TDS of one per cent will apply on sale of an immovable property valued at Rs 50 lakh and more, even if there are multiple buyers and sellers involved in the transaction. A clarification in this regard was provided by Finance Minister Nirmala Sitharaman in her Budget Speech amid cases of misinterpretation of tax provisions. The government on Tuesday said that one per cent TDS will be applicable for transfer of immovable property involving multiple sellers or buyers wherein the aggregate consideration is Rs 50 lakh or more. The finance minister mentioned the applicability of Tax Deduction at Source (TDS) in her 2024-25 Budget speech.
In the budget document, the government said that Section 194-IA of the Act provides for deduction of tax on payment of consideration for transfer of certain immovable property other than agricultural land. An amendment will be made in the section to clarify this. "It is proposed to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property," Finance Minister Nirmala Sitharaman said in her budget speech.
