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Tds on transfer of immovable property - query

Arjun Hariharan (Asst. Manager) (181 Points)

12 June 2013

Sec. 194 IA is effective from 1/6/2013. Suppose there is case where the total consideration is Rs. 2 Cr, Rs. 1 Cr was paid as advance in January 2013 & balance Rs. 1 Cr is being paid now at the time of registration of property, on what amount should TDS of 1% be deducted? on Rs. 1 Cr or 2 Cr?

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10 Replies

Dhruvi N suthar (Account Executive) (303 Points)
Replied 12 June 2013

With effect from June 1 2013, any person who acquires an immovable property (other than agricultural land) from a resident transferor and where the value of consideration exceeds Rs 50 Lakhs, shall be required to deduct tax at source at the rate of 1 percent.

1 Like

Dhruvi N suthar (Account Executive) (303 Points)
Replied 12 June 2013

TDS on whole Amount only & not on 1 crore

karuna Gautam (SSS) (37 Points)
Replied 12 June 2013

Transferee will have to pay 1% TDS at the time of credit of such amount to the account of transferor or at the time of payment of such amount whichever is earlier. It means transferee will pay 1% TDS on 2 Cr.

Dhruvi N suthar (Account Executive) (303 Points)
Replied 12 June 2013

Yes I Agree

DIBYENDU (SERVICE) (266 Points)
Replied 13 June 2013

Translation effected in transferee account will be deduct @ 1% TDS on or after 01-06-2013 so, TDS @ 1% will be deduct from 1 crore, 1 crore collected before 01-06-2013 no TDS.

DIBYENDU (SERVICE) (266 Points)
Replied 13 June 2013

Translation effected in transferee account will be deduct @ 1% TDS on or after 01-06-2013 so, TDS @ 1% will be deduct from 1 crore, 1 crore collected before 01-06-2013 no TDS.

Dhruvi N suthar (Account Executive) (303 Points)
Replied 13 June 2013

Dear DIBYENDU,

It is not like that

please refer budget particulary in this matter

CA Prakash (Chartered Accountant) (475 Points)
Replied 11 June 2014

Please read article https://www.simplifiedlaws.com/tds-on-sale-of-immovable-property

Chegi Reddy Pothi Reddy (Student) (171 Points)
Replied 21 March 2016

the above site is not available

Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 21 March 2016

TDS @ 1% on the value of transfer of immovable property where the consideration is Rs. 50 Lacs or more to be deducted either at the time of making payment or crediting of any sum as consideration for transfer of immovable property, whichever is earlier.

He has to pay TDS @ 1% on Rs 2 crore.