Tds on purchase of property

825 views 1 replies

I have purchased flat and entered into sale agreement in the year 2011 for a total consideration of Rs.65Lakhs under construction linked plan and taken a loan of Rs.45 Laks from SBI. The instalments are being paid by borrowing from the Bank as and when demand is raised by the seller. I have already paid Rs. 40 lakhs till 31st March'14. Next instalment of Rs. 3.50 lakhs is due to be paid by 10thApril'14 as per demand raised by the seller. I would like to know whether I should first deposit TDS @ 1% i.e; Rs.3500  or Bank will deduct TDS and disburse the remaining amount of Rs.3,46,500 or let the Bank first disburse the loan equivalent to instalment less TDS and later on I can deposit the TDS within 7 days of making the payment to seller.

Replies (1)

Hi Vinod,

 

There will be no TDS u/s 194IA.

 

Section 194IA is only attracted for the transactions on or after 1st June, 2013. For example:-

 

  • Sale agreement is made before 1st June, 2013 but consideration received after 1st June, 2013 – Sec 194IA is not applicable.

 

  • Advance consideration of Rs 5000,000 or more is received before 1st June, 2013 but sale agreement made after 1st June, 2013. – Section 194IA is not applicable.

 

 

Regards,

Devanand


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register