Whether the liabiltiy to deduct TDS arises U/s 194 IA of the I.T.Act,1961 in case there are 4 Buyers and 6 Sellers and total consideration of single sale deed exceeds Rs.5000000/-????
CA.AZAD JAIN (CA) (201 Points)
19 January 2015Whether the liabiltiy to deduct TDS arises U/s 194 IA of the I.T.Act,1961 in case there are 4 Buyers and 6 Sellers and total consideration of single sale deed exceeds Rs.5000000/-????
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 19 January 2015
HI Azad,
The threshold limit u/s 194IA is individual property wise and not transferee wise. Hence, if full value of consideration of the single property exceeds Rs.50 lakhs then even if individual share of co-owners is below Rs.50 lakhs, buyer liable to deduct TDS u/s 194IA @ 1% on every persons individual consideration and deposit with department through challan cum return form.
Thanks and Regards,
Manoj B. Gavali
CAclubindia
