• TDS on sale of property

I am planning to buy a Resale property
Seller -Husband is Owner & Wife is CO-Owner
 All the Booking & purchase amount transferring to Husband name only.Wife has given no objection certificate for transferring all the amount to husband.
 
Buyer-Husband is First Owner & Wife is Co-Owner( Housewife)
 Home loan on my name only & going to pay by me

So in the above scenario want to know 1% TDS on property need to pay to government.
How & what share will pay to each or only I can pay to Owner with one transaction itself.
Asked 1 year ago in Property Tax

Hi

 

Yes, you can deduct TDS under first owner's name only to whom you are making the entire payment.

Lakshita Bhandari
CA, Mumbai
4878 Answers
316 Consultations

5.0 on 5.0

Is the transaction value above ₹50 lakh, if yes you need to deduct TDS @1% in the name of the person to whom you are going to make payment and since in your case you are going to make payment in name of husband you can deduct 1% TDS in husband's name and you won't be at a fault.

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

Thank you

Naman Maloo
CA, Jaipur
3355 Answers
33 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

Yes, you can pay(Buyer) the 1% TDS to Govt & only Seller (first owner) can claim later. 

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

Yes, you can deduct the tds@1% in husband's name and pay it to government. 

 

Seller can claim it later while filing ITR.

Payal Chhajed
CA, Mumbai
4488 Answers
77 Consultations

5.0 on 5.0

Hi

 Yes, in thus scenario, one only buyer can deduct tds, and it can be claimed by one seller only. 

 

Hope it helps 

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

- Legally, you should deduct TDS in the hands of both the husband and wife as both are co-owners in the property. NOC given by wife can not over ride the law.

Vivek Kumar Arora
CA, Delhi
3667 Answers
220 Consultations

5.0 on 5.0

Hello,

 

Actually, you are required to deduct TDS in the name of both the sellers.

But there won't be any problem for you if you make the entire payment in the name of the one seller and deduct TDS of 100% in his name only.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2219 Answers
7 Consultations

5.0 on 5.0

In this case, wife is the co-owner for namesake.  The husband is the actual owner of property and the capital gains will be reported in his tax return.  You should make the entire payments to husband and deduct taxes under his name. The seller would claim the TDS by reporting the sale transaction in his return.

This is the usual practice in India whereby the property is jointly owner but the payments are made by single person. For income-tax, one needs to see who is the actual owener of property ie who actually paid the money to buy the property.

You should deduct tax in husband name only.

Jasmina Jain Shah
CA, Greater Mumbai
432 Answers
4 Consultations

5.0 on 5.0

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