I am paying installments for flat booked in Mumbai costing more than Rs. 50 Lakhs, the builder is arguing TDS on payment should be started after paid amount crosses Rs. 50 Lakhs. If his argument is right / wrong please add the rule number etc. in reply or advice.
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Tds on property purchase
Replies (9)
Yes tds needs to be deducted as per sec 194ia
| Originally posted by : dilip ranadive | ||
 |
I am paying installments for flat booked in Mumbai costing more than Rs. 50 Lakhs, the builder is arguing TDS on payment should be started after paid amount crosses Rs. 50 Lakhs. If his argument is right / wrong please add the rule number etc. in reply or advice. |  |
TDS should be deducted on Total considration @ 1% u/s 194 IA.
My question is TDS has to be deducted from first installment or after paying Rs. 50,00,000. in installments and then from the next installment?
TDS should be deducted on every part payment/installment.
@ dilip.... where total amt to be paid is more than 50lakhs then you need to deduct tds on every instalment paid.
| Originally posted by : Tribhuvan Aditya Singh | ||
|
@ dilip.... where total amt to be paid is more than 50lakhs then you need to deduct tds on every instalment paid. | |
Dear all
I think tds is applicable u/s 194ia if property value is excess Rs. 50 lac. suppose yours property value is One crore. & you have payment 20 lacs fist insttalment. then TDS is Applicable on this amount.
Thanks
Ramanuj
Basically for deducting TDS the rule is payment or credit which ever is earlier. Though this applies for organizations who maintain books, we can take consideration of same,since we know at the very instant that, the payment is exceeding the threshold hold, TDS to be deducted from initial day itself.
As per sec.194ia of income tax act if property value exceed Rupees 50 lacs tds liability will arise from payment of first installment.
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