TDS on TDR Purchase

TDS is applicable on 'transfer of development right' @ 10% per section 194IC.

Dear Sir,

194IC covers the specified agreement [section 45)5A)] wherein person owning the land or building or both allows another person to develop in consideration of a share in developed project. 

Whether TDS would be applicable on sale of TDR certificate? 

Transferable Development Rights - a technique of land development. TDR is a technique of land development, which separates the development potential of a particular parcel of land from it and allows its use elsewhere within the defined zones of the city. 

Sale of TDR is considered as sale of development rights.