WHO WILL PAY TDS UNDER SECTION 194IA?
This query is : Resolved
07 August 2025
Dear Sir,
A DIRECTOR PURCHASE A PROPERTY HIS OWN NAME ABOVE 50 LAC AND PAY ALL THE PAYMENT TO SELLER THROUGH PVT LTD. COMPANY'S BANK ACCOUNT. IT IS POSSIABLE OR WHO WILL PAY TDS AMOUNT DIRECTOR OR COMPANY?
DIRECTOR, NEVER PAY SINGLE AMOUNT FROM HIS BANK ACCOUNT AND COMPANY WILL PAY ALL THE PROPERTY VALUE?
IT IS ETHICAL AS PER COMPANY LAW?
PLEASE SUGGEST.
A DIRECTOR PURCHASE A PROPERTY HIS OWN NAME ABOVE 50 LAC AND PAY ALL THE PAYMENT TO SELLER THROUGH PVT LTD. COMPANY'S BANK ACCOUNT. IT IS POSSIABLE OR WHO WILL PAY TDS AMOUNT DIRECTOR OR COMPANY?
DIRECTOR, NEVER PAY SINGLE AMOUNT FROM HIS BANK ACCOUNT AND COMPANY WILL PAY ALL THE PROPERTY VALUE?
IT IS ETHICAL AS PER COMPANY LAW?
PLEASE SUGGEST.
08 August 2025
If the property is in the name of the Director, but payment is made by the company, this could be considered a Benami Transaction under the Benami Transactions (Prohibition) Act, 1988.
Section 2(9) defines a benami transaction as where a person pays consideration for a property, but the property is held in another person's name.
TDS @1% is required if sale value exceeds ₹50 lakh.
Buyer (Director) is required to deduct and pay TDS.
But since the Company paid, practically Company will deduct and pay TDS in Form 26QB.
However, this creates ownership and tax confusion.
Current setup is not ethical/legal under company law unless corrected immediately.
Section 2(9) defines a benami transaction as where a person pays consideration for a property, but the property is held in another person's name.
TDS @1% is required if sale value exceeds ₹50 lakh.
Buyer (Director) is required to deduct and pay TDS.
But since the Company paid, practically Company will deduct and pay TDS in Form 26QB.
However, this creates ownership and tax confusion.
Current setup is not ethical/legal under company law unless corrected immediately.
24 September 2025
Good Luck...
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