TDS Deduction incase of Jointly purchasing property woth mither

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Vicky Kumar

Job

124 Points Posted on 30 January 2025

Purchased a flat of 86 lacs rupees. I have given my mother name as joint owner in it. My mother is a housewife.

I have paid 20 lacs from my account to seller and for rest 66 lacs took a bank loan....in loan paper mother has signed as well as her name is there in property registry paper as joint owner.

I will pay all the EMIs as Mother is housewife.

So, who should deduct tds on 86 lacs Rs.....should I only deduct tds of 86k Rs. using my PAN as I have done all the payments....or should tds be deducted using my PAN as well as mother PAN I.e. 43k and 43k each.

Please suggest.

Replies (5)

Quick Summary

This discussion addresses TDS deduction when purchasing a property jointly with your mother, who is a homemaker. The main buyer, who funded the purchase and will pay EMIs, inquired whether TDS should be deducted solely under their PAN or split between both PANs. The consensus is that the primary buyer, responsible for the entire payment and loan, should deduct TDS using their own PAN. While splitting TDS might seem logical due to joint ownership, it's generally sufficient for the main payer to handle the deduction.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 30 January 2025

A great question about TDS deduction on a joint property purchase! TDS Deduction Responsibility The responsibility of TDS deduction lies with the buyer(s) of the property. Since you and your mother are joint owners, you'll need to determine whose PAN to use for TDS deduction. PAN for TDS Deduction In your case:

- You've paid ₹20 lakhs from your account and taken a bank loan for ₹66 lakhs. - Your mother is a housewife and hasn't contributed financially to the purchase. -

You'll be paying all the EMIs. Considering these factors, you can deduct TDS using your PAN only. TDS Calculation The TDS amount would be 1% of the total transaction value (₹86 lakhs), which is: ₹86,00,000 x 1% = ₹86,000 You'll need to deduct this amount and deposit it with the government using your PAN. No Need for Joint TDS Deduction Since you're the primary buyer and will be paying all the EMIs, there's no need to deduct TDS using both your PAN and your mother's PAN. However, it's always a good idea to consult with a tax expert or chartered accountant to ensure compliance with the latest tax regulations.

Vicky Kumar

Job

124 Points Posted on 30 January 2025

Hi Rama,

Is it fine fine if have deducted tds using my PAN and mother mother's PAN both....I.e. 43k and 43k? Although I have made entire payment....but since mother is a joint owner and she has signed on loan paper as well as co-applicant (although she is a housewife).

Please let me know.