Question ID :
38030
TDS on property
Mr. X has alloted a plot (Lease -90 years)by Authority for Rs. 47.00lacs and Mr. X has opt for payment option as 10% down payment i.e 4.7 lacs immediately and balance in 10 equalhalf yearly instalment with 10.5% p.a int and Lease Rent-10% will also levied after 5 years
My querry is whether Mr. X has to deduct 1% TDS of payment as total consideration paid by Mr. X is exceeds Rs. 50 lacs (with Int) Whether TDS will deducted on LeaseRent also.
Posted by
SANDEEP KAPOOR
on
Mar 10, 2019
Filed Under
TDS/TCS
no 1% TDS is not required to be deducted. As the acquisition is in the form of lease . person is getting right to use the benefit for the lease period. Certainly the TDS is required to be deducted on the lease rentals as well as interest paid by the lessee to lessor.
Posted by
CA. JHA SHANKAR KUMAR on
Mar 11, 2019
Answer ID :
76370
No. TDS should not be deducted on sale consideration in case of leasing transaction. However TDS on amount of lease rent should be deducted under section 194I.
Posted by
CA. chunauti dholakia on
Mar 12, 2019