Hi
How are the payments being made? If payment is made to husband only, you can deduct TDS for him only.
Tds under exemption section 195 of joint nri property
I & my wife are buying Joint NRI Property (Husband and wife). the deal is of (say) 400 Rs. The TDS exemption certificate which is system generated is as follows 1) of Rs 200 in his name for TDS @5.6% to be paid by my self and 2) of Rs 200 in his name for TDS @5.6% to be paid by my wife As her wife is the joint owner in the property how should I deduct TDS for her. The TDS certificate says that we should deduct against his name. Is it ok
Asked 6 years ago in Income Tax
Hi,
What does TDS certificate says? Entire TDS to be deducted in the name of husband or separate TDS to be deducted for husband and wife?
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.com
Thanks Lakshita They have a joint account so the payment is being made jointly in their name
Asked 6 years ago
In that case, ideally TDS should be deducted for both the parties.
What is the certificate? Is it a low deduction certificate? Can you please share the text of the certificate?
Please ask for a similar certificate for his wife either for low deduction or NIL deduction of TDS.
There is a conflict of the names in the registry documents and TDS certificate. If in the registry docs, names of both husband and wife is appearing then you need to deduct TDS on the basis of ownership in the registry docs. Please confirm with the seller that you are going to deduct TDS on the basis of TDS certificate i.e. husband.
Hi,
If the house is in joint name and payments are being made to them jointly, you should deduct TDS for both of them.
However, if they share a low Tds deduction or Nil deduction tds certificate (being NRI's) you can deduct TDS accordingly.
Hope this clarifies.
Regards,
Nikhil
Hi,
Assuming the property is jointly owned without any specific mention of the share of ownership, implying 50-50 joint ownership.
Since you said amount to be paid jointly in their name, again implying payment being made in 50-50 share.
Further, as you said the TDS exemption certificate is only in the name of Husband, no exemption shall be applicable for the payment (50%) to be made in the name of wife.
As such, TDS at applicable rates (20% or 30%) has to be deducted from the wife's share.
Regards,
In case of Joint ownership,TDS is to be deducted in both names as per there share of ownership.
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