TDS deduct on purchase of immovable property

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Gst Practicion
702 Points Posted on 28 March 2022
Hi all
Purchase of one land & building value amount of Rs 5 crore to be paid to seller by cheque. but its guidline value (govt municipal value) to be registered the property is 6 crore. Now my query is which value to be considered for Tds deduction?
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On 28 March 2022 at 20:36 Report
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Quick Summary
This discussion clarifies the deduction of Tax Deducted at Source (TDS) when purchasing immovable property. The key question is whether TDS should be calculated on the actual sale consideration or the higher stamp duty/government guideline value. Following amendments from the Finance Bill 2022, TDS is now applicable on the higher of the two values for transactions on or after 1 April 2022. This has implications for both the buyer in terms of TDS deduction and the seller regarding tax liability on the difference.

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Chartered Accountant
121 Points Posted on 28 March 2022
This issue is addressed by the finance bill 2022, wherein it is proposed to amend section 194-IA to state that TDS would be deducted on the sale consideration or stamp duty value whichever is higher. so if the transaction would take place on or after 1 April 2022, the TDS would be deducted on stamp duty value of INR 6 crores being higher than the sale consideration.
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On 28 March 2022 at 20:45
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CFO- at NHTF
58280 Points Posted on 28 March 2022
Value as per sale deed is to be considered for Tds purposes
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On 28 March 2022 at 21:03
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Profession
28267 Points Posted on 28 March 2022
Not only sale deed all expenses pertaining to put to asset to use is to be considered.
This is as per Accounting Standard.
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On 28 March 2022 at 21:09
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CFO- at NHTF
58280 Points Posted on 28 March 2022
It's not capital gain to consider expenses on transfer but it is Tds on sale of house property..

Purchaser has to deduct Tds and the value should be as per sale deed
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On 28 March 2022 at 21:16
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Gst Practicion
702 Points Posted on 29 March 2022
If Tds deducted on 6 crore, the excess Tds credit benifit will get by seller? Right
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On 29 March 2022 at 07:46
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Profession
28267 Points Posted on 29 March 2022
Accounting Norms is violated. Stamp Duty Value is ascertained not violating such norms. Do not segregate income tax from accounts. They are correlated.
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On 29 March 2022 at 08:18
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CFO- at NHTF
58280 Points Posted on 29 March 2022
Excess credit goes to seller but seller has to pay huge tax on 1 crores ( 6-5)
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On 29 March 2022 at 11:27
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Gst Practicion
702 Points Posted on 21 April 2022
One doubt in here in Form 26qb filing, my actual consideration is on 5 crores which I have to pay before Tds deduction, Tds deduction column what amount to be put? and what amount to be pay to seller after Tds deduction, if benchmark value is 6 crores
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On 21 April 2022 at 19:18

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