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TDS-Immovable Property

Lotus Agrawal (Practice) (1361 Points)

26 April 2023

Is TDS applicable u/s-194IA on purchase of immovable property from Housing Board.

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9 Replies

NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 26 April 2023

1% TDS Applicable if it is more than 50 lakh .

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NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 26 April 2023

1% TDS Applicable if it is more than 50 lakh .

Lotus Agrawal (Practice) (1361 Points)
Replied 26 April 2023

Yes it is more than 50 Lakhs but Housing Board authorities are saying no TDS is deducted by anybody and no amount shall be accepted if any deduction is made.

NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 26 April 2023

Please check whether the board authorities are exempt from tds ..........

Lotus Agrawal (Practice) (1361 Points)
Replied 26 April 2023

That is what I wanted to know.

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sabyasachi mukherjee (27574 Points)
Replied 28 April 2023

Please quote actual market value of the property.

CA Sanat Pyne (F.C.A. & M.COM) (20102 Points)
Replied 29 April 2023

Yes, TDS (Tax Deducted at Source) is applicable under Section 194IA of the Income Tax Act on the purchase of immovable property from Housing Board. Section 194IA requires the buyer of the property to deduct TDS at the rate of 1% of the sale consideration if the value of the property being purchased is more than Rs. 50 lakhs.

It is important to note that the TDS deducted under Section 194IA needs to be deposited with the government within a specific time frame and a TDS certificate needs to be issued to the seller of the property. Failure to comply with these requirements may result in penalties and interest being levied on the buyer.