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Finance Act 2013, Inserted a new section, ie Sec 194-IA, TDS on sale/purchase of
Immovable Property, As per Section 194-IA, Any person, being a transferee ( Buyer) ,
responsible for paying (other than the person referred to in section 194LA) to a
resident transferor (Seller) any sum by way of consideration for transfer of any
immovable property (other than agricultural land), shall, at the time of credit of such
sum to the account of the Seller or at the time of payment of such sum in cash or by
issue of a cheque or draft or by any other mode, whichever is earlier, deduct an
amount equal to one per cent of such sum as income-tax thereon.
where the consideration for the transfer of an immovable property is less than fifty
lakh rupees no TDS is to be Deducted.
provisions of section 203A shall not apply to a person required to deduct tax in
accordance with the provisions of this section.
Tax @ 1% should be deducted by the buyer of the property at the time of making payment
of sale consideration or installment. (Whether by Cash, Cheque, Draft or by any other
mode, whichever is earlier.)
Any sum so deducted under section 194 IA shall be required to be paid to the credit of the
Central Government within a period of seven days from the end of the month in which the
deduction is made .
Penalty /Interest on default of Payment : Interest under section 201 of Income Tax
Act,1961 will be payable if TDS is not paid within the date mentioned above and such
person who defaulted in deduction/payment of TDS shall be treated as Assessee In
Default.
If TDS has been deducted but not paid: In this case one and one-half percent (1.5%) for
every month or part of a month, on the amount of such TDS from the date on which such
TDS was deducted to the date of actual payment.
If TDS is not deducted: In this case one percent (1%) for every month or part of a month on
the amount of such tax from the date on which such TDS was deductible to the date on
which such TDS is deducted.
Within 2 kms.
Within 6 kms.
Exceeding 10,00,000
Within 8 kms.