1 % TDS through Form 26QB- Joint agreement - IT Rebate post reg.

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    ARUNATGR New Member

    1) The agreement is a joint one.

    If the 1 % TDS through Form 26QB is paid on First buyer's PAN only, then after the Registration, can BOTH OF US jointly claim the Income Tax rebate or ONLY First Buyer will be allowed to claim ?
  2. ZED

    ZED Well-Known Member

    • No, you can not because the TDS is only on PAN of one person.
    • ATLEAST 2 Forms should have been used if the property was EITHER had (2) joint buyers or had (2) joint sellers.
    • 4 forms should have been used if there were 2 joint buyer AND 2 joint seller of that property.

    ARUNATGR New Member

    That means the total TDS payable should be divided by 2 and paid through two FORM 26QB (since 2 joint buyers are there) individually through our respective PAN Nos. as two different transactions (and 2 Challans willbe generated) ? For Eg. if the total TDS payable is Rs. 60,000 then should it be paid 30,000 each on our individual PAN IDs? - Thanks

    ARUNATGR New Member

    If yes, then are we able to claim IT rebate after Registration ?
  5. ZED

    ZED Well-Known Member

    Revise the form 26QB. Submit total of 2 forms (including the revised one).
    TDS credit will be given to the seller, you are deducting the tax of seller so seller should be the one getting the TDS.

    ARUNATGR New Member

    Sir, my question was a little different.

    This 1 % TDS is paid on behalf of the seller, agreed. But my question is

    1) I have only paid the pre-emi or advance amount for the flat we have booked. The possession and registration will be in 2017.

    My question was:

    AFTER POSSESSION AND REGISTRATION (in both our names), can we claim Income Tax rebate for the AMOUNT (EMIs) WE ARE GOING TO PAY FOR OUR FLAT after Registration in 2017 onwards?

    ARUNATGR New Member

    Please add - For this TDS, if the TDS of seller is paid through one PAN ID, then can BOTH of US claim the IT Rebate for the amount we will pay for our home loan after Registration?
  8. ZED

    ZED Well-Known Member

    You are a buyer, right?

    A buyer is to deduct tax of seller.
    If the purchase consideration is 70 Lacs then you will pay to the seller 69.3 Lacs and 70,000 you will deposit to the C.G. From your pocket only 70Lacs is outflow.

    Now, it is the seller who got less money and that 70K is his tax, why should you get his credit?

    ARUNATGR New Member

    Sir, Again there is a miscommunication. We do not intend to claim the seller's credit.

    My submission is:

    1) We (2 of us) are jointly purchasing this flat. As you said, suppose 70,000 is to be paid by us after deducting from the seller.

    2) NOW, if this 70 k is paid through ONLY ONE of OUR PAN ID, then AFTER Registration, can BOTH of US claim the IT Rebate EVERY YEAR (Principal by me and interest component by her) for the EMIs under 80C that we are going to pay for the Home Loan later. (even though this 1 % TDS is paid through only one PAN ID and one transaction).

    In other words, if the TDS is paid on only one PAN ID, then is it so that only one PAN ID is eligible to claim the Rebate (both Interest & Principal) after Registration and not the 2nd buyer (2nd PAN ID)? - Thanks
  10. ZED

    ZED Well-Known Member

    Thank you for clarification.
    As such there is nothing in law which will prohibit you from claiming the aforementioned deductions ,provided that the co-owner have also actually contributed the money towards the property.

    Each one of you shall be entitled to claim the deduction individually.

    BUT non deduction of TDS amount attracts penal provisions.
    You can not avoid it because in this case the information about the property will be submitted by the registrar of the properties to the Income Tax department. My advice to you is to revise the TDS form and file total of 2 forms.

    For interest amount claim it in the ratio of total interest payment.
    For principal amount, claim it in the ratio of total principal payment.

    [If loan was taken only by one person then only that person shall be eligible to claim deduction on account of principal and interest.]

    Let me know if you have any other doubt.
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