Property Purchase Query for Joint Owners

[Shrey Shah]

Hi,

So I purchased an under construction flat on mine and my father’s name as the co-owner.
 

My Grandfather paid the first instalment to the builder from his bank account on our behalf and we paid 1% TDS (50-50) on the 1st instalment from mine and my father’s income tax portal as we are the owners on the Registered Agreement of Sale.

 

As for the instalments going forward, I’ll be paying it completely from my bank account.

 

Questions:

1) My father has no income so he received an email from ITD stating ‘Mismatch between the income reported and property purchase transaction’ and they asked for providing AIS feedback. So, is it safe to simply select ‘Information is correct’?

Other available options are ‘Information belongs to other PAN’, ‘Source is a gift receipt which is non taxable’, ‘Information is not correct’..

 

2) Is it fine to deduct TDS from his and mine PAN for each instalment regardless of who is paying for the flat?

 

3) If ever questioned or asked about the source of fund for 1st instalment paid from my grandfathers account, what all documents would be required?

 

Please help out here. Thank you so much.

AI Summary

Co-owned under-construction flat purchase: AIS mismatch after 1% TDS split, third-party funded instalment; proof and future TDS filing A joint purchase of an under-construction flat has been reflected in the registered sale agreement with two co-owners, with tax deducted at source at 1% on the first instalment split equally between the co-owners' tax accounts, although the instalment was funded from a third party's bank account. The issues raised concern how to respond to an Income-tax portal communication flagging a mismatch between a co-owner's reported income and the reported property purchase transaction through AIS feedback, whether TDS on subsequent instalments may continue to be deposited under both co-owners' tax identifiers irrespective of which co-owner actually funds each instalment, and what documentary evidence may be needed to substantiate the source of funds for the initial instalment paid by a relative if queried.