TDS ON TRANSFER OF IMMOVABLE PROPERTY

[KERAGODEGOPALARAO ANANTHARAO]

WHAT IS MONETARY LIMIT FOR NOT DEDUCTING TAX ON TRANSFER OF IMMOVABLE PROPERTY

IS IT 5000000 OR 3000000

[Sadanand Bulbule]

Refer the followiing of the Income Tax Act, 1961:

194-IA. Payment on transfer of certain immovable property other than agricultural land.-

(1) 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, 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 issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum or the stamp duty value of such property, whichever is higher, as income-tax thereon.

(2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an mmovable property and the stamp duty value of such property, are both, less than fifty lakh rupees.

AI Summary

TDS under Section 194-IA applies on property transfers above ₹50 lakh, not ₹30 lakh or less Tax deduction at source (TDS) under Section 194-IA of the Income Tax Act, 1961, applies to the transfer of immovable property other than agricultural land. The transferee must deduct 1% TDS on the consideration amount or the stamp duty value, whichever is higher, at the time of payment or credit. However, no TDS deduction is required if both the consideration and the stamp duty value are below fifty lakh rupees. Therefore, the monetary limit for TDS deduction is fifty lakh rupees, not thirty lakh or any other amount.