Question ID :
40510
Tax deduction u/s 194IA
"A" entered into an agreement to purchase a land for Rs. 14 Cr. and paid an advance of R. 8Cr. on 12-03-2012. No deduction was made u/s 194IA as the section came into existence only on 1-06-2013. Subsequently Rs. 6 Cr. were paid on 16-12-2019 and TDS was deducted on the amount of R. 6Cr. Now the sale deed is being executed. Whether TDS is required to be deducted on R. 8Cr. paid earlier at the time of execution of the sale deed?
Posted by
SANTOSH JAGANNATH PAI
on
Dec 21, 2019
Filed Under
TDS/TCS
As per Finance Bill of 2013, TDS is applicable on sale of immoveable property wherein the sale consideration of the property exceeds or is equal to Rs 50,00,000 (Rupees Fifty Lakhs). Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% should be deducted by the purchaser of the property at the time of making payment of sale consideration. Tax so deducted should be deposited to the Government Account through any of the authorised bank branches.
It is not applicable on any amount paid before 1.06.2013.
Posted by
Shrawan Suthar on
Dec 23, 2019
Answer ID :
80305
TDS is required to be deducted only on instalment paid after 02.06.2013. Hence no TDS should be deducted on instalment of Rs. 8 Cr. paid before 01.06.2013.
Posted by
CA. chunauti dholakia on
Dec 23, 2019