Dear Sir / Madam,

I have purchased 2 Shops and 1 House above that Shops from builder.

All three properties have been purchased from one person.

Kindly guide me whether TDS has to be deducted in following Situations

1. One Single Agreement is made for all three properties which exceeds Rs.50,00,000/-

2. Seperate Agreements are made for each property. Cost of each Property individually is less than Rs.50 Lakhs but is purchased from one person only.

Thanks

Dear Himanshu ji,

First of all congratulation for buying of properties.

Now, as per section 194IA, Any person responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), is liable to deduct tax at source under section 194-IA.Where the transaction is less than Rs 50,00,000 /-, the liability to deduct tax at source will not be applicable.

 

-          your first query that if consideration of property more than Rs.50 Lacs than TDS will applicable.

-          If Property value less than 50 Lacs than no TDS Applicability here, its no matter whether you are buying from same person or different person.

Rate at which TDS shall be deducted :- Tax is deductible at the rate of 1% of the consideration payable to a resident transferor. If a valid PAN is not provided by the seller, the tax rate would go up to 20%.

Thanks

Rahul

Dear Sir,

My Question is that if I Buy three properties adjecent to each other of Rs.20,00,000/- each, Whether I should deduct TDS if one single agreement is made for all three properties.