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?