Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Tds on property purchase

dilip ranadive (consultant) (48 Points)

29 June 2014

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.

Reply
Follow
Share

9 Replies

JAINENDRA JAIN (ACS/CA) (1668 Points)
Replied 29 June 2014

Yes tds needs to be deducted as per sec 194ia

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 29 June 2014

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.

dilip ranadive (consultant) (48 Points)
Replied 29 June 2014

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?

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 30 June 2014

TDS should be deducted on every part payment/installment.

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 30 June 2014

@ dilip.... where total amt to be paid is more than 50lakhs then you need to deduct tds on every instalment paid.

Stranger (.) (5531 Points)
Replied 30 June 2014

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.

Ramanuj (Accountant.) (834 Points)
Replied 30 June 2014

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

RGKamath (Audit assistant) (137 Points)
Replied 30 June 2014

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.