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Section 194ia (tds on sale of immovable property)

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Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2014 Dear Experts, I am mentioning my query as under:
I have a client who had entered into sale agreement on 15.05.2013 for purchase of flat summing amount 1 crore BUT he paid the amount on 15.08.2013(ie; after 01.06.2013). Is TDS deductible under Section 194IA?

I have read several articles on this but i could not get the base behind them. Would you please give complete explanation so that I could advise my client for the same?

Thanks in advance!

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)

01 April 2014 Section 194IA not applicable.

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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