TDS on property transfers turns on each co-transferee's share, not the total sale consideration, under section 194-IA.

Section 194-IA threshold is applied with reference to each transferee's individual share in the property, not the aggregate consideration stated in a single sale deed. Where the assessee's share fell below the statutory limit, no TDS deduction obligation arose on that amount. On that construction, the intimation under section 200A treating the assessee as an assessee in default for non-deduction of tax could not be sustained, and the consequential demand was unsustainable.

---

---

Issues: Whether the threshold under section 194-IA is to be applied with reference to the total consideration of the property or with reference to each co-transferee's share, and consequently whether the intimation under section 200A treating the assessee as in default for non-deduction of TDS was sustainable.

Analysis: The assessee's share in the property was below the statutory monetary threshold, though the total sale consideration of the property exceeded the threshold. The Tribunal followed its earlier view that section 194-IA applies to each transferee as an individual person and that the threshold must be tested with reference to the amount attributable to each transferee, not the aggregate value mentioned in a single sale deed. On that construction, the assessee was not liable to deduct tax at source on the amount attributable to his share, and the consequential demand raised through the intimation under section 200A could not be sustained.

Conclusion: The issue is decided in favour of the assessee. The demand and the order sustaining it were held unsustainable.

---