Immovable property tax (tds)

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MANJUNATHA M.R (Querist)
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13 November 2013 Dear Sir my friends have Jointly purchased immovable property worth Rs.7140000/- and formed sale deed jointly and they have not deduct TDS from the Seller. My query is that whether the jointly or not the Sale consideration cross 50 Laksh and above TDS Attracts. In the above case what are the tax implications. Please clarify. Thanks in Advavce.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 November 2013 If there are multiple buyers and share of each buyer in the property is less than Rs. 50 Lacs but the value of the property exceeds Rs. 50 lacs then provisions of section 194-IA will be applicable. TDS will be deducted and deposited by each buyer in respect of their respective share in the property.

You should request the seller to refund the amount equivalent to the TDS amount on the total consideration ie Es 71400. Each buyer shall make payment for TDS separately. Interest shall be payable and be borne by the buyers for late deduction and deposit of TDS.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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14 November 2013 In case of joint owners, the threshold limit of Rs 50,00,000/- is to be determined property-wise and not transferee-wise.

The number of buyer or seller would not matter at all. The value of property should be more than Rs 50,00,000/- for applicability of deduction of tax. For example:- A,B and C jointly purchased an immovable property. The purchase price for each owner is Rs 20lakhs, Rs 15 lakhs and Rs 35 Lakhs respectively. In this case individual purchase price is less than Rs 50,00,000 but the aggregate value of the transaction is exceeds Rs 50,00,000.

Read more at: https://www.caclubindia.com/forum/tds-on-sale-of-immovable-property-sec-194ia-simplified-268528.asp

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