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deduction and payment of tds u/s. 194 IA

LAKSHMI KANTH (TAX CONSULTANT) (449 Points)

30 May 2019

sir. we have deducted the TDS and paid vide challan no.26QB, now the queation is whether do we have to file the TDS returns for the same. kindly advice.

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7 Replies

Naimish Sanghvi (46 Points)
Replied 30 May 2019

new section 194 IA has been inserted under Income-tax Act, 1961 with effect from June 1, 2013. This section requires deduction of tax at source @ 1% on sale of Immovable property, in case the transaction value is exceeding Rs. 50 lakhs or more. In this you only file challan 26 QB. nothing else to do after this.

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LAKSHMI KANTH (TAX CONSULTANT) (449 Points)
Replied 30 May 2019

sir. rs. 50 lakhs means, this validation is for per annum or irrespective of financial year if the property sale aggreement is exceeds of rs. 50. 00 lakhs, or how, kindly advice.

Naimish Sanghvi (46 Points)
Replied 30 May 2019

one property sales value is more than RS 50.00 lakh u have to deduct TDS @ 1% as per income tax law

LAKSHMI KANTH (TAX CONSULTANT) (449 Points)
Replied 30 May 2019

sir. say for example of rs. 30 lakhs payment in one financial year and and rs.35.00 lakhs payment in subsequent financial year , for the total propery value of rs.65.00 lakhs.so, even in thie case also do we have to do tds. kindly advice.