Tax deduction from payment on transfer of certain immovable properties (other than agriculture land)
Sec 194-IA applicable from 1st June 2013
Who is responsible for tax deduction -
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 rural agricultural land) is liable to deduct tax at source under section 194-IA.
Time of Deduction -
Tax shall be deducted at the time of payment or at the time of giving credit to the transferor, whichever is earlier.
Rate of tax Deduction -
Tax is deductible at the rate of 1%. However no tax is deductible where the consideration paid or payable is less than Rs. 50,00,000/-.