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Sub:- query for tds under section 194-ic income tax act

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Subhas Das

21 Points Posted on 11 October 2017

Dear Sir,

I have made an agreement with the Building Developer on 01/08/2016, as per agreement Developer have to pay Rs.8 lacs at the time of handover my land for the development. Today 10/10/2017 after one year of agreement Developer pay Rs. 8 lacs but they are deducted @ 10% TDS as per section 194-IC, as the fact that is it correct or not ? As per section 194 IC, it is clearly mention that "TDS ON PAYMENT UNDER JOINT DEVELOPMENT AGREEMENT W.E.F. APRIL 2017", Tax deducted @ 10%, if PAN of recipient is not available, tax is deductible at the rate of 20%

Sir, please guide me that my agreement done on 01/08/2016, have any right to deduct TDS @ 10% by the Developer.against our development agreement between Land Lord & Developer. on 01/08/2016.

Thanks & Regards,

Subhas Das

8902428310

Attached File : 1617380 20171011152412 tds.xlsx downloaded: 366 times

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 12 October 2017

Builder has deducted it on safer side........ as he paid the amount after April,2017.

You can claim the excess amount after payment of capital gains liabilities, if any, by filing ITR.......

In a way you can take the advantage of not paying the liability last year........ otherwise your liability to pay tax was when you had handed over the possession of land to builder !!!