Day: 1 June 2013

Now, you will have to deduct tax when you make the payment to the seller if the cost of the immovable property exceeds Rs 50 lakh. The Central Board of Direct Taxes has notified the new provision of tax deducted at source, or TDS, on immovable property exceeding Rs 50 Lakhs. What is the New Rule ? A new Section 194IA was introduced in Budget 2013-2014 / Finance Act 2013 which require the purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh to deduct TDS at the rate of 1% from the amount payable to a resident transferor.  From when it is Applicable ? This new Section 194IA is applicable from 01-June-2013  At what rate TDS needs to be deducted ? TDS needs to be deducted @ 1% , but it would go up to as high as 20% if the seller does not disclose his perma...