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

ITR 215 views 11 replies

Aniket A

Agent

34 Points Joined July 2025

I seek your guidance on the following situation related to TDS compliance under Section 194-IA:

I have purchased a residential property for ₹1,75,00,000 from a single seller in June 2024.
The sale deed includes three buyers: Myself, my father, and my mother—each shown as 33.33% joint owners.
However, I alone have funded the entire consideration (100%) from my own bank account.
Accordingly, I deducted and deposited 1% TDS (₹1,75,000) under my PAN through a single Form 26QB.
No separate Form 26QB was filed under my parents’ PANs, as they did not contribute any amount.

Now my concern is:

In AIS (Annual Information Statement) of all three co-owners (me and both parents), this transaction is now appearing – likely due to their names being in the sale deed.
My parents & I had sold an old residential property (joint owned) in FY 2024–25, and we are looking to claim capital gains exemption under Section 54 against the new property purchased.
Since the new property is registered jointly, but I funded it fully, I’m unclear:
- Can my parents still claim exemption u/s 54 for their share (33.33%) of the new property?
- Will the ITD question the exemption if they didn't contribute funds?
- Should I submit any declaration to clarify that despite funding, ownership remains as per sale deed?
Also, is there any TDS compliance risk (e.g., notice for non-filing of Form 26QB under my parents' PANs) given the AIS reflects all names?

Would appreciate expert views on whether my current position is correct and if any corrective or precautionary action is needed.

Thanks in advance!

Replies (11)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197460 Points Joined July 2016

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.

Aniket A

Agent

34 Points Joined July 2025

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.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197460 Points Joined July 2016

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)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197460 Points Joined July 2016

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.

Aniket A

Agent

34 Points Joined July 2025

Thank you Sir for clarifying all the queries.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197460 Points Joined July 2016

You are welcome.

Aniket A

Agent

34 Points Joined July 2025

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