During the FY 2020 - 21, I entered in to development agreement with a land lord for the construction of 10 flats. I constructed 10 flats and sold 5 in the open market for Rs. 32,00,000/ each and given 5 flats to the land owner. I didn't paid any monetary consideration to the landlord except 5 flats in exchange for land. in this situation I want to know whether TDS u/s 194IA or any other sections of income tax will trigger or not. the above transaction is closed in the fy 2020-21 itself.
please guide me with the above transaction. thanks in advance.
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TDS under section 194IA for flats to landlord in exchange of land
Replies (3)
Section 194 I will be applicable if sales Consideration is more than 50 lacs at the rate of 1%
My question here is whether 194IA is applicable in JDA, if yes, whether TDS to be considered flat wise or building wise
194ia will not apply as you have only contracted for development rights on the land. you never actually received the title in property. i think such transaction is not covered under any tds section. so there will be no tds at all.
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