What is the value of property and share of each buyer?
1. TDS u/s 194-IA needs to be deducted @ 1% where the consideration exceeds Rs.50 lakhs on the transfer of Immovable Property
2. In your case since the value of the property is Rs. 64,00,000, TDS @ 1% on the payment needs to be deducted before making the payment.
3. However, there is a case law which supports the non-deduction of TDS on the above type of transaction. In the case of Pradeep Kr. Soni, New Delhi VS ITO Dec 2018 purchase of plot by 4 different buyers which does not exceed Rs. 50 lakhs each but on aggregate comes to Rs. 1.5 crores. Department gave the decision by citing that TDS is individual specific and one individual cannot see whether the aggregate value of the transaction relating to the property exceeds Rs. 50,00,000, since he can compile only with respect to his payment.
4. In your case, the transferee cannot see how much others are paying and deduct TDS based on that amount. If his transaction exceeds Rs. 50 lakhs he is bound to compile with sec 194-IA and deduct TDS at 1%. Keeping the above argument into consideration department gave the decision in favor of the transferee for non-deduction of TDS even though in aggregate the value comes to Rs. 1.5 crores.
5. In my view, there is no need for deduction of TDS u/s 194-IA @ 1% on Rs. 64,00,000 but to avoid any mishap in the future on the above transaction and if the deduction of TDS is not a big compliance burden for you, I would advise you to deduct TDS and remit the same within the time limit.
Please correct me if the above interpretation has an alternative view.
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