Purchase of property above 50 lakhs jointly

- In your case, liability to deduct TDS is on you. TDS will be deducted at each time of payment to the seller. If the property will be entirely purchased from your sources then only you will be liable to deduct TDS otherwise both you and your wife will deduct TDS in the ratio of your contribution. Rate is 1%.

- After deduction of TDS, you will be required to deposit it to the treasury of the government through challan cum statement i.e. FORM 26QB. 26QB should be filed within 30 days from the end of the month in which TDS will be deducted otherwise late fees and interest on TDS will be levied.

- Please check the residential status of the seller. If he is NRI then you will be liable to deduct TDS on the sale consideration @20% plus cess. Assuming there is no surcharge.

- You will be liable to pay sale consideration less TDS (I.e. 99 lacs) to the seller and seller will claim credit or refund of the same. If sellerbis defacto co-owner of the property then two Form 26 QB will be filed. Number of Form 26QB depends on the defacto buyers and sellers.

For detailed discussion, please take phone consultation.

Hi

Since you are providing the entire purchase consideration for the property, you are liable to deduct TDS. 

You will pay 99 lacs to the seller and 1 lac to the government. The seller will get TDS credit of 1 lac while filing ITR.

Form 26QB (for each payment) needs to be filed for payment of TDS. Form 26QB is a challan cum return.

We may assist you with the compliance.

Dear Sir,

Hope you are doing well !!

When you are contributing all the funds, you are the deemed owner of the property for the purposes of income tax, your wife may be legal owner, but you will remain responsible for all incomes and consequent taxes on it. This is the law.

So, you need to pay 99 lakh to seller and deduct 1 lakh as tds.

Also, since you are paying the entire amount, you need to deduct and pay TDS on entire amount paid. 26QB need not be filed for your wife. Only one 26QB in your name will be required

We may assist you in entire compliances and filings.

It is advisable to take a phone consultation for detailed discussion.

Since token amount will be paid in this FY, TDS would be .75%.

Hi

You need to pay TDS Because you are paying entire contribution. You need to pay 99 lacs i.e. after reducing tds amount.

Hi

It will be .75%.

TDS will be .75% for the same.

please take phone consultation