TDS ON section 194IA

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This discussion clarifies the applicability of TDS under Section 194IA for property purchases. It explains that the ₹50 lakh threshold applies to the property's value, not the payment amount. TDS must be deducted on any payment or credit made towards a property exceeding this value, including advances. The conversation also touches upon interest charges for delayed TDS deposits, noting that a month's delay incurs one month's interest.

ketan

ketan (Querist)
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25 January 2022 i purchase new Flat of 1.75 Lakh. By Bank 40 lakh payment to seller on 10th Nov & 20 lakh payment on 14th january.

Now any interest is applicable on 10Th Nov payment Rs.40 Lakh ? it is under the limit

please guide

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 January 2022 Interest over late payment of TDS would be charges.

ketan

ketan (Querist)
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25 January 2022 Nov payment Rs.40 lakh. but TDS applicable above 50 Lakh than my liability stand on january ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 January 2022 It is not the threshold limit for TDS deduction, but for the value of the property over which TDS deduction is applicable.

ketan

ketan (Querist)
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25 January 2022 ok, If property value is over 50 Lakh than any amount paid /credited to seller than deduct TDS & deposit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 January 2022 Yes, including any advance paid...

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ketan

ketan (Querist)
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25 January 2022 Sir , Payment Dt.25 November in this case 1% interest calculate on 40 Lakh. Deposit Dt 31 Dec. if not paid than interest charge for 1 month or 2 month ? if paid in jan-2022

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 January 2022 2 Months.

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