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Date of liable to deduct TDS on sale of property

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Yogendra Singh

103 Points Posted on 23 May 2023

Respected sir/Madam,
I have 1 query
My client for example name is Mr. A. Has purchased property form 2 person name Mr X and Mr. Y (both are jointly owned the property). There is only one sales agreement.

The date of agreement are 05/04/2023.

BUT

the date of payment to MR. X are 31/03/2023.
and
to MR Y are 24/04/2023.

As per sec 194IA liable to deduct TDS are at the time of payment for OR at the time of credit, whichever is earlier.

Please advise me the,

What is the date of liable deduct the TDS in the case of MR X and for MR. Y?

Replies (5)

Quick Summary

This discussion addresses the crucial question of when TDS (Tax Deducted at Source) is liable to be deducted on property sales under Section 194IA. The core issue revolves around determining the correct date for TDS deduction when payments are made to joint owners on different dates, even if a single sale agreement exists. The advice clarifies that TDS liability arises at the time of payment or credit, whichever occurs first, and highlights the importance of using the actual payment dates for each seller when calculating the deduction.