Tds u/s 194 ia in case if joint owners

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venkat (Querist)
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15 June 2013 Dear All
Do we need to deduct tds u/s 194 IA in case two individual jointly buy a property worth 73 lakhs? as each individual share is 50% each.hence they pay 36.5 lakhs which is below Rs 50 lakhs.
Should they apply for TAN and submit returns individually?

CA Kapil Verma

CA Kapil Verma (Expert)
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15 June 2013 as the value of property exceed 50Lac you need to deducted TDS.

No need to apply TDS.

Do deposit the tax through form no. 26QB into bank.

venkat

venkat (Querist)
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15 June 2013 Sir
Can we apply the logic of joint owner in deciding the threshold of Rs 50 laks as we do in the case of rent u/s194 I.
Each owner is paying Rs 36.5 which is less than Rs 50 lakhs?
Regards

CA Kapil Verma

CA Kapil Verma (Expert)
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15 June 2013 as per sec 194IA, is talk about the value of property.

According to me TDS should be deducted.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 June 2013 In my opinion also, the Section is not owner specific.
.
Can each joint owner dispose off his share in the property separately ? Answer is-No.
.

In such a case the cost of immovable property becomes the criteria for TDS. For such a property, payment made to each co-owner is liable to tax.
.

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