Any person (buyer) who is liable to make payment while purchasing immovable property should deduct TDS mentioned u/s 194 – IA. If amount of ‘consideration’ payable for transfer of immovable property is Rs. 50 lakhs or more TDS will be deducted u/s 194 – IA.
The term ‘consideration’ is currently not described for purposes of section 194 – IA. There are other different types of payments made while purchasing of immovable property and the buyer has to make such payments to the seller under the same or different agreement. An explanation proposed to be included in Section 194 – IA to provide that the term ‘consideration for immovable property’ will include all incidental charges of club membership fee, car parking fee, electricity and water facility fees, maintenance fee, advance fee etc.
This amendment will take effect from 1st September, 2019