Threshold limit u/s 194IA for TDS not to be checked with the Amount mentioned in sale deed vis a vis individual share of each co-owner

Threshold limit u/s 194IA for TDS not to be checked with the Amount mentioned in sale deed vis a vis individual share of each co-owner

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Threshold limit u/s 194IA for TDS not to be checked with the Amount mentioned in sale deed vis a vis individual share of each co-owner

Where assessee purchased an immovable property alongwith three other members of family for Rs. 1.50 crores, in view of fact that share of each co-owner came to Rs. 37.50 lakhs which was under threshold limit prescribed by section 194-IA, assessee was not required to deduct tax at source while making payment in question
 
 
 
[2019] 101 taxmann.com 190 (Delhi – Trib.)
 
Vinod Soni
v.
Income-tax Officer, TDS-Ward, Faridabad
 
Section 194-IA of the Income-tax Act, 1961 – Deduction of tax at source – Compensation on transfer of certain immovable property other than agricultural land (Threshold limit) – Assessment year 2014-15
 
  Assessee along with three other members of family purchased an immovable property for Rs. 1.50 crores 
 
Assessee’s case was that every co-owner having equal share in property i.e. share of every co-owner came to Rs. 37.50 lakh which was under threshold limit as provided by section 194-IA and, thus, assessee was not required to deduct tax at source 
 
Assessing Officer opined that consideration for transfer of an immovable property was Rs. 1.50 crores i.e., more than Rs. Fifty lakhs and same was executed through a single sale deed and as such, provisions of section 194-IA were very much applicable
 
  Whether provisions of section 194-IA(2) are applicable only with reference to amount related to each transfer and not with reference to amount as per sale deed
 
 Held, yes
 
  Whether, since, in instant case, purchase consideration in respect of each transferee was only Rs. 37.50 lakh which was below threshold limit of Rs. 50 lakhs, provisions of section 194-IA were not applicable
 
  Held, yes
 
  Whether, therefore, impugned order passed by Assessing Officer was to be set aside 
 
 Held, yes
 
 [Para 5.2]
 
 [In favour of assessee]
 
 

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