- As all the 3 sellers are registered owners of the property therefore TDS should be deducted in their hands respectively. You need to file 6 Form 26QB.
TDS on property purchase
1) 3 Seller ( Husband, wife & Son) husband paid the money for purchase flat from his account the total amount of sales is going only to husband A/c also mention in register agreement of sale. 2) 2 Buyer ( husband and wife) payment from both the accounts 3) Buyer want to file TDS and as per law there will be six form which need to be field. 4) Seller insisting we should pay TDS only husband PAN No. ( Only 2 forms from buyer) We need advise that if we submit TDS only on principal seller PAN then it is accordingly to law and there won't be any penalties applied to buyer.
Asked 5 years ago in Income Tax
Yes I know this is as per rule, however the seller is insisting that we should pay only to the principal seller as he has paid the amount from his account at the time of purchase of flat and now the sale proceeds are also going to his account. This payment arrangement going to his account has been recorded in registered agreement of sale. Please can you suggest a way out where we are protected from penalties and seller request can be accommodated.
Asked 5 years ago
- Is the sale deed signed by the husband only or all of them?
As per section 194IA a resident needs to deduct TDS on payment made to a transferor. Thus if you are making payment to only one person you can deduct TDS on only his name, sincesthe samesis mentioned in sale deed but he can't claim such capital gain only on his name just because he had paid the purchase amount.
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Thank you
Hi
If entire payment is being made to husband's account, it would be alright to deduct complete TDS in husband's PAN and file only two Form 26QB.
Dear Sir,
Hope you are doing well !!
Ideally. form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. E.g. in case of one buyer and two sellers, two forms have to be filled in and for two buyers and two seller, four forms have to be filled in for respective property shares.
However, it can be accepted if you file only two 26QB as the entire payment is being made to only one account.
The income tax laws follows the concept of real owner and not the bookish one. The seller is the actual owner of the property and wife and son are just named in deed as a security. For tax purpose, the capital gains from sale of property would be taxed in the hands of the seller only. Hence, the TDS should be deducted in his name.
You won’t face any adverse consequences as far are taxes are rightly deducted. Also, maintain a written communication from seller about his request to deduct taxes only in his name.
Hello,
Since the whole payment is to be received the husband only, Buyers( husband and wife ) can deduct the TDS only in his name.
Two Forms would be filed in that case.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
No penalty would be raised on the buyer in such a case. Keep the proof of sellers request of payment and deduction in one name only.
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