TDS on property

No, if you and your wife are joint owners of the property, both of you are responsible for deducting and paying TDS based on your respective shares of ownership in the property. Each co-owner should file their own Form 26QB and pay TDS on their portion of the purchase consideration.

However, in certain cases, if one party (e.g., your wife) is financially contributing 100% of the payment, then she can file Form 26QB for the full TDS amount. But it's crucial to properly document and reflect this arrangement in the ownership and payment records to avoid future tax complications.

For compliance with Section 194-IA, it's typically required that both co-owners deduct and deposit TDS on their respective share in the consideration value.

If you need help filing Form 26QB, we can assist with the entire process!

For detailed, personalized advice, consider a phone consultancy.

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- What would the ratio of contribution by husband and wife in the purchase value of the property? Also what would be the source of funds in the hands of both?

- Confirm the residential status of the seller. If seller is NRI then tax compliances would be entirely different

For detailed discussion you may opt for phone consultation

Yes, your wife can pay the entire TDS for the property purchase, but there are important things to consider regarding compliance and reporting:

Key Points to Keep in Mind:

1. Joint Ownership and TDS Payment:

   • When a property is purchased jointly, the TDS on property purchase (under Section 194-IA) must be split between all co-owners in proportion to their ownership share in the property. Even if your wife is paying the entire TDS, the responsibility to deduct and deposit the TDS applies to both of you as joint buyers.
   • Ideally, each co-owner should deposit TDS in their own capacity, based on their respective share in the property, and file separate Form 26QB for each person's share.

2. Who Can Deposit TDS?

   • Your wife can pay the TDS for the entire consideration, but you both must ensure that:

     • 
       Two separate TDS challans (Form 26QB) are filed—one in her name and one in your name, reflecting each person’s share of ownership.
     • Both names should appear on the TDS forms, and the payment should be linked proportionally to your respective shares in the property purchase.

   For example, if the property ownership is 50:50, each person should ideally deposit 1% TDS on 50% of the purchase value. Even if one person makes the actual payment, it should be split correctly between both owners in the official paperwork.

3. Filing of Form 26QB:

   • You and your wife need to file separate Form 26QB (TDS on property transactions) for your respective portions of the property consideration. Each form will reflect 50% of the total value (or the proportion that corresponds to your ownership).
   • After filing Form 26QB, you will receive Form 16B (TDS certificate) to provide to the seller, confirming that the tax has been deducted and paid.

4. Implications of Incorrect TDS Filing:

   • If TDS is not deposited correctly and proportionally in the names of both buyers, it could lead to compliance issues in the future, especially when the property is sold or during assessments by the tax authorities.

Summary:

• While your wife can physically make the payment for the entire TDS, you both should file separate Form 26QB forms reflecting your respective shares in the property ownership.
• The payment should be recorded in both your names, even if only one person pays the total amount.

This ensures that there are no legal or tax complications later, as the TDS payment is linked to both co-owners.

It is not advisable as it could raise question from income tax department that your PAN is in purchase and you have not deducted TDS. It's better that both deduct TDS if both are purchasing property.

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The First Answer is YES! If you purchased joint property with your wife, your wife can pay full Amount of TDS.

YES YOU CAN