Tds of 1% on sale of property > 50 lacs

This query is : Open

pjrao (Querist)
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16 October 2013 Dear Sir,

W..e.f 1/06/2013, as per new section 194IA, 1 % TDS has to be deducted by purchaser while making payment to seller for property sale of over Rs 50 lacs. My query is that:
If a single plot sale value of Rs 60 lacs is divided into two sale deeds and property is registered twice say on 30 th Oct13 for Rs30 lacs for half plot and on 30 NOV 13 for Rs 30 LACS for the other half of the plot.
Please clarify whether 1 % TDS is to be deducted or not.

Thanks and regards,
pjrao

CA Rinkal

CA Rinkal (Expert)
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16 October 2013 dear

there is dispute regarding the same

but according to the provision u/s. 194I person has to deduct TDS @ 1% on total payment, if the same exceeds 50 lac,

but as per my understanding
1. one to one transaction must be consider in mind.

it means one seller pay 50 lac to one buyer then only this 194I section applies.

if the buyer purchase a property and there is two registered seller and the individual amount to be payable is being less than 50 lac then this provision should not apply.

but as per lower or nil litigation, yoou must deduct tax and deposit the same with govt.

mind well this is my personal view as there is no notification regarding this matter.

pjrao

pjrao (Querist)
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17 October 2013 In the referred query there is only one seller and only one purchaser but the dates for registry of plots are different.To make it more clear, only one big plot is divided into two parts and each part is registered on separate dates .
What will be the tax status in that case.

Regards,

p.j.rao

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