Tds on sale of property

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MOHD SARFARAZ LATIBANI (Querist)

27 May 2019 My client has purchased a property worth 1.20 Cr (no of sellers : 3) sold by 3 brothers jointly, is TDS applicable on sale of Property
as there are 3 sellers and each one receiving sale consideration of less than 50 lakhs.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

27 May 2019 Here are the requirements for the TDS on sale of property. The buyer has to deduct TDS at 1% of the total sale consideration. Note that the buyer is required to deduct TDS, not the seller. No TDS is deducted if sale consideration is less than Rs 50lakhs. If installments are being paid TDS has to be deducted on each installment. Tax is to be paid on the entire sale amount. For example, if you have bought a house at Rs 55lakh, you have to pay tax on Rs 55lakh and not on Rs 5lakh (i.e. Rs 55lakh – Rs 50lakh). This is applicable even when there is more than 1 buyer or seller.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 May 2019 In Vinod Soni Vs. ITO, the Delhi Tribunal decided on 10-12-2018 that 50 Lakhs
exemption is applicable with respect to the amount related to each co-owner
transferee and not with respect to amount per sale deed.

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

28 May 2019 Thanks a lot B.Chakrapani Warrier for updating the knowledge

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