TDS on purchase of property with two owners

Hi

How were the payments made to the builder?

If entire payment was made by your account to the builder, you can deduct the entire TDS and your wife is not required to do so.

Hi,

Please let us know from whose account payment was made to the builder. If the payment was made out of your money, then you can deduct entire TDS in your name.

However, department sometimes ask you to deduct the TDS in both the names but you can explain it to the department.

Ideally, it should have been deducted from both of your PANs.

But why would builder object in this. He has already received the entire TDS amount.

Anything may come up regarding this from the income tax department. Until you receive anything from the department, you need not do anything about this.

Hi,

Hope you are doing well !

Your builder is saying correct that if you have bought a house with co owner, then you need to deduct TDS in both of your names.

However, you have already paid entire TDS , there is no need to worry.

Now, you are not required to do anything. If any notice come from IT department then you may take necessary action.

Thanks & Regards,

Payal Chhajed

Dear Sir,

Two Separate payment shall be made by respective co-owner by quoting respective PAN in form 26QB. Each Co-Owner shall pay TDS on their Co-ownership ratio.

It is advisable to pay tax from respective co-owner bank account.

However,you have already done entire payment of TDS from your account. Now,you need not do anything about this.

Warm Regards,

Karishma Chhajer

Hi,

The process of claiming back the TDS is bit cumbersome. You will have to make the claim of excess TDS refund to the Assessing Officer (TDS) concerned.

Dear Sir,

Purpose of TDS deduction in case of immovable property is that sale of property should not escape tax. If the entire TDS was deducted in your name only then there is no issue. It is unimaginable why builder is worrying though he is a seller. Liability is on purchaser only. Builder just need to show it in ITR and claim TDS.

Thanks

Hi,

Ideally tds should have been deducted from both the accounts. However the builder need not worry about this as he has got the full payment. However if you get a query you will need to explain the same.

Regards,

Nikhil

Yes as per law all the buyer has to deduct TDS on their share of amount in your case you can approached to the seller ask to return 50 % tds & same again deposited thru you wife .