TDS on immovable property

181 views 4 replies

Prathamesh Jain

Studwnt

38 Points Joined August 2016

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

Replies (4)

CA Gyati Gupta

In Practice

9357 Points Joined December 2012

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.

Prathamesh Jain

Studwnt

38 Points Joined August 2016

But as far as general norms of reporting of registrar in his AIR return is transaction above Rs. 30 lacs. In this case all the deeds fall below the prescribed limits, is still there is any chance of scrutiny in general parlance. I know it is not predictable about scrutiny. But still I guess the probability can be certainly reduced to some extent

CA Gyati Gupta

In Practice

9357 Points Joined December 2012

Yeah you are correct no one can predict about the scrutiny.

But the sensitivity of the raised issue lies in purchaser and seller being the same in case of all sale deeds and I think there is not a long time gap between the dates of execution of these deeds, which is quiet enough to steal the attention of AO.

But nothing is predictable accurately.