A flat has been allotted to Wife (First Applicant) & Husband ( Second Applicant) by State Govt Housing Board. The total price of the Flat is payable in 10 instalments over 2 years & the last installment is due on handing over of the flat. The flat is under construction & not handed over; hence the last installment is not due now. The Husband Second Applicant has paid all the 9 installments & will be making payment of final installment also. The Wife Second Applicant has not made any payment for the flat. The following may be clarified:-
1. Whether 1% TDS u/s 194IA can be deducted & paid by Husband ( 2 nd Applicant) only by filing a single form 26QB since he has only paid all the 9 installments due so far & will be paying the Final installment also.
2.Whether 1% TDS can deducted & paid at the time of paying final installment for total price of the flat 0r TDS is to be deducted for each Installment paid over 2 years by filing seperate Form 26 QB
3. If TDS is to be deducted for each installment paid in the past two years, what is the rate of interest & other charges applicable.
4. How the Rental income from the flat is to be reported in IT Return. Whether the entire 100% rental income can be included by Husband in his IT return as he has only made payment of 100% of Price of the flat. Or both Husband & wife
has to declare 50% of Rental income in their respective IT Return even though Wife (1 Applicant) has not made any payment towards the price of the flat.
Your wife being first applicant, it will always remain as co-owner of the property, so it will always be safe to consider you both as owners while treating such issues,
TDS to be deducted by both of you, if applicable to Govt. housing board.
Rental income to be declared by you both etc....
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