Sec 194IA
When a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50lakhs, he has to deduct TDS when he pays the seller.
Clarification:
Father: A
Son: B
A settled the 60% ownership to son B in 2015. They transferred the property in 2017 for 1Cr. Buyer make payment seperately 40L to A and 60L to B and also he deducted TDS of 1% on 1Cr (i.e., 1 lakh) seperately. A's contention is that TDS need to be deducted only if it exceeds Rs. 50lacs ownership is divided as 60:40 on property and i received only 40lacs, hence TDS need to be deducted only to B. (i.e 60k not 1lakh).
Kindly give clarification that whether the TDS is to be deducted on entire sale value of property or on each payment to the owners.
Thank you
Reply please
CAclubindia
