Tds on consideration paid to nri for property purchased

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2015 The assessee has made payment to NRI for purchase of agricultural land. The seller has further invested sale consideration in purchase of agricultural land and is eligible for exemption u/s 54B of Income Tax Act, 1961.
However, assessee has not deducted TDS at the time of payment to NRI.
As the the Seller has made further investment, his tax liability is NIl.

Please suggest whether assessee is mandatory required to deduct TDS.
As the Tax liability of seller is Nil, whether benefit of section 201 (assessee in default) can be taken by assessee.

CA ANILKUMAR B.COM FCA DISA

CA ANILKUMAR B.COM FCA DISA (Querist)
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27 March 2015 Section 194 IA applicable only when payment made to a resident transferor for immovable property other than agricultural land subject to the threshold limit.

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2015 We are talking about Section 195 of Income Tax Act, 1961 and not 194IA.

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