Answer

1. F

   Facts

   The deductor reports TDS against the PAN given to it. For jointly owned property, each owner should give their PAN and share to the tenant. Otherwise, the credit sits with one PAN.

2. P

   Provisions and law

   • Sec 199, Income-tax Act 1961TDS deducted and paid to the government is treated as tax paid on your behalf and credited as per the Rules
   • Rule 37BA, Income-tax Rules 1962 (now Rule 203)TDS credit is given on the basis of the deductor's statement, in the year the income is assessable
   • Sec 26, Income-tax Act 1961Co-owners with definite shares are each taxed on their own share of the property income
3. A

   Analysis

   Rule 37BA allows credit to be given to another person where income is assessable in that person's hands, if the deductee makes a declaration to the deductor. Practically, ask the tenant to report each owner's share under their own PAN from now on. For past periods, the simplest course is often for the PAN holder with the credit to report the matching income, so get advice on how the returns line up. Under Sec 26, each co-owner is taxed on their share of rent.

4. C

   Conclusion

   1. 1Give the tenant both PANs and the ownership shares.
   2. 2Ask that future TDS be split by PAN.
   3. 3Align past years' income and credits with your CA.
   4. 4Keep the agreement showing co-ownership.

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