27 June 2020
My client has purchased an immovable property of Rs.7700000 in joint ownership. There are 2 buyers (50% ownership each) and 1 seller. Do I need to deduct TDS@1% since the value is more than Rs.5000000. Or the limit of Rs.5000000 will be seen in case of each buyer individually and hence there will be no TDS.
27 June 2020
Income tax Act is not clear on the issue raised. However, Income tax Appellate Tribunal, Delhi in the case of Mr. Vinod Soni Vs.ITO (decision fated 10-12-2018), said Rs. 50 lakhs limit is applicable with respect to the amount related to each transferee. But the registration department will accept the decision or not has to be seen.
07 July 2020
Each transfree being the saperate income tax entity, law has to be applied with respect to each transfree. No requirement of deducting TDS in this case.
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