TDS on Sale of Immovable Properties – Section 194IA

• August 1, 2020
• CA Chandan Agarwal's Office

Applicability, rate of tax & Tome of Deduction for TDS under Section 194IA on Sale of Immovable Properties

-Any transferee responsible for paying any sum of consideration to a resident transferor on transfer of immovable property (other than agricultural land)

-Need to deduct TDS on such sum.

-Rate of Tax – 1%

-TDS is need to be deducted at the

Earlier of the Following

(i) At the time of credit of such sum to the account of the transferor.

OR

(ii) At the time of payment through cash or by cheque or draft or by any other mode.

Threshold limit 

• TDS needs to be deducted only when the Consideration Money > Rs. 50 Lakhs

Read more on: https://taxguru.in/income-tax/tds-sale-immovable-properties-section-194ia.html