Tds under 194 ia for joint buyers

TDS 758 views 6 replies
Hello Experts, I am in process of buying a property. I have added my wife as co-applicant in loan and intend to add her as Second Owner in Sale deed for social security reasons. All the payments would be done by me to the seller and also all loan payments would be done by me. The IT website mentions that TDS has to be deduced for each buyer/seller combination in their respective shares. Now i am confused on how I should deduct the TDS in the current circumstance where all the contributions will be done by me. Following few situations I can think of and looking for opinion of Experts here as to what right practice is 1. I deduct whole 1% TDS a) In this situation is IT likely to issue her a notice of TDS default? How to tackle this? b) If I take this route, should I mention in 26QB that there are more than 1 buyers? Any example on how to fill 26QB for this? 2. I make her do small contribution to seller from her savings e.g. 50,000-1 lakh and deduct TDS based on that so that compliance is fulfilled. Rest payments would be done by me and i would deduct the TDS on my contributions? I am very confused as to what is the correct approach. Would appreciate if you could provide your expert opinions on the same. -Thanks
Replies (6)

1. I deduct whole 1% TDS a) In this situation is IT likely to issue her a notice of TDS default? How to tackle this?

Ans. No. as her shar in the property is NIL

b) If I take this route, should I mention in 26QB that there are more than 1 buyers? Any example on how to fill 26QB for this?

Ans. Yes, with zero percentage share

2. I make her do small contribution to seller from her savings e.g. 50,000-1 lakh and deduct TDS based on that so that compliance is fulfilled. Rest payments would be done by me and i would deduct the TDS on my contributions?
Ans. Better Idea, but specify her share in the property.

Thank you sir. Appreciate your response on the same. I am not very familiar with 26QB - I tried searching on net but could not find sample on how to specify respective share in case of joint buyers. I would appreciate in case anybody is aware of such a sample or can guide me on the same. -Thanks

Each buyer as per his/her percentage share, makes payment to seller/s, so each buyer has to file form 26QB for each seller for the amount individually paid and pay TDS (after the deduction from agreed amount).

In the form there is no colunn about percentage of share/s in purchased property, but only declaration that s/he is a joint holder.

Try filing 26QB online.......... till confirmation or banking page; you will get accustomed to it easily.

Thank you sir. 

So if we take approach 1 - where I paid whole 1% TDS amount as entire contribution was mine and declare her in buyer list

1. Is she supposed to file 26QB in this case?

2. If so, does 26QB allow NIL return? 

-Thanks

If she has no payment to be made, no question of filing  NIL 26QB, as it is not accepted by the system.

Thank you very much sir for your replies. Really appreciate you in providing these answers and clarifying my doubts. -Thanks


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