Section 194ia

A person who is purchasing any immovable property other than agricultural land from a resident is required to deduct tds 1 from the amount payable in this behalf.

Section 194ia. Two of the important sub sections under this section are section 194ia and section 194ib. After section 194 i of the income tax act the following section shall be inserted with effect from the 1st day of june 2013 namely 194 ia. This section covers residential property commercial property as well as land.

Section 194ia of income tax act requires a buyer to deduct tax at the rate of 1 of the sale consideration if the value of the transaction is rs 50 lakhs or more. Tds on payment on transfer of immovable property not being an agricultural land from 1st june 2013 through section 194ia of income tax act a provision was rolled out by mr. Section 194 ia as inserted with effect from 1 6 2013 provides that any person being a transferee responsible for paying other than the person referred to in section 194la to a resident transferor any sum by way of consideration for transfer of any immovable property other than agricultural land shall deduct an amount equal to one per cent of such sum as income tax at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by.

As we all are aware that now the format of form 26as has been. Insertion of new section 194 ia. Section 194ia deals with tds on transfer of an immovable property.

Section 194i of the income tax covers tds on rent. Section 194ia payment on transfer of certain immovable property other than agricultural land. The rent under this section broadly includes house rent machine rent building rent office rent furniture rent etc.

This article discusses the provisions of section 194ia as per income tax act 1961 and throws light on scope and limitations of section 194ia. Tds is not required to be deducted if the property value is less than rs. If you have booked such property and the builder has charged service tax gst this means till this payment the property is not an immovable property.

As per section 194ia of the income tax act buyer is required to deduct tax at source 1 of the amount paid credited to the seller. Section 194ia is inserted by finance act 2013 and is applicable from 01 st of june 2013. P chidambaram to deduct 1 tds on sale of the property to a resident indian.