TDS on immovable property purchased from local authority
2 months ago
If plot purchased from Local authority which is more than 50 lakh, will be under TDS deduction or will be exempted ?
A.Dear Client,
Section 194IA of the Income Tax Act, 1961 prescribes that a buyer of immovable property that costs more than Rs. 50 lakhs is required to deduct TDS @ 1% of the total consideration amount of the property while paying the seller and deposit it with the Government Treasury. The penalty for not paying TDS on immovable property can be up to Rs. 1 lakh under Section 271H of the I T Act. To avoid penalty, you can pay the TDS, interest amount and late payment fee as soon as you receive a tax notice. You can consult with a CA or Tax Consultant in this connection.
Section 194IA of the Income Tax Act, 1961 prescribes that a buyer of immovable property that costs more than Rs. 50 lakhs is required to deduct TDS @ 1% of the total consideration amount of the property while paying the seller and deposit it with the Government Treasury. The penalty for not paying TDS on immovable property can be up to Rs. 1 lakh under Section 271H of the I T Act. To avoid penalty, you can pay the TDS, interest amount and late payment fee as soon as you receive a tax notice. You can consult with a CA or Tax Consultant in this connection.
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