TDS U/S 194-IA

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    Dear members

    one of the assessee has given an advance of Rs. 25lakhs in FY 2012-13 and Rs. 25lakhs in FY 2013-14 for the same immovable property (other than agricultural land). Thus the total amount of advance becomes Rs.50lakhs.

    My question is whether TDS is required to be deducted in the FY 2013-14 or not ? if yes ,why ?

    Thanks in advance
  2. Parul_Gupta

    Parul_Gupta Active Member

    TDS on Property is levied at the time of payment.

    Therefore, TDS is to be deducted on all payments made on or after 1st July 2013.

    If you have made any payment after 1st July 2013 - you'll have to deduct TDS on Property irrespective of the date of transfer of property.

    For the purpose of Section 194IA - the date of payment is important and the date of transfer of property is not relevant.


    Dear Ma'am

    date of payment is in Dec'2013 of Rs.25,00,000.00
    as the total of payment in FY 2013-14 is less than Rs.50,00,000.00 , for calculating the threshold limit U/s194-IA the payment of Rs.25,00,000.00 made during Fy2012-13 for the same immovable property will be considered or not ?
    If included TDS may be required to be deducted ?

    Property is not yet transferred , only advance payment is made.
  4. Parul_Gupta

    Parul_Gupta Active Member

    Please note that the limit of Rs. 50 Lakhs is not per annum but per property.

    Even if the payment is made in EMI's and the total payment in an year is less than 50 Lakhs but total purchase value is more than 50 Lakhs - in that case as well - TDS is required to be deducted.
    SHUBHAMJAINKANK likes this.


    Thank You so much ma'am.
  6. Naveen2014

    Naveen2014 New Member

    Dear Madam,

    I have bought a property with value above 50 lacs, and I have paid the TDS amount. I'm a salaried person and the benefit of this TDS was not included by my employer and the taxable income includes the TDS amount u/s 1941A .
    I was wondering, can I claim the TDS amount as deduction under my total taxable income. If yes under which header do I enter the TDS details in ITR1 downloaded from the Income Tax website, because I can see only TDS1 & TDS2 in the ITR excel sheet.
  7. gaurav_kumar

    gaurav_kumar Well-Known Member


    The person who has earned the income will pay tax on such income and will take the benefit of TDS.

    In the case mentioned by you, it is the seller who has earned the income and will pay tax thereon. The seller can take the benefit of TDS.
  8. Naveen2014

    Naveen2014 New Member

    Thanks a Lot Sir
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