Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Section 194ia

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Zohar Rangwala

Zohar Rangwala (Querist)
Follow

19 August 2013 Whether Section 194IA would apply to property bought under construction.

Thank you in anticipation

Hemant Kumar

Hemant Kumar (Expert)
Follow

20 August 2013 TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration. TDS consideration is on the basis of Sale consideration of Rs. 50,00,000/- not status of under construction or completed. Hence, deduct the tds as per section.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now