1% TDS on sale of property , two sellers, one buyer

TDS 456 views 9 replies

Anand

self employed

29 Points Joined January 2024

Hello All,

I am trying to purchase a property above 50 lakhs and the property was owned by Husband and Wife. The seller asked us to deposit money only to his Wife's account, and said to pay 1% TDS only on his Wife's PAN. When we asked him as there are two sellers we need to split the TDS and pay on both of their PAN's, he insisted that he can choose in whatever account he wants the TDS to be paid because he is not receiving any money into his account , so only his wife account is only applicable for TDS. Please Experts guide me what to do in this situation. Thank you.

Replies (9)

Sharath chandra

Accountant

1227 Points Joined September 2015

Can't do that. you have to do to both of them equally. or as per their ratio of ownership.

Anand

self employed

29 Points Joined January 2024

Thank you Sharath.

Originally posted by : Sharath chandra

Can't do that. you have to do to both of them equally. or as per their ratio of ownership.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Please incorporate this fact in the agreement in that case. So that you are safe.

Rgds
CA. Raj Doshi
R C D & Co.
Chartered Accountants
Kandivali West,Mumbai

Anand

self employed

29 Points Joined January 2024

Thank you Raj.

Originally posted by : CA Raj Doshi

Please incorporate this fact in the agreement in that case. So that you are safe. RgdsCA. Raj DoshiR C D & Co.Chartered AccountantsKandivali West,Mumbai

RAJA P M

"Do the Right Thing...!!!"

128111 Points Joined January 2015

Yes, I agreed to above replies.

Don't do that as per seller's insist.
Pay as per property ownership ratio as per documents...

Yasaswi Gomes new

Finance

4545 Points Joined September 2020

Sale of immovable property under Section 194-IA- It is proposed to amend the amount on which TDS should be deducted. The person buying the property should deduct tax at 1% on the sum paid/credited or the stamp duty value of such property, whichever is higher.

Since your deducting on property, it should create any problems

Dr, property

Cr. seller name

only thing it states is tds at the time of credit or payment which is earlier

Anand

self employed

29 Points Joined January 2024

Thank you Raja

Originally posted by : RAJA P M

Yes, I agreed to above replies.Don't do that as per seller's insist.Pay as per property ownership ratio as per documents...

sabyasachi mukherjee

27910 Points Joined May 2017

Sale of immovable property -50 lacs
tds is applicable.

Anand

self employed

29 Points Joined January 2024

Originally posted by : Sharath chandra
	Can't do that. you have to do to both of them equally. or as per their ratio of ownership.

I have conveyed to the seller the same and he talked to his CA. His response was as follows.

The entire amount was paid off by his wife (through her loan and earnings) only. So 1% TDS can be paid only on her wife's name. Can you please advise? Thanks.