Question ID : 37975

TDS ON SALE OF PROPERTY

A FLAT COSTING RS 80 L, IS PURCHASE BY TWO BUYER, SHARING 50% EACH. I WANT TO KNOW WHETHER TDS ON SALE OF PROPRETY IS REQUIRED TO BE DEDUCTED AS EACH BUYER SHARE IS LESS THAN 50 L, BUT OVERALL COST OF PROPERTY IS RS 80 L 2. A ENTERS INTO AN AGREEMNT TO BUY A FLAT OF RS 60 L WITH A BUILDER , DELIVERY OF FLAT WILL BE MADE IN NEXT TWO YEARS, AND AMOUNT IS ALSO PAYABLE BY A IN SCHEDULE WAY SPREAD OVER 18 MONTHS, I WANT TO KNOW WHEN TDS WILL BE DEDUCTED, VIZ ; WHETHER IT WILL BE DEDUCTED AT THE LAST PAYMENT DATE, OR TDS WILL BE DEDUCTED AS SCHEDULE PAYMENT IS MADE, OR IT SHOULD BE PAID IN ONE INSTANCE SAY IN 1ST PAYMENT MADE TO BUILDER

Answer ID : 76264

Section 194-IA(1) will not applicable where the consideration for transfer of immovable property is less than Rs. 50,00,000. However, section 194-IA(1) is applicable on any person being a transferee, so section 194-IA(2) is also, obviously, applicable only with respect to the amount related to each transferee and not with reference to the amount as per sale deed. In the instant case there are 2 separate transferees and the sale consideration with respect to each transferee is Rs. 40,00,000, hence, less than Rs. 50,00,000 each. Reference: [2019] 101 taxmann.com 190 (Delhi - Trib.) IN THE ITAT DELHI BENCH 'B' Vinod Soni v. Income-tax Officer, TDS-Ward, Faridabad.

Answer ID : 76266

No tax is required to be deducted at source as both of the joint owners pays consideration which is less than Rs 5000000/-.

Answer ID : 76277

Threshold for TDS is applicable per transferee and not on consideration mentioned in sale deed. Hence no TDS should be deducted in this case.

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