Tds on property

Originally posted by : Bimal Jain
	Sir / Madam This is in reference to the provision of Section 194 IA of Income tax Act. My queries are as follows: 1) If the agreement were executed for purchase of property as on 1st June 2010 whether this transaction attracts the provisions of Section 194IA i.e. TDS on Immovable Property. And I have make some payments before June 1, 2013.  And after June 1, 2013 the balance remain just 10 lacs. Shall i have to deduct TDs on just rupees 10 Lacs or on sale  consideration. 2) If a property have been purchase in joint name then also TDS  we have to deduct TDS ? Kindly revert. Thanks, Bimal Jain

1) TDS u/s 194-IA shall be deducted even if the transaction takes place before 1^st June, 2013 and payment is made after 1^st June, 2013. However, if credit to the account of the transferor has been given before 1^st June, 2013 then provisions of section 194-IA will not apply, even if payment has been made after 1^st June, 2013 (Payment or credit whichever is earlier).
.
2) The threshold limit of Rs. 50 Lacs is with reference to each property. If a property transaction involves more than one buyer and share of each buyer in the property is less than Rs. 50 Lacs but the value of the property in aggregate is more than Rs. 50 lacs then provisions of section 194-IA will be applicable.
.
Courtesy: CA Rachana Kanoi