Ambiguities of sec194ia...tds

CA Ashish Pathak (Employed at Cipla Ltd.) (2779 Points)

11 December 2013  
I along with my brother are purchasing property in Mumbai whose value is more than a crore. The property is under the joint ownership of Mr. X and his wife Mrs.X. Since the value of property we are purchasing exceeds 50lakhs so we need to deduct tax at source. I did quite in-depth analysis of the section. yet there are few questions which are haunting me. First question is that TDS is to be deducted at time of payment of each installments to the sellers. But we are taking a loan for the said property n so how the bank will issue the cheque in favour of the sellers? will the bank issue the cheque after after deducting TDS? And since I n my bro are jointly acquiring the property so who needs to deduct tds n file Tds return? Both of us need to deduct TDS or it will be sufficient compliance of the section if either of us deduct the tds n file return??? And since there are two joint sellers so TDS to be deducted for both the parties ( in proportion to their holding)? I request my friends n respected seniors of the CCI to clarify the above issues. And also do let me know if there are any circulars issued by CBDT clarifying above issues. Thanking you. best Regards Ashish