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 grandfather's account, what all documents would be required?

Please help out here. Thank you so much.

AI Summary

Property co-ownership: TDS at 1% applies per owner on their share; familial payments can be tax exempt gifts with deed and bank proof.
For a jointly owned under construction property, each registered co owner is liable for tax reporting and TDS on their ownership share. TDS at 1% applies on payment or credit and separate Form 26QB filings are required per buyer seller pairing. Funds contributed by a grandfather may be treated as a tax exempt gift; retain a stamped gift deed and bank evidence to substantiate the source. Ownership share, not payment account, governs TDS allocation and independent tax computation by each co owner.