Tds on sale of immovable property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2015 I purchased a flat for 58Lakhs, all paid through white money (bank cheques and loan). Registered for less (guided value) which is 40 Lakhs. Do I have to deduct TDS of 1% from the seller? If not would I be in trouble later that I paid 58Lakhs and not deduct TDS from seller?

please give me ur valuable advice....

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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08 January 2015 Section 194IA requires TDS at the time of credit of sum to the account of the transferor or at the time of issue of cheque or in cash where the purchase consideration is more than 1 lac.

In your case I think you will be liable to deduct tax @1% since all money has been paid in white through cheques and loan and section requires the tax to be deducted at the time of issue of cheque or credit into the account.
Wait for other opinions.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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08 January 2015 The above 1 lakh should have been rs 50 lakhs.

Registration value is not imp but the agreement value is more then 50 lakhs hence tds is deductible.

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