11 December 2018
Total Sale Consideration is Rupees 1,52,00,000. The property is Sold under single agreement. There are 3 members, an elder sister & two younger brothers. The sister making payment of Rs. 80,00,000 whereas the brothers agreed to pay the sum of amount of Rs. 36,00,000 each. The query is whether the liability of TDS is to be paid only by the Sister or all?
11 December 2018
The liability to deduct TDS will be of all the Buyers w.r.t their share of payment.
Quoting Section 194IA here : "194-IA. (1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon."
Reading it, the liability to deduct TDS is on 'any person responsible for paying to a resident transferor'. Hence the share of liability to pay will be defined in the agreement and hence all the buyers of a joint property must deduct TDS in proportion of their shares.
CAclubindia
