02 March 2013
A NORMAL CITIZEN WHO SELL HIS PERSONAL IMMOVABLE PROPERTY TO ANY ANOTHER NORMAL CITIZEN, WHO DOES NOT HOLD ANY TAN THEN HOW TO DEDUCT TDS IF TRANSACTION EXCEEDS 50 LAKHS @ 1% AND TDS IS DEDUCTED ON WHICH AMOUNT -FULL VALUE OR ONLY GAIN PORTION. SHOULD BE THE GAIN LONG OR SHORT TERM? IF SEC 54 OF I.TAX IS APPLICABLE, MEANS GAIN IS EXEMTED THEN TDS WILL BE DEDUCTED?
02 March 2013
The intention of the provision is to widen the tax net and hence on transaction of sale of immovable property exceeding rs.50 lakhs the buyer shall be required to deduct TDS, even if the seller has to claim exemption. The key would be can the seller make application for nil or lower deduction and would the authorities grant the same.
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