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Tds u/s 194-ia

Kashish Gupta (B.com (H) , ACA) (368 Points)

21 August 2013

Dear Friends

Please give me suggestion regarding below mentioned query-:

Mr. X purchased a Residential House Property for Rs. 52,00,000 consideration being paid as –

· Cash Rs. 7,00,000

· Loan From Bank – Bank Disbursement Rs. 45,00,000

A. Discuss the deductibility of TDS u/s 194-IA.

B. whether bank can deduct TDS and procedure would required to be followed?

C.If Bank can become eligible to deduct TDS, then what procedure should be followed for Form No. 16B which is required to be deposited with seller?

[Assume you are Chartered Accountant and Mr. X is your client and you are seeking advice regarding filling up of Form No. 16B]

Thanks.

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3 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 21 August 2013

I think the bank will deduct TDS and file the returns, and will give the form 16B to the seller, with a copy to you.

Since it is a new law, a lot of information is still not known to people.

You can go through the file.

Attached File : 124539 1222207 complete note on 194 ia of income tax act1961.pdf downloaded: 374 times

1 Like

Pankaj (Chartered Accountant) (118 Points)
Replied 23 August 2013

Well, I think that TDS would be deducted respectively i.e. Rs. 7,000 by Mr. X himself and Rs. 45000 by the Bank and as regards Form 16B that will also issued respectively. And normal procedure will be followed

Form 16B has not been available as of now through NSDL website, the work for the same is in progress and for the time being one can issue Form 16B to seller after filling it manually. Nevertheless the Seller would get the credit for TDS in his Form 26AS.

Thanks.

saurabh modi (branch manager) (29 Points)
Replied 02 October 2013

I HAVE BOUGHT A PROPERTY (UNDER CONST-POSSESSION DEC 2014)INCLUSIVE ALL AS PER FOLLOWING (AGREEMENT TO SALE , AGREEMENT TO CONSTRUCTION, CAR PARKING,CLUB HOUSE, MAINTAINANCE DEPOSITE, MAINTAINANCE EXPENSES, LEGAL EXP, SERVICE TAX, VAT. 1. MY 1ST QUESTION IS WHICH R THE ABOVE SAID EXP TO BE CONSIDERED IN TOTAL SALES CONSIDERATION. 2. TOTAL COST IS INCLUSIVE ALL 70 LACS, I HAVE PAID 25 LACS BY 31/05/13, BALANCE ILL PAY FROM 1ST JUNE TILL POSSESSION. TDS DEDUCTION IS APPLICABLE ON TOTAL 70 LACS OR ON BALANCE PAYMENT AFTER 1ST JUNE 45 LACS. PLS REPLY AT THE EARLIEST. THNX

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