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Section 194ia of income tax - tds on immovable property sale

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This query is : Resolved

bkshukla (Querist)

29 March 2014 I have been allotted one built-up independent house by Greater Noida Industrial Development Authority in the month of December, 2012. The cost of the house was declared by the Authority Rs.52,60,000/-. I took home loan from SBI and deposited the whole payment in the month of March, 2013. But Registration of Lease-deed was made on 6th June, 2013.

Now I want to know whether Section 194ia is applicable to me or not. Was I liable to deduct TDS before making payment to Authority or not? Please guide me.

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)

23 April 2014 Hi Shuklaji,

No, TDS will not be applicable in your case.

Section 194IA is only attracted for the transactions on or after 1st June, 2013.

For example:-
• Sale agreement is made before 1st June, 2013 but consideration received after 1st June, 2013 – Sec 194IA is not applicable.

• Advance consideration of Rs 5000,000 or more is received before 1st June, 2013 but sale agreement made after 1st June, 2013. – Section 194IA is not applicable.

Regards,
Devanand

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