An individual enters into contract with a developer to purchase a apartment costing 2 crore of which 75 lakh is towards land & 1.25 crore superstructure. All along the individual was deducting tax u/s 194IA on total sum of 2 crore @ 1%.
With introduction of section 194M, does the scenario change. Is he liable to deduct tax u/s 194IA or 194M
Section 194IA TDS Rules Unchanged for Apartment Purchase; Section 194M Not Applicable to Property Transactions. An individual contracted to purchase an apartment for 2 crore, with 75 lakh allocated to land and 1.25 crore to the superstructure, and was deducting tax under section 194IA at 1% on the total amount. The query raised concerns whether the introduction of section 194M affects the tax deduction process. The response clarified that section 194IA remains applicable as it specifically addresses tax deduction at source (TDS) on immovable property transactions. (AI Summary)
TaxTMI 
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