TDS ON PURCHASE OF IMMOVABLE PROPERTY U/S 194IA

[tejas kulkarni]

One of my clinet has purchased residential property worth Rs 54 lakh in joint ownership with his wife. Entire consideration Rs 54 lakh is paid by him only. His wife has no taxable income. Now while deducting tds u/s 194IA whether he should file form 26QB in single and pay tds @1% Rs 54000 or he should file form 26Q in multiple and pay tds of Rs 27000 each of co owner ?

Please guide.

[DR.MARIAPPAN GOVINDARAJAN]

In my view - the property is purchased in the name of two persons each @ Rs.27 lakhs which is less than Rs.50 lakhs. Then there is no requirement deducting tax.

AI Summary

TDS on property purchase: no withholding where each co-owner's share falls below prescribed threshold under section 194IA. Where a property is registered in two names and the consideration is apportioned so each co-owner's share is below the statutory threshold, there is no requirement to deduct tax at source under Section 194IA.