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194ia

Suresh Pai S (Tax Consultant) (1029 Points)

23 September 2017

A property is purchased by husband and wife together for 60 lakhs. Wife contributed 30 lakhs out of the sum gifted by her husband. Is this transaction liable for deduction
of tax u/s 194IA?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 September 2017

Yes, the section is applicable as and when the cost of property (other than agricultural land) exceeds 50 lakhs Rs. (Important point is The quantum of payment/s must be Rs. 50 lakhs or more.) The individual share of purchaser/s may be less than 50 lakhs, that doesn't matter.

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RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 23 September 2017

Dear Dhirajlal Sir,

Please explain one more... Bcoz the Share is 50/50.... Then How...?

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RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 23 September 2017

@ Suresh.,

The property is Single Hand or Both hand...?!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 23 September 2017

Because agreement is single......... and not bifurcated.......... only shares of purchasers will be 50:50 or as defined otherwise, but TDS liability will be over both as per their payment ratio.........