26 September 2016
I had purchased a residential Flat in resale in 2014-15. Sale Agreement for flat was of Rs 49,95,000 .Which means Rs 49,95,000 was paid to seller( excluding stamp duty n registration charges). Since amount paid to seller was less than 50 lakhs, my accountant said there is no need to cut TDS. Now a few months back i received a mail from income tax to file TDS for purchasing property above 50 lakhs. so am i liable for TDS.? Is property value decided considering stamp duty n registration charges also.? Please advise.
26 September 2016
Twhen a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50lakhs, he has to deduct TDS when he pays the seller. This has been laid out in Section 194-IA of the Income Tax Act. The buyer has to deduct TDS at 1% of the total sale consideration.The buyer has to deduct TDS at 1% of the total sale consideration.
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