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TDS on Sale/Purchase of Immovable properties u/s 194IA

Jun 05 2013   |   By: admin   |   0   |   Posted in Income Tax | Tagged , ,

the finance minister has told that 1% tax will be deducted at source (TDS) on immovable property. The cut-off value for such a transfer of property is above Rs.50 lakh. So if you have a house or a plot of land, which is valued above Rs.50 lakh at the time of sale, then you will have to pay a TDS of 1% while selling it. Agricultural land is exempt from this. The proposed TDS provision is to be applied to transfer of immovable property, wherein the ‘immovable property’ means:
  • Any land (other than agricultural land) or
  • Any building; or
  • Part of a building.
As per Finance Bill 2013, the proposed amendment will be applicable from 1 June 2013. Similar provisions were also proposed by the Finance Bill, 2012; but due to much hue and cry, the said provisions were not incorporated when the final Bill was passed by the parliament. It is worthwhile to see how the current TDS provision which are applicable to sale of immovable property is different than proposed vide Finance Bill, 2012. In Finance Bill 2012 TDS was proposed to be applicable only if - Continue reading