TDS on immovable property Section 194-1A (Joint Buyers)
5 months ago
The property value is 90 Lakhs but individual share of a buyer is 45 lakhs each (as it is a jointly owned property by husband and wife with 50-50% share on EMI deduction) in this case is TDS applicable ? as there is no clear guideline on this.
A.Dear Client
Section 194-IA should be interpreted from the perspective of Transferee (Purchaser) thus this limit of Rs. 50 Lakhs is for purchase consideration paid by each transferee and not on total consideration. In your case as consideration paid by each transferee does not exceed Rs. 50 Lakhs thus this section should not apply. But due to lack of clarity, Assessing Officer may demand compliance of this section.
Section 194-IA should be interpreted from the perspective of Transferee (Purchaser) thus this limit of Rs. 50 Lakhs is for purchase consideration paid by each transferee and not on total consideration. In your case as consideration paid by each transferee does not exceed Rs. 50 Lakhs thus this section should not apply. But due to lack of clarity, Assessing Officer may demand compliance of this section.
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