from my account , except for 1 lacs Cash payment.

1. Do I need to fill 2 Form 26Q in this case for the 1% TDS for my PAN and mother's PAN
2. Can I deposit the TDS amount 100 % from my PAN number and seller PAN number alone.
3. Would this create any compliance issue for my Mother as she would mention her PAN number too in the Sale deed.
Kindly advise at the earliest..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 October 2021 1. Yes.
2. Not advisable.
3. Not at all.

arunkumar rajendran

arunkumar rajendran (Querist)
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01 October 2021 Sir, Thank You so much for the prompt advice. Just a follow up query..
Do I have to equally split the TDS in my name and my mother name ? Can I do it disproportionately otherwise. The Payments made so far is from my account( Cheque ) and Bank Loan , I have provided a token amount 1L only as cash.
I didn't want to deposit the TDS from her PAN because she has no contribution/income .
I didn't want to create a notion that she is funding the property.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 October 2021 Yes, can be done. To justify your claim, you will have to add a clause in the sale agreement, that the name of (mother) second owner is added only for safety purpose; otherwise First owner has 100% share in the property.

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arunkumar rajendran

arunkumar rajendran (Querist)
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02 October 2021 Sir, Thank You again for your prompt advice...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 October 2021 Most Welcome ....

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