13 July 2015
Agree with the opinion of learned expert.
Provisions of TDS on sale of Immovable Property (Sec 194IA):-
The provisions of this section states that TDS on sale of Immovable Property should be deducted at source from payment on transfer of immovable properties (other than agricultural land) where the consideration paid or payable is more than Rs 50,00,000/-. Earlier, there was no such deduction in case of immovable properties as it is in the case of salary, interest, rent etc. Any person responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), is liable to deduct tax at source under section 194-IA.Where the transaction is less than Rs 50,00,000 /-, the liability to deduct tax at source will not be applicable.
Rate at which TDS shall be deducted :-
1. Tax is deductible at the rate of 1% of the consideration payable to a resident transferor.
2. If a valid PAN is not provided by the seller, the tax rate would go up to 20%.
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