Hi
If you are making entire payments for the purchase of the property, you will deduct TDS at applicable rate according to the Low deduction certificate. You need not take a TAN for your wife.
TDS deduction for joint owner on purchase of property from NRI
I am planning to buy a NRI property. They will be providing lower deduction certificate for tds. I will be including my wife as co-owner and she is a house wife. The amount of purchase will be paid solely by me. I want to know whether she also need to do tds deduction and need a TAN for the same or only I can apply for the TAN. Also want to know if AO code of TAN and PAN need to be same or TAN AO code can be of present city while PAN AO remains of old city
Asked 5 years ago in Income Tax
- As the entire payment will be made by you therefore only you should apply for TAN.
- Both the AO codes depends on the address mentioned in PAN and TAN database which is mentioned at the time of application of PAN and TAN. Both AO will be different, PAN AO is for Income tax matters and TAN AO is for TDS matters. Yes PAN AO could of old city and TAN AO may be of present city.
Hi,
-If you are making entire payment , you can deduct the entire TDS and your wife is not required to do so.
-So, she doesn't need to do tds deduction.
-Also, you need not to take a TAN for your wife.
-TAN AO code can be of present city while PAN AO remains of old city.
Hello,
Since you are making the whole payment for the property, you only would be required to make the TDS deduction on the whole payment. No need to get TAN registration for your wife.
AO code for PAN & TAN depends upon the address mentioned at the time of registration. AO code for TAN can be different from the AO code for PAN as per the present address.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Thanks for replying. Really helpful. Understood that AO of TAN and PAN need not be same. Hope it would not matter while filing tds return.One further query on AO of TAN. I am presently staying in Mumbai and buying property in Thane. So should the AO be of Mumbai or Thane?
Asked 5 years ago
AO of Mumbai.
Your present address, AO of Mumbai.
Technically the provision of income tax says TDS must be deducted by the person who are responsible for paying to NRI.
In your case it would be you and your wife but you may take the stand that entire payment is being made by you and your wife is just co owner and so you will deduct entire TDS and need TAN number.
AO for PAN and TAN will be different and you can apply for TAN in current city as it requirement of TAN says you must apply for TAN in the city from where you intend to file the return.
In your case it would be Mumbai as you are living in Mumbai.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
It should be AO of Mumbai.
So if requirement of TAN is to apply in the city from where I intend to file the return then shouldn't the AO be of Thane as I am planning to move to Thane from Mumbai once the whole process is completed. Sorry I forgot to mention in earlier query that I plan to move to Thane once the deal is finalised.
Asked 5 years ago
Both the options are available.
1) Address can be amended.
Or
2) obtain at Thane address.
Hi
As per the law, TAN is to be applied to the AO from where you will be filing the TDS return.
Practically, in my opinion, registration of TAN in Mumbai will also be alright. (I assume, you might not be having an address in Thane)
Use current address of Mumbai now. you can amend it later when you shift to Thane.
It is ok.
You can go ahead with registration of TAN in Mumbai .
Hello Sir,
As the entire payment for property will be made by you, you only would be required to make the TDS deduction on the entire payment. No need to get TAN registration for your wife.
TAN AO code can be of present city while PAN AO remains of old city. There is no problem in it.
It should be AO of Mumbai.
But what would be your address proof of Thane for now as you need address proof to apply for TAN.
In addition to my above queries, I will be applying for home loan with my wife as co applicant as she is also a co-owner. She is a house wife but adding her gives benefit of interest rate. I will be paying back emi from my account. Home loan department said that they will be issuing tax certificate only in my name. My questions are: 1. In this scenario also does she not need a TAN as seller is NRI? 2. Home loan insurance should be only in my name or in my wife's name also. In case something happens to me and insurance is in my name only then will it be her liability to repay the emi as she is co applicant or will it be settled by insurance agency? 3. Will I be able to use 100% of tax benefit if tax interest certificate is issued in my name. Does it not depend on ownership of the house.
Asked 5 years ago
TAN and housing loan are different.
Since she is a owner she need to deduct TDS but if you prove that payment is only done by you then you might deduct TDS just in your name.
The deduction of housing loan interest is available to owner based on how much payment they make.
So if you are going to make entire payment you can claim entire deduction even though there are 2 owners of house.
1. No
2. Insurance agent will update you better than us.
3. Yes
1. In my opinion, no need to take TAN for your wife.
2. Please consult your insurance advisor.
3. Since you will be making entire payments, you would be deemed owner of the house property. Hence you can claim 100% eligible deductions.
1. No.
2. Please consult with your insurance advisor.
3.Yes.
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