TDS On Sale of Immovable Property under Section 194IA
27 June 2015
WHEN AND HOW TAX IS DEDUCTIBLE FROM PAYMENT ON TRANSFER OF CERTAIN IMMOVABLE PROPERTY SECTION 194-IA
Section 194-IA is applicable with effect from June 1, 2013.
Who is responsible for tax deduction? Any person (being a transferee) responsible for paying (other than the person referred to in section 194LA) to a resident transfer any sum by way of consideration for transfer of any immovable property (other than agricultural land area in India), is liable to deduct tax at source under section 194-IA.
Time of deduction-Tax shall be deducted at the time of payment or at the time of giving credit to the transferor, whichever is earlier.
Rate of tax deduction –This is deductible at the rate of 1 per cent. However, no tax is deductible where the consideration paid payable is less than RS. 50,00,000.
A person deducting tax u/s 194 IA is not liable to obtain a TAN.