should tds @1% be deducted in case of advance paid for land immoveable property during Fin Year 2017-18; or should the TDS u/s 194IA be deposited with the revenue on the date when The sale / conveyance deed for transfer of property is registered in the jurisdictional court which will be in Financial year 2018-19.
at the time of advance payment there is some chance of the deed of sale not maturing and the advance being refunded.
Clarification on TDS Deduction Timing Under Section 194IA: Deduct 1% at Advance Payment for Property Over 50 Lakhs. A query was raised regarding the timing of Tax Deducted at Source (TDS) under Section 194IA for an advance payment on immovable property. The question was whether TDS at 1% should be deducted during the financial year 2017-18 when the advance is paid, or upon registration of the sale deed in the financial year 2018-19. The concern was due to the possibility of the sale not maturing and the advance being refunded. The response clarified that TDS at 1% should be deducted at the time of advance payment if the property's value exceeds 50 lakhs. (AI Summary)
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