• Purchase of property on joint ownership without spouse contributing any amount.

I am purchasing a flat along with my wife and son as joint owners from a NRI. I and my son are contributing towards total cost, without my wife contributing anything. The seller NRI has applied for Certificate for lower deduction of TDS. The ITO is issuing separate Certificates for all the 3 joint owners, as the Agreement is in name of 3 owners. Is there any legal provision by which we can convince the ITO. Kindly elaborate.
Asked 4 years ago in Property Law
Religion: Hindu

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8 Answers

Hello,

this is the standard procedure which is being followed by the ITO.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. If you show the contribution of 2 of you only and not of your wife then ITO mUST BE CONVINCED.

2/ In any event there is not much harm if 3 TDS certificate is issued as later on while preparing your respective ITR the same can be taken care of.

3. in the meantime inform the ITO about the income status of your wife.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1. I assume you and your son are contributing equally

2. Ask the ITO if you and your son were contributing unequally, then would the TDS deduction be also equal?

3. Looking at it other way, even if your wife were to deduct TDS, that would not equate to the fact that she has too contributed for purchase. This would not make her liable for payment of any tax except for the liability of depositing the TDS collected in government treasury

4. You can state in sale agreement specifically the fact that only you and your son are contributing purchase money and your wife is added as a co purchaser only as a family arrangement

5. Tds has to be deducted by the person who is making the payment. In your case since your wife is making zero payment, the tds that she can deduct will also be zero.

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

1. First of all please note that TDS @23% shall have to be deducted from the consideration to be paid to the NRI while buying property from him.

2. What certificate the ITO is going to issue to all three of you separately?

3. There is no certificate ITO is supposed to issue against your buying the flat in joint names.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

1. You need not convince the ITO for anything at all.

2. You can pay the TDS on line in your name and the receipt will be generated automatically.

3. Moreover, what is the issue if TDS is deducted by your wife from the consideration she is paying by collecting from you and your son proportionately being the co-owner of the flat?

4. Just 7 days back my son and daughter in law has made full payment while purchasing a duplex at 'Sampoorna' , Rajarhat, when my son has made payment reducing the TDS and paid the TDS on line from the office of the builder only in his name. He has got the receipt of payment of the said TDS and his wife's name, who is not the contributor, is no where mentioned in the said receipt. Actually she also could have paid the TDS from her account and collected the receipt and the I.T department is bothered to know whether TDS has been deducted from the consideration and paid to them or not.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

Income tax certificate can be issued to each individual separately even the purchase is a joint purchase, there is no legal infirmity in it, because each individual has to file the ITR individually and not jointly.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

My query was quoting of which Legal provisions/Act/sections and submission of which documents would enable me to convince the ITO in issuing the TDS certificates in my and my son name. How can a ITO issue a Certificate in name of one co-owner who is not making any payment.

If you say that your wife cannot be entitled to to IT certificate then she should not have been made as a purchaser. .Whether she contributes for the purchase or not, she is one of the owners of the property bought on a consideration amount.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

Being separate owners and individual legal identities separate tds certificates will be issued.

Prashant Nayak
Advocate, Mumbai
27224 Answers
88 Consultations

4.4 on 5.0

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