- 194A provides for TDS on any sum credited by way of consideration for transfer of any immovable property
- 194A is not applicable on security deposit given by developer to land owner (Prestige Estates Projects Ltd)
- TDS is on transferee paying to Co-transferor > 50 lacs individually. So no TDS on payment to a Co-owner receiving below 50 lakhs (Bhikhabhai Patel & Vinod Soni cases)
- payment of 60 lacs to POA holder of jointly owned property – no TDS as individually consideration is only 30 lacs to each owners (Oxcia Enterprises)
- Once Tds is deducted, tax cannot be collected from deductee for reason that deducator failed to deposit (Yashpal Sahni case)
- TDS not applicable if 3 properties are purchased from same seller and consideration of each property is below 50 lakhs but aggregate is above (Shakti Builders & Developers)
- However since intention of introducing 194A was to have a reporting mechanism of transactions in the real estate sector and also to collect tax at the earliest point of time, other view are not free from doubt
