TDS u/s 194LA in case of Payment in kind

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  1. If assessee A is developing on land of another assessee B and paying consideration in kind ( say Flat)
    then is A liable to deduct TDS u/s 194LA??? Assume consideration is more than 50Lacs.
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    The text of Section 194LA reads as follows:-

    Payment in kind would be considered as other mode and I think TDS would be required to be deducted in this case.

    The person making the gift in kind can either pay this from his own pocket or request the person receiving the gift to pay him the TDS amount.
  3. I think the rate is 1% of sale consideration
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    @avinash tiwari : 1% TDS if under Section 194IA

    TDS under Section 194LA is 10%
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