Want to promote home. It nonetheless not registered however have builder purchaser settlement.

I’m promoting off my home which remains to be not registered however I’ve the Builder Buyer Agreement. For ease of succession, I had included my spouse within the settlement however the entire property has been paid by me alone. Now the customer is paying me in two names- in my title and one other in my spouse’s title. I’ve requested them pay the total quantity on my title solely as have paid for the property. The purchaser says this may have authorized problems later if my spouse later says that she has not obtained her share.

I shall deposit each the cheques in our joint account. Would there be any problem from tax division later? is it OK to just accept half the cash in my spouse’s title and half in my title from the customer? I additionally need to perceive how do I declare the TDS which the customer will deduct because the settlement worth is 1.25 Crores?

If the customer is apprehensive about any problem arising in future, each of you may execute an indemnity bond in favour of the customer with a promise to indemnify the customer if the whole consideration is paid to you. Alternatively, you may have a particular clause within the sale settlement mentioning the truth that the property was absolutely funded by you and the spouse was made a joint proprietor for the aim of succession solely. Since your spouse can even signal the settlement, she can not declare in a while that she didn’t obtain her share within the sale consideration.

However even when the customer doesn’t comply with it, you may nonetheless go forward with the deal and deposit the total cost in your joint checking account. There wouldn’t be any downside from earnings tax division so long as you’ll be able to show that the property was absolutely funded by you and title of your spouse was included for the aim of succession. Since you’re together with full capital positive factors in your earnings, there isn’t a purpose for the earnings tax division to object to it. As far as credit score for tax is worried, there’s provision within the ITR kind the place you may declare the credit score for tax deducted within the title of your spouse and is reflecting in her kind no, 26AS.

Balwant Jain is a tax and funding professional and may be reached at jainbalwant@gmail.com

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