Filing of Form 26QB while buying property on joint name
I am buying property (of more than 50 Lacs) on joint name with my wife. However my wife will not be contributing any funds. Please advise how to deal with question in form 26QB ie "Whether more than one Transferee/Buyer". If i mention yes, do i need to fill one more Form 26QB on my wife behalf. But she is not contributing any fund. Or I mention YES only and pay all due TDS(1%) my own and no need to file form 26 QB from my wife side. I think, in any case i can not mention NO as the property would be a joint property. Please confirm.
Asked 2 months ago in Income Tax from New Delhi, Delhi
This problem usually arises when the joint owner is actually not contributing funds. Because of this and other complications, it is advisable not to include non-contributing joint owners.
In the current case, Mention 'Yes' for more than one buyer and since you are paying the entire amount, you need to deduct and pay TDS on entire amount paid. 26QB need not be filed for your wife.
As your wife will not be contributing anything in the proposed house property and the entire cost will be borne by you, it would be sufficient if you pay the entire TDS @1% from your account only. Yes you need to mention name of both the purchaser. Government is concerned with the proper collection of taxes and you can fill only one Form 26QB.
At the outset, it is not recommended to add your wife as joint owner if she is not contributing to the property.it may may create complications in future. Is there any specific reason you want to include her? If so you can consider showing her share as 1%.
coming to your question, you should only deduct TDS and file form 26QB because as per income tax act, only you are the owner of the property.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
CA CS B.Com
Your wife is not required to deduct TDS as she is not "responsible for payment" to Seller, in your case amount consideration is to be paid by you so you are only responsible person to deduct TDS. Your wife will remain joint owner irrespective she doesn't make any payment
When you are contributing all the funds, you are the deemed owner of the property for the purposes of income tax, your wife may be legal owner, but you will remain resposnsible for all incomes and consequent taxes on it. This is the law.
Only one 26 q in your name will be required.
Yes ,in case of joint holding 26qb to be filled seperately .it is mandatory procedure.
Mention yes for more than one buyer. However there is no need for a separate form 26QB since the entire amount will be contributed by you
A position can be taken that for all practical purposes, you are the sole owner of the property although the said property is on paper under joint ownership. You can also substantiate the claim by demonstrating that the entire purchase cost of the said property is being funded solely by you (and your wife does not provide any funds). In such a case, the Form 26QB may be filed only stating your name as the buyer and selecting "no" against "Whether more than one Transferee/Buyer".