A partnership firm owns certain piece of land which it sold to two individuals for Rs. 1.60 Crores each one liable to pay Rs. 80 Lakhs. The Sale deed was made in December 2012 and all registration formalities were done in December 2012 only.But no consideration was paid by the individuals.Both the individuals are planning to make payment for the above land in October 2013.
Will the individuals be liable to deduct TDS @ 1% as per new Section 194IA, on any payment made to the Partnership Firm in October 2013, although Sale Deed is of before 1st June 2013(the date of applicability of Section 194IA)?
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