Query - tds section 194ia

TDS 1120 views 1 replies

Query relating new section 194 – IA in Finance Act, 2013 TDS on Immovable Property is to be deducted @ 1% where consideration exceeds 50 Lacs.

Suppose there is a Builder X Ltd. sold three different flats to Mr. Y

Flat No.

1

2

3

Agreement Value

30 Lacs

40 Lacs

60 Lacs

Month of Agreement

September 2013

December 2013

March 2014

Payment made already

10 Lacs

20 Lacs

10 Lacs

Payment to be made

20 Lacs

20 Lacs

50 Lacs

Suppose during the financial year 2014-15, Mr. Y makes the payment of Rs.90 Lacs.

Is he required to deduct TDS on whole of 90 Lacs or is he required to deduct TDS on flat having consideration of 50 Lacs and above only i.e. in above example 60 Lacs flat?

Replies (1)

It depends on the sale agreement. If in the above case there are three separate agreements, then flat no. 3 shall be subject to TDS deduction provided the flat is not conjoined. 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register