Section 194ia (tds on sale of immovable property)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2014 Dear Experts, I am mentioning my query as under:
I have a client who had entered into sale agreement on 15.05.2013 for purchase of flat summing amount 1 crore BUT he paid the amount on 15.08.2013(ie; after 01.06.2013). Is TDS deductible under Section 194IA?

I have read several articles on this but i could not get the base behind them. Would you please give complete explanation so that I could advise my client for the same?

Thanks in advance!

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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01 April 2014 Section 194IA not applicable.

Section 194IA is only attracted for the transactions on or after 1st June, 2013.

For example:-

• Sale agreement is made before 1st June, 2013 but consideration received after 1st June, 2013 – Sec 194IA is not applicable.

• Advance consideration of Rs 5000,000 or more is received before 1st June, 2013 but sale agreement made after 1st June, 2013. – Section 194IA is not applicable.

Regards,
Devanand