Provisions of TDS on sale of Immovable Property (Sec 194IA) – is as stated below:-
The provisions of this section states that TDS on sale of Immovable Property should be deducted at source from payment on transfer of immovable properties (other than agricultural land) where the consideration paid or payable is more than Rs 50,00,000/-. Earlier, there was no such TDS deduction was there in case of transfer of immovable properties.
But now if any person responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), is liable to deduct tax at source under section 194-IA.Where the transaction is less than Rs 50,00,000 /-, the liability to deduct tax at source will not be applicable.
Example: if Ram is selling his non agriculture plot to Shyam for INR 50,00,000/- than Shyam is liable to deduct TDS @ 1% i.e INR 50,000/-
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