I am purchasing a property(under construction) and have executed a sale agreement for the land (uds) for 28 lakhs and also registered the construction agreement for 80 lakhs. Will I need to deduct TDS in my payments as the total value exceeds 50 lakhs? My builder claims TDS is not applicable as the land value is less than 50 lakhs. Please advise.
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Tds on purchase of property
Replies (4)
FROM JUNE 1st 2013, WHEN A BUYER BUYS IMMOVABLE PROPERTY (i.e. a building or part of a building or any land other than agricultural land) COSTING MORE THAN RS 50 LAKHS HE HAS TO DEDUCT TDS WHEN HE PAYS THE SELLER . THIS HAS BEEN LAID OUT IN SECTION SECTION 194-IA OF THE INCOME TAX ACT
Agree with above
In this case, the land is registered and construction is yet to happen. As per the builder's auditor, the land is the immovable property and construction is not.We understand the changes based on 2013 rules.However, the provision is debatable. Hence, require some guidance based on similar cases /instances.
it will depend upon what bill u received for this payment and what mention in it if it for purchase for inmovable properity then u
require to deduct tds as per section 194-IA for tds rule is due or payment whichever earlier (u have to paid tds ) so if the payment
is first then tds has to be deducted
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