Tds on immovable property

As per Section 194IA immovable property means any land or any building being part of it. TDS is not required to be deducted in case of a agricultural land. You have not mentioned the amount of sale consideration in your query. If it is below Rs 50 lakhs no need to deduct TDS.

Sir, Agreement cost is 1.07 Crore (Commercial Land) . which paid in 2005-06. But Sale Deed is done in 2014-15

Agree with @ sowmya G

You need to pay TDS of @ 1% on all immovable property transaction over Rs. 50 Lakhs under sec 194IA

What about the capital gain in the year 2005-06.

Since sale is taken place in the year 2005-06 and consideration was also received in the year 2005-06.

As transfer of the land has done in the year 2005-06 and the section 194IA was not applicable in that year.

 

So no need to deduct TDS in year 2014-15.

Yes...I agree with Jay...Since the tranfer is completed in FY 05-06 and also the consideration was received in the same year....the capital gains taxability arises in case of transfer of capital asset like land/building or any part thereof when the possession of caiptal asset is with purchaser..then only transferor is liabilty to pay capital gains....registration/executing sale deed are mere formalities in the eye of law...so far as section-194IA is concerned. ..it has no retrospective effect...also tax has already been paid in fy 05-06..there is no point of applicability of tds provision...thnks

Yes...I agree with Jay...Since the tranfer is completed in FY 05-06 and also the consideration was received in the same year....the capital gains taxability arises in case of transfer of capital asset like land/building or any part thereof when the possession of caiptal asset is with purchaser..then only transferor is liabilty to pay capital gains....registration/executing sale deed are mere formalities in the eye of law...so far as section-194IA is concerned. ..it has no retrospective effect...also tax has already been paid in fy 05-06..there is no point of applicability of tds provision...thnks

Thanks Kishan and Jai kumar. TDS under Section 194IA is applicable only for amount payable/paid from 01 June 2013 not on any payments made prior to this date.