Sec 194IA

This query is : Open

jalpa mistry (Querist)
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04 January 2017 if I'm a joint owner in asset and consideration on my part is below 50lakhs whereas total consideration exceeds 50 lakhs. am I liable to deduct tax on purchase of such property? as per the words of section transferee is liable to deduct tax on consideration . so which consideration should I refer... 1) individual joint owner based or 2) deed based?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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04 January 2017 Yes you will have to deduct at the rate of 1% on consideration payable by you as the total consideration of the property exceeds Rs. 50 Lakhs and the section requires to deduct tax at source where the total consideration is more than Rs. 50 Lakhs even if share of one of the joint owners is less than 50 lakhs.

jalpa mistry

jalpa mistry (Querist)
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05 January 2017 Thank you sir, but my confusion is that section is saying about total consideration only but is not explaining about whose consideration to be follow. So if one assessee is paying less

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jalpa mistry

jalpa mistry (Querist)
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05 January 2017 then 50 lakhs then why should he agree to pay TDS on it? please clarify on the same to remove my confusion.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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07 January 2017 See my earlier reply has clarified that total consideration means total consideration of the property as a whole and not consideration paid by any one of the buyer. So even if consideration paid by one of the buyers is less than 50 laksh in case of joint ownership but the property consideration is more than 50 Lakhs then both buyers must deduct tax @ 1% on consideration payable by them separately. There is no confusion.

jalpa mistry

jalpa mistry (Querist)
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08 January 2017 thank you sir