TDS revision on sale of property

Even if the land was purchased by him alone but if her name is there as a seller and you are making payment to her you need to deduct TDS on her as well as she is the owner.

Also changing TDS return cum challan is a tedious job.

Ask him that your CA has told that if name of Mrs Shinde comes in sale deed TDS needs to be deducted.

If they are not going to file Mrs. Shinde return tell them to claim such TDS in Mr. shinde return as there is an option to claim TDS of your wife. 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

If he is claiming TDS then he need to claim respective income as well.

But it would be better if he shows it in wifes return as he can take benefit of slab.

Hi,

You can deduct the TDS to whom you are making payment. If you are making payment to Mrs. Shinde, you should deduct TDS of Mrs. Shinde.

If capital gain is taxable in the hands of Mr. Shinde, he can claim the TDS of Mrs. Shinde while filing his return. It's possible now.

Dear Sir,

Hope you are doing well !!

TDS works on the concept that every person making specified type of payments to any person shall deduct tax at the rates prescribed in the Income Tax Act at source and deposit the same into the government's account. 

So, the procedure followed by you, is absolutely correct.

However, Mrs Shinde can transfer the tds credit to Mr Shinde. Mr Shinde can show the entire TDS in his tax return and claim the refund.

In the tax return form in TDS schedule there is a column to report transfer of part credit.

If you need any assistance please let us know.

Yes, he will have to show the entire capital gains in his tax return. 

So, he needs to show wife's full share as his own income while filing ITR.

There are clubbing provision where though the asset is transferred to other, the income from such transferred asset is to be clubbed with the transferor.  This is what the CA rightfully intends to say.

In your case, it would be necessary to see who the actual owner of land is.  IN case Mr Shinde is the one who paid for buying the land, then he is the one in whose hand the entire capital gains will be taxed and Tds should be deducted in his name. 

If the return is revised, the entire transaction get clean for seller for tax purpose.  But since you have already done the compliance there are other practical ways to rectify.  Options are :

1. The tax return form has the option now to show that thou the taxes are deducted in Mrs name, it is actually claimed by Mr and also the income is offered to tax in the hands of Mr.
2. Mrs can transfer the sale receipts to the bank account of the MR since he is the actual owner of property. This will help them to justify the tax position of claiming the TDS credit.
3.  

Husband cannot just claim the TDS, he has to show the income in his return and claim the wifes TDS.

Please maintain documents for ownership with bank entries and sale documents.   IN case your need detailed discussion, we can have a call.

Hello,

Since the property sold was fully owned by Mr. Shinde, he is the one who is liable for tax on the full capital gain amount.

Since you have filed your TDS returns, and revising it would be a problematic task.

The better option would be that Mrs. Shinde can transfer the TDS amount through his return to Mr. Shinde. And Mr. Shinde who is liable for the full capital gain, can declare full capital gain and claim the TDS amount deducted under his PAN and the TDS amount transferred by Mrs. Shinde.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

If Mr. Shinde claim TDS transferred by Mrs. Shinde, he will have to declare full capital gain as his income.