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.

AI Summary

No Tax Deduction Needed Under Section 194IA for Joint Property Purchase Below Rs 50 Lakh Threshold. A client purchased a residential property valued at Rs 54 lakh in joint ownership with his wife, with the entire amount paid by him. The client inquires whether to file Form 26QB for the full amount or Form 26Q for each co-owner, considering the wife's lack of taxable income. The response suggests that since the property is registered in two names with each share valued at Rs 27 lakh, which is below the Rs 50 lakh threshold, there is no requirement to deduct tax under Section 194IA.