Tds 194 ia on sale of immovable property

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CA Ravindra

Chartered Accountant

34 Points Posted on 10 March 2014

To whom Section 194 IA TDS on Sale of Immovable Property will be applicable under following case study: A Purchase a property other than Agriculture Land for Consideration of Rs. 4.00 Cr. B, C, D, E, F & G are the co-owner of property who sales his property to A. Consideration of 4.00 Cr is distributed as follows: B: RS. 1.20 Cr C: Rs. 1.50 Cr D: Rs. 0.51 Cr E: Rs. 0.25 Cr F: Rs. 0.30 Cr G: Rs. 0.24 Cr Whether TDS to be deducted on 4.00 Cr or individual limit is to be checked?

Replies (4)

CA Dheeraj

Chartered Accountant

24 Points Posted on 10 March 2014

The section 194Ia states that TDS on sale of Immovable Property should be deducted at source from payment on transfer of immovable properties (other than agricultural land) where the consideration paid or payable is more than Rs 50,00,000/-.

According to me above stated section checks the property value aspect and not the individual share, so if a property value exceeds 50lac buyer need to deduct tds.

Additional Information

Section 194Ia: Made it mandatory for buyer to deduct TDS on purchase of any property above Rs. 50Lac after 1-June 2013

26QB is challan cum return- Buyer need to be file online as other TDS challan

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

16B is the certificate which buyer needs to issue to the seller with in 15 days from the due date of deposit of TDS

Thanks

CA Dheeraj

Chartered Accountant

24 Points Posted on 10 March 2014

According to me above stated section checks the property value aspect and not the individual share, so if a property value exceeds 50lac buyer need to deduct tds.

Additional Information

Section 194Ia: Made it mandatory for buyer to deduct TDS on purchase of any property above Rs. 50Lac after 1-June 2013

26QB is challan cum return- Buyer need to be file online as other TDS challan

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

16B is the certificate which buyer needs to issue to the seller with in 15 days from the due date of deposit of TDS

Thanks

Shiva Kumar

CA Job

22 Points Posted on 02 April 2014

Question: A & B are the owners of a property (joint owners or co-owners). They intend to sell to a single buyer. The transaction value is say 60 lakhs. The provisions of Sec 194IA are applicable right. In this case can the entire payment be made to one owner if the other owner consents for? secondly, how many TDS certificates need to be issued?....Thanks.