SEO Sai Gr. Hosp.
212039 Points
Posted on 20 February 2018
194-IC. Notwithstanding anything contained in section 194-IA, any person responsible for paying to a resident any sum by way of consideration, not being consideration in kind, under the agreement referred to in sub-section (5A) of section 45, shall at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax thereon. ]
Meaning of joint development agreement- It is a registered agreement in which a land owner (i.e, a person who owns land or building or both) agrees to allow another person to develop a real estate project on such land or building or both, in consideration of a share (being land or building or both) in such project, whether with or without payment of part of the consideration in cash.
Under redevelopment of any property, the rent paid is reimbursement for alternate accomodation till the time period of redevelopment of the existing property.......... so, here TDS will not be applicable. But if it is paid as part and parcel of the property consideration..... liability would arise.