TDS deducted on only one seller

Hi,

- You can show the capital gain in the wife ITR relevant to her share and transfer TDS from your ITR to her. She will claim the respective TDS in her ITR.

Thanks

Hi,

Ideally, the buyer was required to deduct in both husband's and wife's PAN.

If the TDS has been deducted in only husband's PAN and capital gain liability is own both(being joint owner), then husband needs to transfer proportionate TDS to wife.

Hi

For showing the capital gains, it is important to know who contributed the funds for purchase of the property. If you were the sole contributor, entire capital gains/losses can be shown in your ITR.

If your wife was also a contributor, capital gains / losses can be shown in both of your ITRs.

Even when buyer has deducted on your PAN only, it is fine on your part. Entire TDS shall be claimed by you only.

We have handled such cases before. We may help you with return filing.

Hi,

You can claimed entire TDS while filing ITR.

We may assist you in filing ITR.

- Capital gain is chargeable to tax in the hands of legal owner. You and your wife both are legal owners of the property.

- You need to transfer 50% of the sale, cost and TDS irrespective whether it is loss or gain. 

You need to claim 50% TDS and then when your wife files her return of income she need to manually claim 50% TDS and in the column mention that such 50% TDS was deducted under your name incorrectly.

If you need any assistance in filing ITR feel free to contact. File TDS column properly.

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

Thank you.

Hi

Though TDS to be deducted for both but in case its not done then you can claim full tds. As its loss case ,there wont be any issue.

If you only contributed for property the show full transaction in your ITR only.

Hope it helps

Hello!

Whatever sale consideration is received, you have divide it equally. Even the indexed cost must be halved. Then the long term capital loss will also be shared. Whatever TDS deducted in your name will be reflected in your 26AS. TDS has to deducted on sale consideration if the amount is more than 50lakhs per person. The penalty is attracted on the person who does not deduct. In your case you'll get a refund on whatever TDS is deducted.

It is necessary to understand whether both the husband and wife are really the co-owners.  If the entire cost of the house is met from the earnings by you, then she cannot be co-owner. From income-tax perspective you are the legal owner of the property.  Hence, tax can be deducted from the payments to you.  You will have to show the entire capital gains in your tax return. 

In case, your wife has actually contributed towards the purchase price of the house, then capital gains should be shown partly by you and partly by her.  Suppose, she is the part owner, the way out is you can show the entire TDS in your tax return and claim the refund.  You can take a declaration from her that she is transferring this credit to you and in turn you pay her the TDs amount due to her via bank transfer.

She should reflect part of capital gains and you can show partly.  Since there is no tax liability, it would not be a problem.  Else in the tax return form in TDS schedule there is a  column to report transfer of part credit. IN case of any confusion, do make a call.  This is a practical approach

Hello,

Actually, the buyers were required to deduct in both husband's and wife's PAN.

If they have deducted TDS only under your PAN, you can transfer the proportionate TDS amount to your wife PAN while filing your ITR.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

You both need to show 50%(as per your share) of sale consideration and cost of acquisition of the property, the resultant capital loss would also be divided as per your share. TDS would be transferred by you to your wife's PAN