Tds on purchase of immovable property u/s 194ia

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2013 KINDLY GUIDE ME ON BELOW ISSUE:

OUR CLIENT HAS PURCHASED 1 NEW PROPERTY ON 05/06/2013 FOR RS.52,00,000/-. AS PER THE NEW PROVISIONS OF SECTION 194IA, TDS TO BE DEDUCTED.

BUT MY QUERY IS THAT HERE SELLER PARTY IS IN JOINT NAME.PROPERTY WAS IN JOINT NAME OF HUSBAND AND WIFE. MEANS OUR CLIENT HAS GIVEN 2 CHEQUES OF RS.26,00,000/- EACH TO BOTH SELLERS.

HENCE PROPERTY VALUE IS MORE THAN RS.50,00,000/- BUT CONSIDERATION PAID TO EACH PARTY IS LESS THAN RS.50,00,000/-.

WHETHER OUR CLIENT IS REQUIRED TO DEDUCT TDS U/S 194IA????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

24 July 2013 YES.
.
THE PROPERTY TRANSFERRED through a single document IS HAVING CONSIDERATION EXCEEDING Rs. 50.00 LACS.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

24 July 2013 if purchase transaction and payment was done before 1.7.2013 then no tds is to be deducted.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

24 July 2013 sir but if evrything completed before 1.7.2013 then whether tds is deductible or not?

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2013 THE RELEVANT SECTION IS WITH EFFECT FROM 01-06-2013..AND IN PROVISO IT IS STATED THAT WHEN PAYMENT IS MADE AFTER 01/07/2013, TDS IS TO BE DEDUCTED..
IN MY CASE AGREEMENT DATE IS 07/06/2013 AND PAYMENT IS MADE ON 04/06/2013..26LACS CHEQUE TO WIFE AND 26LACS CHEQUE TO HUSBAND..

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