TDS of 1% on sale of joint prop with conditions
We own a property held in Joint name of wife (1) and Husband(2).
The entire consideration was paid by 1, and in Income Tax filing property is shown as paid by 1. Rent on the property is also recd only by 1.
Now when we intend to sell the property ( it is worth more than 50 Lacs), the buyer may insist that he pays the consideration jointly or 50% each to the two regd owners ( i.e. both 1 &2).
However, while computing Capital gains as also for TDS deduction under 194 @1%, the same should only be to the account of 1.
Now suppose the buyer insists on paying 50% each ( say for example the property is sold at 80 Lacs). then he pays 1 a sum of 40 Lac and deducts 40Th as TDS and does the same for 2.
It is logical that since 2 had not paid any initial consideration, he can not adjust the TDS deducted on his account with his other income.
I believe we should be able to transfer the amounts recd by 2 , to the account of 1 by bank transfer, as also seek refund of TDS deducted on account of 2.
Would this be fair or there could be a problem in this.
Pls advise.