When two persons jointly purchase immovable property but only one provides the consideration, the consequences under income-tax law, property law, contract law and the Benami Act must be examined separately. Under Section 393(1), Table Serial No. 3(i) of the Income-tax Act, 2025, the obligation to deduct TDS depends on responsibility for payment, not merely the number of names appearing in the sale deed. Although payment by one purchaser may support deduction by that person, contractual obligations and reporting requirements remain relevant. Section 45 of the Transfer of Property Act, 1882 determines joint ownership interests by reference to contributions, common funds and contrary contractual arrangements, while Section 2(d) of the Indian Contract Act recognises consideration provided by another person. The Benami Act requires examination of beneficial ownership, the source of funds and applicable family-member exceptions. AIS and TIS disclosures must also be reconciled with the registered deed, bank transactions and actual funding arrangements. A joint purchase funded entirely by one person can be legally valid, but consistent documentation is essential to establish ownership, comply with TDS obligations and address potential benami concerns.
