Go as per IT certificate and deduct entire TDS in the name of husband.
TDS deduction for a property being bought from joint NRI owners
I am purchasing a property owned jointly by husband and wife, both NRI. Let's say the agreed sale amount is 10,000,000. I have got IT certificate issued under section 195(2), however it authorizes me to pay the amount of 10,000,000 after deducting income tax at the rate of X% to the husband only. Somehow, the order does not include wife's name. As I understand, I am supposed to do equally divided payments to both husband and wife. So, how should I will show the TDS deduction in the returns that I will have to file. Ideally, since payment is being made to both the owners, TDS should be deducted for both but IT certificate mentions the entire TDS deduction for husband. To make it interesting, the payment to husband and wife will go into their joint bank account. How should I proceed?
Asked 6 years ago in Income Tax
Hi,
Let the payment go in their joint bank account but you need to deduct TDS only against husband's PAN.
May be husband has only funded the entire property.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
These Certificates are issued by the assessing officer of the Pan Holder. I think His wife has not claimed the TDS certificate from her assessing officer.
You should ask them to get it for her otherwise you are liable to deduct the full tds amount in her case.
Hi,
Since you need to make payment to both the husband and wife, deduct tds at a lower rate (as per tds certificate) on the payment to husband and deduct at the normal rate from the payment to wife.
Hope that clarifies.
Regards,
Nikhil.
Hi Vivek, Abhishek, Thank you for reverting. > Go as per IT certificate and deduct entire TDS in the name of husband. > Let the payment go in their joint bank account but you need to deduct TDS only against husband's PAN. Okay. But, when I fill up form 27Q to file TDS returns, I will have to enter details of each payment made (to both husband and wife) and TDS deducted against each. How will I report it then? To Husband -- 5,000,000 -- TDS deducted X% of 10,000,000 To Wife -- 5,000,000 -- TDS 0 Or should I just mention following in form 27Q since the account to which payment is made is joint account To Husband -- 10,000,000 -- TDS deducted X% of 10,000,000 I suppose this should be okay as I will also state the corresponding section 195(2) certificate number in form 27Q. Thanks, Nitin
Asked 6 years ago
Go with second option.
Hi Nitin,
You may write
To Husband -- 10,000,000 -- TDS deducted X% of 10,000,000
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
You can go with second option i.e. payment to husband Rs 10 lacs ,deducted tds at lower rate X%.
You can go for the second option.
However, to be on safer side since the property is in joint name, you may consider deducting tax from both the sellers, as advised earlier.
Regards,
Nikhil.
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