TDS compliance on Property purchase with Joint ownership

Only you are liable to deduct and deposit TDS 

No

Hi,

Technically if its a jointly owned property then the TDS should be deducted and deposited as per the ownership percentage of the co owners i.e. under your and wife's PAN.

However since the entire financial contribution is being made by you, you may deposit the TDS under your PAN, but then please be prepared with replies as it might lead to queries being raised by the Income Tax Department for your wife's purchase of immovable property and no TDS compliances on her PAN and issues might arise also at the time of sale of such property.

Further there can also arise complexities on purchasing a property without corresponding income in the ITRs. in your wife's case(although you are financing the same through loan etc.) so I would suggest you to take up an expert advice on that too.

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

Thank you.

Hello,

In this specific situation, it is legally appropriate for only you, as the primary contributor to the property purchase and the sole borrower of the home loan, to be responsible for deducting and depositing the TDS. Your wife, who is a co-owner in the sale agreement but not financially involved, does not have an obligation to file TDS in this context.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Hey,

1. Ownership vs. Financial Responsibility: Your wife being a co-owner of the property means that she will have legal ownership rights to the property, but it does not necessarily mean she has a financial interest in the property. Since you are the one solely funding the purchase and the home loan is only in your name, you are responsible for the financial aspects of the transaction.

2. TDS on Seller's Payment: TDS (Tax Deducted at Source) is typically deducted by the buyer on payments made to the seller. Since you are making all the payments related to the property purchase, including installment payments to the builder, you are the one responsible for deducting and depositing TDS.

3. PAN of Buyer: The TDS should be deducted using your PAN (Permanent Account Number), as you are the one making the payments. The builder should record your PAN for TDS purposes.

4. Legal Ownership: Your wife's co-ownership of the property does not automatically make her responsible for TDS. It's a common practice for one spouse to be the primary financial contributor in such cases.

However, it's essential to communicate this clearly with the builder and ensure that they understand the financial arrangement. Provide them with all the necessary documentation, including your PAN and any other documents they may require for TDS compliance. If the builder continues to insist on your wife's PAN, you should seek clarification from the builder.

And this do not concern the builder .

If you find this answer useful , please give your valuable feedback . And for further discussion you can opt for phone consultation.

Thank you 

CA Vaibhav Garg

Ideally it should be PAN wise so in case of joint ownership better to file TDS individually