Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Tds u/s 194IA Property

341 views

Save Share

shashank kumar sultania

125 Points Posted on 27 December 2022

Hello Friends,
Can anyone help me regarding Quarry related to TDS:
Ifield one 26QB for purchase of property and DEDUCTED TDS as per recent amendments applicable from 1st April, 2022 that if anyone purchase property and if value is more than 50 lacs then tds to be deducted @ 1% from sale consideration or SDV of that property whichever is higher. But when i downloaded Form 16B the amount of tds is reflected there is @ 1% of sale construction not SDV.
HELP ME WHY THIS HAAPEN????

Replies (3)

Quick Summary

This discussion clarifies a common query regarding TDS u/s 194IA on property purchases. While the buyer must deduct TDS at 1% on the higher of the sale consideration or Stamp Duty Value (SDV) for properties over ₹50 lakh, Form 16B may only reflect the TDS calculated on the sale consideration. This discrepancy is normal, and the credit received for TDS will be based on the amount deducted by the buyer.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 27 December 2022

Yes, the purchaser is required to deduct TDS on the FMV or purchase value, whichever is higher. So, you have deducted it correctly. But the department is declaring it in form 26AS as per the purchase value only, for which you need not worry.