TDS-jointly owned

Hi Kalyani — this is a very relevant and commonly misunderstood issue. Let’s clarify it step by step.

🧾 Legal Background:

Under Section 194-IA of the Income Tax Act:

• TDS @ 1% is to be deducted by the buyer if the consideration for transfer of an immovable property (other than agricultural land) exceeds ₹50 lakhs per transaction.

• The law says:

  "*TDS is applicable where the consideration for transfer of property is ₹50 lakh or more."

🧑‍🤝‍🧑 Joint Ownership – Buyers' Perspective:

• In your case, your parents are buying jointly, with each contributing ₹28 lakhs (50%).

• Individually, their share does not exceed ₹50 lakhs, so TDS should not apply individually.

✅ This interpretation is correct and supported by multiple expert opinions and CBDT responses.

BUT…

🧾 Registrar’s View: Based on Aggregate Value

The sub-registrar is looking at the total property value — ₹56 lakhs — and treating it as one transaction, not two separate ones.

📌 This is because:

• There’s only one sale deed (not two).

• Sellers are also jointly selling it.

• The property is being transferred as a whole, so TDS under Section 194-IA gets triggered.

✅ CBDT and Practical View (Based on Precedents):

As per a CBDT clarification (FAQ from TRACES) and several legal interpretations:

If the share of each buyer is definite and known, and their respective consideration is below ₹50 lakhs, then Section 194-IA is not triggered individually.

However, the Income Tax Department and Registrars generally insist on deduction if the total sale consideration in the document exceeds ₹50 lakh, regardless of the number of buyers.

✔️ Conclusion: What You Should Do

• 💡 Technically, your reasoning is valid.

• ❗ Practically, you will be forced to deduct TDS if:

  • The total sale value in the registered deed is ₹56 lakh, and

  • The registration is done via one single deed, not two.

💡 Suggested Options:

1. Deduct 1% TDS on total ₹56 lakhs (i.e., ₹56,000) and file two Form 26QBs — one in each buyer’s name for ₹28,000 each.

2. Alternatively, register the property as two separate transactions, each < ₹50L. But this requires the cooperation of sellers and registrar.

🧾 Filing Form 26QB:

• File two separate Form 26QB entries:

  • Buyer 1 → Seller 1 (₹28L): TDS ₹28,000

  • Buyer 2 → Seller 2 (₹28L): TDS ₹28,000

• Mention PANs of all parties carefully to ensure TDS credit.

✅ TL;DR:

• Yes, sub-registrar’s version is practically enforced, though it’s not strictly mandated by the language of Section 194-IA.

• To avoid complications, deduct and deposit TDS on full ₹56L (split 50:50) and file Form 26QB accordingly.

Would you like help drafting the Form 26QB filings or any clarification to present to the registrar?