I understand that with effect from 2013, there is the responsibility for the transferee(purchaser) to withhold the TDS of 1% if the property consideration price immovable property is more than and equal to 50 lakhs.
My question is what the defintion of '' consideration proce'' does it mean that the payment maid to the seller or the market value(circle rate) as determined by the govt registration office for the purpose of determining registration fees or stamp duty .
case-1: if MV is higher than 50 lakhs but the payment to the owner is less than 50 lakhs
case -2: if MV is lower than 50 lakhs but the payment to the owner is higher than 50 lakhs
Actually I am not intending to know the which sections of IT act call for such TDS deduction but I really want to know the interpretations. I have already gone through the 2013 finance bill but unable to comprehend the above points, kindly enlighten me.
This Matter is dealth with in Income TAX Section 194 IA. This is not Application to Rural Agriculture Land trasfer, Compulsory acquision by any Law & Consideration is less than Rs. 50 Lakhs. Rate of TDS is @ 1% at the time of Account credit or payment in cash or cheque or any other mode.