Tds u/s 194ia

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2013 In case an immovable property is purchased in a bank auction sale, Tds provision of section 194ia will apply or not?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 November 2013 Yes, it is applicable

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2013 Dear sir what will be the liability of the bank regarding the tds toward the defaulter whose property is being sold in auction where access is paid to the defaulter after setting off the outstanding loan amount. What will form the consideration what will be the amount on which tds will be deducted by the bank.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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02 November 2013 pls go thru this...
https://www.caclubindia.com/forum/tds-on-sale-of-immovable-property-sec-194ia-simplified-268528.asp

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 Dear Mohit,

For sake of convenience, it would be advisable that the bank set-off the TDS receivable againsts its share of due and release the remaining excess to the borrower (this shall be applicable when bank has taken over the asset and has sold the assets in its own name and TDS has been deposited against its own PAN)

If the TDS is paid against the borrower PAN, then no worry at all.