I want to know that if land is sale for rs 20lakh then whether tcs has to be deducted as per new rule?

721 views 8 replies
Sir, I want to know if the land is sold partly in cash payment i.e more than 2Laks then whether TCS is to be deducted only on that amount of cash payment.or on whole amount of land,that the payment has been made by cash and cheque.
Replies (8)

Dear Sir, please note that as per sec 269SS payment can not be accepted in cash if amount is Rs. 20000 or more.

And applicability of TCS is only on sale of goods/service.

269SS applies to transaction on immovable property also from 01.06.2015 onwards...

269SS applies to transaction on immovable property also from 01.06.2015 onwards...

Tcs should be collected on whole amount and not just on the amount of cash payment. 

I think, we have to look this transaction from three angels

Land is capital good has specified section 194 IA for TDs.

And 206 (1d) specifically excludes payments made as per chapter xvii b.

This transaction fall under chapter xvii b.

 

Third from section 269ss.

I think we have to analyse in the following way.

1. If land purchased from developer by way of cash TCS will attract. Since for him it's sale of goods.  For others it's a capital asset. Hence, TCS will not attract. 

2. section 269SS is applicable for all the assesses

TCS applicable on all cash transactions involved in sale or purchase of goods and services by way of cash exceeding  limit as per finance act2016

sir,

 

So at the end of the day whether TCS is to be collected or not from sales of land that is in cash payment.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register