TDS applicability on transfer of tenancy rights

[Aliasgar Tambawala]

As per S/194 IA TDS @ 1% is to be deducted in respect of payment on transfer of certain immovable property other than Agricultural Land. Does immoveable property include 'Transfer of tenancy right' i.e. If the Incoming Tenant enters into transfer of tenancy and pays compensation to the Outgoing Tenant exceeding ₹ 50 lakh - Will TDS be applicalble as per S/194 IA of the Income tax Act, 1961?

AI Summary

TDS on transfer of tenancy rights: does tenancy constitute immovable property triggering Section 194-IA withholding obligations? Whether payment for transfer of tenancy rights qualifies as transfer of immovable property for Section 194-IA withholding is questioned; specifically whether an incoming tenant's compensation to an outgoing tenant exceeding the statutory threshold attracts TDS under that provision.