Statutory Framework : -
- As per Finance Act, 2013, (w.e.f. June’13) TDS (1%) has to be deducted…. by Buyer of the Immovable Property (other than agricultural land) for value exceeding Rs. 50 Lakh.
- As per Income Tax Rules, Agricultural Land coming under Notified Area would not be considered as “Agricultural Land” for the above said purpose.
Case for Opinion : -
- A (an agriculturist) entered into an Agreement for Sale with B (Non-Agriculturist) for sale of 4654 SqM of Agricultural Land (coming under Notified Area) and received 99% of consideration amount pending execution of Sale Deed.
- Before execution of the Sale Deed with B…. A, with consent of B, sold 1299 SqM of that Agricultural Land to C (an agriculturist) through registered sale deed. Though, B was not a confirming party to the registered sale, major part of consideration is paid to B at the instance of A.
- TDS @ 1% has been deducted on entire consideration amount i.e. paid to A & B.
Query : -
While we deposit TDS payable on consideration paid to A & B, whether TDS is payable on behalf of
- A only…as Sale Deed is between A & C
- A & B respectively for their share … as directed by Seller - A
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