Tds in section 194ib

TDS 264 views 13 replies
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junior lecturer
63 Points Joined April 2013

My client buy a property with his friend . Property is registered under both of them.Total payment is 70 lakh. My client pay his 35 lakh from his account. And his friend pay his share of 35 lakh from his account. In this case property value is below 50 lakh for my client, will my client liable to deduct tds under section 194ib.

 

Please somebody reply .

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On 03 July 2022 at 16:42 Report
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5 Points Joined July 2022
Yes tax will be deducted total value of property
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On 03 July 2022 at 18:04
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CFO- at NHTF
58280 Points Joined August 2012
Since it is joint property, share of both joint holders will be considered. Hence 194IB is applicable on 70lacs
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On 03 July 2022 at 18:09
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2351 Points Joined July 2017
In my opinion....if property value is less than 50 lakh INDIVIDUALLY then I think tds will not apply
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On 03 July 2022 at 18:24
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5 Points Joined July 2022
Both will deposit tax against seller pan as per percentage of share
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On 03 July 2022 at 18:30
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CFO- at NHTF
58280 Points Joined August 2012
It's Section 194IA ,

According to Section 194IA, the buyer of an immovable property must deduct TDS at 1% while making the payment to the owner or seller of the property. Some conditions that apply to the above rule include: TDS cut is made by the buyer and not by the seller. Tax is applicable only for transactions over ₹50 lakhs.

Since the transaction is above 50lacs , Tds is applicable
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On 03 July 2022 at 18:30
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Chartered Accountant
86505 Points Joined April 2011
No need to deduct TDS as individual consideration is less than Rs 50 lakhs, refer cas law of vinod Soni vs ito-tds faridabad
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On 03 July 2022 at 18:38
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junior lecturer
63 Points Joined April 2013

Thanks ma'am , i checked the case which you mentioned.

One more question.  The seller is asking pan detail of my buyer. Should my buyer provide the pan detail to seller

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On 03 July 2022 at 18:48
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Chartered Accountant
86505 Points Joined April 2011
Yes same is required to be quoted in ITR.
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On 03 July 2022 at 19:08
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2351 Points Joined July 2017

Already adhar and pan must be mentioned in sale deed......it is mandatory to give pan and adhar in sale deed......why asking .....just refer deed

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On 03 July 2022 at 19:49
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Chartered Accountant
86505 Points Joined April 2011
Sometimes only aadhar mentioned in deed
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On 03 July 2022 at 21:35
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junior lecturer
63 Points Joined April 2013

Thanks to all of you for clearing my doubt.

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On 04 July 2022 at 08:23
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28012 Points Joined May 2017

paying tds is compulsory while purchasing house.

 

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On 04 July 2022 at 09:10
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Chartered Accountant
86505 Points Joined April 2011

Welcome Dear...............

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On 04 July 2022 at 11:12


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