Quick Summary
Section 194-IA of the Act provides for deduction of tax on payment on transfer of certain immovable property other than agricultural land. Sub-section (1) of the said section provides for deduction of tax by any person responsible for paying to a resident any sum by way of consideration for transfer of any immovable property (other than agricultural land) at the time of credit or payment of such sum to the resident at the rate of one per cent. of such sum as income-tax thereon. Sub-section (2) p
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1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
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FAQ :
The main change is that TDS will now be calculated on the higher of the sale price or the stamp duty value of the property, rather than just the sale price.
These amendments will take effect from 1st April, 2022.
No, the provisions of Section 194-IA and its amendments specifically exclude agricultural land.
The TDS rate remains at one per cent of the sum paid or credited, or the stamp duty value, whichever is higher.
Yes, if both the consideration paid for the property and its stamp duty value are less than fifty lakh rupees, then no TDS is to be deducted.
The change was made to remove an inconsistency between Section 194-IA (TDS on property sales) and Sections 43CA and 50C of the Act, which already consider stamp duty value for income computation.
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