Tds u/s 194(1a) by joint buyer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2015 I am buying house jointly with my wife. All payments will be made from my source.

I want to make tds deduction on property u/s 194(!A) from my account only. Is this correct.
OR do I have to make deduction in both our names. ?

Please note that my wife is not earning member.

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2015 Question 2. Also advice, property which I am buying has two joint owner, According to seller all payment for property is made by by him and he is 100% owner.

So he wants TDS to be dedcuted on his name only. Please advice is it ok to deduct TDS in his name only?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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28 July 2025 Here's the clarification on your queries related to **TDS under Section 194IA** (TDS on purchase of immovable property):

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### 1. **TDS Deduction by Joint Buyers (You and Your Wife)**

* If you and your wife are **joint buyers** of the property but **all payments are made from your account only**, you can deduct the entire TDS from your account only.
* There is **no requirement to split the TDS between you and your wife** just because you are joint buyers.
* The key point is: TDS should be deducted on the actual **payment made** by you.

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### 2. **TDS Deduction on Seller's Name When Property Has Joint Owners**

* If the property has **two joint owners**, but the **seller claims to be 100% owner and has received the full payment**, TDS can be deducted on the seller’s name only.
* However, for correctness, ensure:

* The **PAN of the seller** (or joint owners) is available for deducting TDS.
* The seller is **actually the owner of the full property** or has the legal authority to sell.
* If the property is jointly owned, and sale proceeds are received by both, then TDS must be deducted on each owner proportionately.
* Since the seller claims full ownership and has received full payment, deducting TDS on his name only is acceptable.

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### Summary

| Situation | Action on TDS Deduction |
| ------------------------------ | ------------------------------------------------------ |
| Joint buyers; payment from one | Deduct TDS on the buyer making the payment only |
| Property with joint owners | Deduct TDS on all owners proportionately if applicable |
| Seller claims 100% ownership | Deduct TDS on the single seller’s PAN only |

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### Additional Points:

* TDS under Section 194IA is **1% of the consideration** (excluding GST).
* Deductor must issue Form 16B to the deductee (seller).
* TDS must be deposited and filed within prescribed timelines.

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