Ambiguities of sec194ia...tds
CA Ashish Pathak (Employed at Cipla Ltd.) (2779 Points)
11 December 2013CA Ashish Pathak (Employed at Cipla Ltd.) (2779 Points)
11 December 20131. Whether the bank will deduct TDS before issuing cheques to sellers, depends on thier policies. You should confirm with them. But I don't think they would do that. Usually loan is given for a part of the property value. So even if the bank issues the whole loan amount to the sellers, you could always adjust the TDS amount from the margin amount which you will pay the selller.
2.The joint buyers should deduct tax according to their shares in the property. The same is applicable to the sellers. The TDS will be deducted against their PANs according to their share.
Also no TAN is required for section 194IA, only 26QB (Challan cum statement) should be used for e pmt of TDS and 16B should be issued to deductee