Regarding deduction of tax
This query is : Resolved
06 June 2015
A Builder wishes to acquire a plot of Land for carrying on Construction activity.
The Land is situate at& is within 8 km. of PMC Limits & has a population of more than 10 Lakhs.
So, the Land, though actually used for Agriculture & its 7/12 extract confirms the same, cannot be regarded as ‘Agricultural Land’ within the meaning of Sec. 2 (14).
Naturally, he will have to deduct tax at source at 1% as per Section 194- IA.
Further, out of the total number of owners, some do not have PAN, but can provide Form 60 as per Rule 114 B of the Income Tax Rules.
So, in our view, the position can be summarised as follows:
1)He must deduct Tax at source from purchase price at 1%.
2)He need not deduct tax from those owners who can provide Form 60.
Kindly enlighten us.
Thanks & regards.
R.V.Marathe.
(Chartered Accountant)
The Land is situate at& is within 8 km. of PMC Limits & has a population of more than 10 Lakhs.
So, the Land, though actually used for Agriculture & its 7/12 extract confirms the same, cannot be regarded as ‘Agricultural Land’ within the meaning of Sec. 2 (14).
Naturally, he will have to deduct tax at source at 1% as per Section 194- IA.
Further, out of the total number of owners, some do not have PAN, but can provide Form 60 as per Rule 114 B of the Income Tax Rules.
So, in our view, the position can be summarised as follows:
1)He must deduct Tax at source from purchase price at 1%.
2)He need not deduct tax from those owners who can provide Form 60.
Kindly enlighten us.
Thanks & regards.
R.V.Marathe.
(Chartered Accountant)
06 June 2015
1% tax as per section 194-IA has to be deducted from all the persons. Provision of Form 60 is not acceptable in this case.
08 June 2015
Further to my Query u/s 194 IA for 1% Deduction regarding immovable property transaction,
Clause (a) of Rule 114 B specifies the requirement of having a PAN for 1% Deduction. However, the last proviso mentions that if a person does not have PAN, he can furnish Form 60.
Is this view correct & applicable for immovable property transaction?
Please let me have your views
Thanks & regards
R V Marathe
(Chartered Accountant)
Clause (a) of Rule 114 B specifies the requirement of having a PAN for 1% Deduction. However, the last proviso mentions that if a person does not have PAN, he can furnish Form 60.
Is this view correct & applicable for immovable property transaction?
Please let me have your views
Thanks & regards
R V Marathe
(Chartered Accountant)
08 June 2015
This view is not correct PAN is required for property transaction exceeding 50 lakhs.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Building and other construction workers welfare cess act 1996
- Bank Accounts in Balance Sheet for ITR 3
- ITR validation error - Balance sheet is not filled
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Eway bill for machinery reparing
- Applicable TDS for Purchase of Flat from NRI
- Form 10BD Filling
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Taxation in the hands of Landowner under JDA
- Change the gender in the registration of icai
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
