Ambiguities of sec194ia...tds

I along with my brother are purchasing property in Mumbai whose value is more than a crore. The property is under the joint ownership of Mr. X and his wife Mrs.X. Since the value of property we are purchasing exceeds 50lakhs so we need to deduct tax at source. I did quite in-depth analysis of the section. yet there are few questions which are haunting me. First question is that TDS is to be deducted at time of payment of each installments to the sellers. But we are taking a loan for the said property n so how the bank will issue the cheque in favour of the sellers? will the bank issue the cheque after after deducting TDS? And since I n my bro are jointly acquiring the property so who needs to deduct tds n file Tds return? Both of us need to deduct TDS or it will be sufficient compliance of the section if either of us deduct the tds n file return??? And since there are two joint sellers so TDS to be deducted for both the parties ( in proportion to their holding)? I request my friends n respected seniors of the CCI to clarify the above issues. And also do let me know if there are any circulars issued by CBDT clarifying above issues. Thanking you. best Regards Ashish
Replies (1)

1. Whether the bank will deduct TDS before issuing cheques to sellers, depends on thier policies. You should confirm with them. But I don't think they would do that. Usually loan is given for a part of the  property value. So even if the bank issues the whole loan amount to the sellers, you could always adjust the TDS amount from the margin amount which you will pay the selller.

2.The joint buyers should deduct tax according to their shares in the property. The same is applicable to the sellers. The TDS will be deducted against their PANs according to their share.

Also no TAN is required for section 194IA, only 26QB (Challan cum statement) should be used for e pmt of TDS and 16B should be issued to deductee

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