TDS u/s 194-IA - Joint Ownership in Sale Deed, Full Payment by Me - Capital Gains and AIS Confusion

Yes, you can claim the exemption under sec. 54 without much difficulty based on sale deed. For more clarification the TDS should have been deducted by all three.

Yes the issue is only I have deducted the TDS on full amount and now I cannot revise since the deadline has passed a year ago. 

That's OK. You all can claim exemption u/s. 54 based on sale deed; investment by each is not mandatory,

Thank you sir for clarifying, I understood that my parents can also claim the excemption.
But for TDS part, I have fully deducted and not divided with my parents, how should I deal with this in ITR ? if seller or my parents would be facing any tds issue ? (Although full amount is deducted under one PAN instead of all 3 PANs)

Yes, all of you can claim exemption based on purchaser/s as per Sale Deed. The other angle of TDS cannot be sorted at present. In case of any query it can be explained that there is no tax saving but administrative mistake.

Thank you Sir for clarifying all the queries.

You are welcome.                   

Hello Sir,

sorry to bother you again. The buyer part is clear for me. 

Now the seller has reached out for filing his return as he can see only my pan in 26AS. So should he show pan details of only me (full amount) in capital gain schedule (assuming if he does this there would be no tds credit mismatch atleast for the seller).
Or if he shows all three PANs in capital gain schedule, chances of tax credit mismatch will arise for him and he wont be able to claim full refund.

Requesting you to please guide me for the same for treatment of sellers income tax return

Here the foundation itself is on wrong footing.

Cannot advise him to declare PAN as per TDS return; but for his convenience let him proceed based on it.

Okay sir 
Thank you

Good Luck.               

The ₹1.75 lakh TDS payment may not, by itself, settle the Section 194-IA compliance for all parties. For a transaction with multiple buyers and/or sellers, the prescribed Form 26QB reporting is generally on a buyer–seller pair basis. Since the deed names three buyers and one seller, check the challan-cum-statements and the seller’s Form 26AS to confirm that the full consideration and TDS are correctly reported against the relevant parties. AIS displaying the deed does not establish that each buyer’s TDS obligation has been met. A correction or additional filing may be needed; verify the applicable procedure for this June 2024 transaction before acting.

For Section 54, the key issue is not simply whose bank account paid, but whether each claimant acquired and invested in a qualifying residential house. A parent named as a genuine co-owner may have an arguable claim for the share actually acquired, even if the child funded the consideration; however, the claim is not automatic, and the facts, source of funds, title and nature of the arrangement matter. There is no standard declaration that guarantees acceptance. Keep the sale and purchase deeds, payment trail, a clear record of the family arrangement, and each person’s capital-gains computation; obtain advice on the specific facts before filing.

A practical first step is to reconcile the sale deed, Form 26QB, seller’s tax credit and each co-owner’s return position. The main uncertainties are whether the TDS reporting covered the required buyer–seller combinations and whether the parents can substantiate acquisition of their respective shares for Section 54.

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