New 1% tax
Ajey
(Querist) 27 June 2013
This query is : Resolved
The Finance Act 2013 has introduced under its ambit, section 194-IA, with effect from 1st June'2013,
under which 1% Tax is to be deducted (TDS) on the payment of consideration for immovable property (other than an agricultural land) if the consideration value for such a transfer is Rupees Fifty Lakhs or more. my query is:
1. who has to pay this Tax seller or buyer?,
2. Does it apply if a) purchasers are joint applicants i.e more than one owner; b) payment is borrowed from Bank as loan that is repaid from already taxed monthly salary, and
3. purchase date is before the date from which new tax is implementable.
Anirudh
(Expert) 27 June 2013
Your profile states that you are an Editor. Before your query can be answered, can you please indicate Editor of what?
Ajey
(Querist) 27 June 2013
I edit a Magazine that deals with economic Issues. But the query is not for any publishing purposes. It is personal as the people have varied opinion on it.
Rajendra K Goyal
(Expert) 27 June 2013
1. TDS is deducted from the payment made and certificate issued thereof. The receiver of the payment would show this in his return as tax paid. i.e. TDS is to be deducted from seller and would be deposited by buyer.
2. The price of property is mentioned as above 50 lacs, purchaser may be singal or joint.
3. The loan is for property (irrespective of the fact whether it is replayed from taxed or non taxed source)and if the value of the property exceeds 50 lacs TDS is to be deducted and deposited.
4. Purchase date may be before, if payment is made after the date i.e. 01.06.2013 TDS is to be deducted.
Ajey
(Querist) 27 June 2013
Thank you very much Mr. RK Goyal. please do clarify on one more point.
will the TDS be deducted on entire amount including the part payment made before 01.06.2013 or is it applicable to the amount paid after the date 01.06.2013.
thanks once again.
Rajendra K Goyal
(Expert) 27 June 2013
Unable to get some reference, contact your CA better, but on the basis of available material it should be on the payment made after 01.06.2013( paid in installments also.)
Raj Kumar Makkad
(Expert) 27 June 2013
You have rightly been advised by Mr. goyal to which I also do endorse.
Ajey
(Querist) 27 June 2013
means it is applicable on the payment made after 01.06.2013( paid in instalments also.)
Raj Kumar Makkad
(Expert) 30 June 2013
Yes. It is applicable even if paid in installments after 01.06.2013.
