TDS on purchase of property

Yes as the section mentions that TDS wont be required if the amount is below 50 lakh. Since your amount is exact 50 lakh and not less than that you are required to deduct TDS.

Hi

Yes, TDS shall have to be deducted.

Hello,

Yes, TDS would be required to be deducted.

I hope that this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Dear Sir,

Here is my reply to your query:

As per the provisions of Income Tax Act, "Any person purchasing immovable property (other than rural agricultural land) of Rs. 50 lac or more is required to deduct tax @1% from the payment made to seller."

So in your case TDS will not be deducted as the purchase value for both the buyers is less than Rs. 50 lacs.

Thanks and Regards 

Divya Chugh 

Dear Sir,

Hope you are doing well !!

No TDS is required to be deducted if sale consideration is less than Rs 50 lakhs.

In your case, it is exact 50 lakh and not less than that, TDS shall have to be deducted.

Hi

As per section 194IA TDS need to deducted when Value of property exceed Rs.50 Lakhs, So here as value of property is exact50 lakhs then there is  need to deduct TDS

U r  required to deduct TDS on payment made to builder

Yes, your understanding is correct.

The tax is not required to be deducted if the individual's share in a purchase consideration to acquire an immovable property does not exceed INR50 lakh

Yes, there are cases in favor also. But it remains a litigative issue until a high court or supreme court judgement is pronounced.

For a safer side, we would advise TDS deduction.

Non-deduction could lead to litigation. Advisable to make TDS deduction on the payment.

Its just a Tribunal judgement and there are various other judgement in this line and it will only apply in its jurisdiction i.e. Delhi.

Also the section says "where the consideration for the transfer of an immovable property is less than fifty lakh rupees."

So one view can be that here if they wished to consider amount paid to each paid they would have used the word consideration paid to transferor for transfer of immovable property which is not the case so its better to deduct TDS.

Hi

yes there are case laws available but there is no harm  in deducting tds.

u just have to pay less to the builder to the extent of tds amount deposited 

in my view u should deduct the tds & then u don’t have to worry wether u have complied with the tds provision or not,

if u want further assistance then u can contact me

kindly provide the rating so that ur feedback can help me to improve

Hi Sir,

As of now the ITAT Delhi Order holds good. However, there is a substantial question of law here and this Order will be challenged in Delhi HC.

The Section 194-IA does not talk about individual share at all. It only says TDS is applicable if the consideration for the Property is above Rs. 50 Lakh. So, I would suggest you to exercise caution in this matter