Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

TDS on property

08 April 2021

If the agreement value is of less than 75 lakhs and if the property is owned jointly by husband and wife, then is section 194ia applicable? and if so whether TDS needs to be deducted for both sellers or just single seller?

Reply
Follow
Share

5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 08 April 2021

Yes 194IA is applicable as consideration value is greater than 50 lakhs rupees, so TDS should be deducted @ 1%
(0.75%).

TDS should be deducted for those who received the full consideration value.

Upgrade to CAclubindia Pro. Subscribe Now!

Harsh Katara (9 Points)
Replied 08 April 2021

But what if they have 50% share, isn't the capital gain would be taxes at both hands? then accordingly both are different entities per income tax, so if we split consideration then value will be less than 50 lakhs per individual. just want proper clarification

Ankit Neema (2742 Points)
Replied 08 April 2021

There is no requirement to deduct tds as individual share is less than 50 lakh

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 09 April 2021

If the income is split between husband and wife at the rate of 50% then TDS should not be deducted as consideration is less than 50 lakh rupees but otherwise if it is not allocated then TDS should be deducted as it is greater than 50 lakh rupees

CMA Poornima Madhava (CMA) (13112 Points)
Replied 09 April 2021

Originally posted by : Harsh Katara
	If the agreement value is of less than 75 lakhs and if the property is owned jointly by husband and wife, then is section 194ia applicable? and if so whether TDS needs to be deducted for both sellers or just single seller?

No TDS u/s 194IA because individual share does not exceed the limit of Rs.50 lacs, in this case.

This case law might give more info: https://www.taxcorner.co.in/2019/06/no-tds-on-immovable-property-us-194ia-if-individual-share-is-below-rs-50-lakh.H T M L