Hello all, I want to enquire about the following situation,
Fact - person is going to purchase a plot layout with stamp duty value of 75 lacs (45000 Sq ft. Aprox). But different sale deeds are made for 25, 27, 23 lacs.
The layout is divisible and dose not represent single property.
Purchase deeds are made on different dates but on name of single person.
My question is whether TDS u/S 194IA is applicable?
In my opinion the threshold limit of 50 lacs is for each sale deed and not for per person per year. Therefore provisions of 194IA are not attracted
Threshold limit of Rs. 50 Lacs will be applicable to each & every property separately.
Since you have told that the property have layouts and does not represent a single property.
Hence TDS would not be deductible u/s 194IA
However, this method could be used as a colorable device to prevent TDS and is more prone to fall under scrutiny if such happens.
CAclubindia
