Consideration in section 194ia

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Gaurav jindaL (Querist)

13 May 2016 AS PER SECTION 194IA LIMIT TO COVER UNDER TDS NET IS 50,00,000 NOW IF CONSIDERATION AS PER SECTION 50C IS MORE THAN 50 LAKH BUT ACTUALLY IT'S LESSER THAN 50 LAKH SHOULD TDS BE DEDUCTED AND ON WHICH VALUE

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

14 May 2016 Section 50C is only a deeming fiction which only applies in case of calculation of capital gains. It has no application over section 194IA by any strech of imagination whatsoever. Moreover section 194IA refers to actual sale consideration and not a deemed one. Therefore if actual cost is less than Rs. 50,00,000/- there is no need to deduct TDS u/s 194IA as the consideration paid is less than Rs. 50 lac. Only impact is for seller who will incur LTCG as per 50C value. But as a buyer make sure that consideration paid by you is not less than the section 50C value by more than Rs. 50,000/- otherwise if the difference is more than Rs. 50,000/- it will add up in buyer's income entirely.

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)

14 May 2016 Section 50C and 194IA is totally two different thing and it is not related to each other. 50C is related to capital gain taxation and 194IA is regarding TDS deduction. Hopefully our following articles will helpful for you :
https://www.caclubindia.com/articles/understanding-tds-on-purchase-of-immovable-property--26698.asp

https://taxguru.in/income-tax/notices-related-tds-immovable-property-purchase.html

Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615

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