I understand that recently Income Tax Department has issued a Notification on 1% TDS on property purchase. Is it applicable only when the seller is a non-builder, or even when the seller is a builder? Also, what is the notification number please?
abanerji (81 Points)
15 June 2013I understand that recently Income Tax Department has issued a Notification on 1% TDS on property purchase. Is it applicable only when the seller is a non-builder, or even when the seller is a builder? Also, what is the notification number please?
CA Momin Owais Ahmed
(Audit Manager)
(154 Points)
Replied 15 June 2013
There is no Notification for this, The Finance Bill 2013 has introduced a new section 194-IA providing for TDS @ 1% to be deducted on Purchase of Immovable Property
abanerji
(81 Points)
Replied 15 June 2013
| Originally posted by : CA Momin Owais Ahmed | ||
 |
There is no Notification for this, The Finance Bill 2013 has introduced a new section 194-IA providing for TDS @ 1% to be deducted on Purchase of Immovable Property |
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Please see /news/income-tax-fifth-amendment-rules-2013-form-for-tds-194ia-on-immovable-property-26qb-and-16b-13060.asp?utm_source=newsletter&utm_content=news&utm_medium=email&utm_campaign=nl_23_2013 .
It refers to a Notification, which is regarding the TDS payment mechanism. Where can I find the section 194-IA?
abanerji
(81 Points)
Replied 19 June 2013
I request for a clarification. The new 1% TDS on property purchase rule is applicable from 1st June.
If I have a sale deed with the builder for a completed ready-to-possess flat, executed in May 2013, but payment is to be made in June, would TDS still be applicable at the time of payment? My presumption was that since the agreement is entered prior to the TDS applicable date, such payment is outside the ambit of TDS.
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