Tds on sae of property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2014 our client booked one flat for 1 crore, he yet not obtained possession of it, however he paid Rs.70 Lakhs for the same,and deducted TDS as well on the payment of 70Lakhs. now he wants to sell off the flat for Rs. 80Lakhs to one of his friend, so my question is whether his friend is liable to deduct TDS on the payment of 80 Lakhs to our client.

reply, asap

AVTAR SINGH

AVTAR SINGH (Expert)
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27 January 2014 Yes. The buyer will have to deduct TDS u/s 194IA.

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2014 please if there is any explanation on this

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CA Deven

CA Deven (Expert)
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27 January 2014 9. Immovable Property other than
Agricultural Land 194IA 1%

lIMIT - Rs. 50,00,000/-

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2014 From my view it is merely a transfer of right to purchase, by the transfer-er,as he himself not have the possession of flat, so we can't consider him as deemed owner of the flat.

CA Deven

CA Deven (Expert)
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27 January 2014 tds IS REQUIRED TO BE DEDUCTED SINCE THE PAYMENT IS ABOVE RS. 50 LAKES