Do TDS provisions apply, if INDIVIDUAL SHARE of jointly held property is less than Rs.50Lakh. Also in ITR the share of consideration belonging to the joint owner, is alone taken for computation of capital gains.
Joint owners-Capital gains
Replies (1)
Hi Keerthija,
Regarding joint ownership and capital gains:
-
TDS Applicability:
TDS under Section 194-IA applies if the total sale consideration for the property exceeds Rs. 50 lakh, irrespective of the individual share. So, even if each joint owner’s share is less than Rs. 50 lakh, but the overall sale consideration is more than Rs. 50 lakh, TDS is applicable on the full sale consideration. -
ITR and Capital Gains Computation:
While filing ITR, each joint owner must report only their individual share of the consideration and capital gains. So, yes, the capital gains computation and tax liability is based on the individual’s share of consideration and cost of acquisition.
Summary:
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TDS threshold is based on total property value (joint owners combined), not individual share.
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Capital gains tax and reporting are on individual shares.
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