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

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bkshukla (Querist)
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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)
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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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