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Tds on property sale

22 May 2018

I have sold a residential property. This property is in joint name of my self and my wife. All payments to purchase property have been made by me as my wife does not have any income.

In above case pls advise if buyer can deposit 100% TDS in my name or it has to be deposited equally between me and my wife ?

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6 Replies

sreeja reddy (Articled assistant) (146 Points)
Replied 22 May 2018

As the property is in the name of both you and your wife, whatever sale proceeds should be equally shown under your nd your wife return.accordingly TDS by the party should be deposited equally between the both.

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rama krishnan (12244 Points)
Replied 23 May 2018

I differ with sreeja.. according to clubbing provisions, your wife share of CG will be clubbed with your income

A B Kundu (Professional) (1427 Points)
Replied 23 May 2018

Originally posted by : rama krishnan
	I differ with sreeja.. according to clubbing provisions, your wife share of CG will be clubbed with your income

I think the Clubbing provisions will not attract here as the Wife was a co-owner of the property, Husband didn't transfer the property into his wife's name through which wife is getting benefit from such property so to attract the clubbing provision. Both were the owner, & sale proceeds of the same shall be assessable in their respective hands according to their share in the property. Hence, TDS to be deducted in their respective PAN.

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rama krishnan (12244 Points)
Replied 23 May 2018

you may be correct mr. Kundu but as per the query raised, the property was purchased by the husband in the joint name and he made all payments. so... benefits derived from the property has to be assessed in the hands of husband only

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A B Kundu (Professional) (1427 Points)
Replied 23 May 2018

Originally posted by : rama krishnan
	you may be correct mr. Kundu but as per the query raised, the property was purchased by the husband in the joint name and he made all payments. so... benefits derived from the property has to be assessed in the hands of husband only

Yes Sir, you are right, the financial ownership should be seen. I missed out that point. Got these articles and now I am clear -

1) https://www.livemint.com/Money/aPGoc9sC01uRIX9c9h2anL/From-a-tax-perspective-you-are-a-coowner-of-a-house-only-i.H T M L

2) https://www.rediff.com/getahead/report/how-to-pay-tax-and-claim-deductions-for-joint-home-ownership/20170125.htm

Thank you