As per Sec 194 IA of Income Tax, TDS amount is not required to be withheld on transfer of Immovable property if higher of sale consideration/stamp duty value is less than 50 lacs. But what if property is acquired jointly? Limit of 50 lacs is for consideration paid for property OR stamp duty value exceeds 50 lacs OR each buyer pays more than 50 lacs OR each owner of property gets more than 50 lacs?
Well, the issue remains debatable !!
In 2018, in the case of Vinod Soni [ITA No. 2736/Del/2015] Delhi ITAT held that section 194-IA(1) is applicable on any person being a transferee, so section 194-IA(2) is also, obviously, applicable only w.r.t. the amount related to each transferee and not with reference to the amount as per sale deed.
However in 2019, Jodhpur ITAT took a contrary view. In the case of M/s Oxica Enterprises Pvt Ltd [ITA No.291/Jodh/2018] Jodhpur ITAT held that in case consideration for each transferor comes below the prescribed limit of Rs.50 lacs given by the statute, provisions of sec. 194-IA of the Act are not applicable.
There is no clarification from income tax on the said matter and recently Jodhpur ITAT took a different view on the said matter. In the case of Reetu Devi Nanecha, Bhilwara vs Ito Tds, Bhilwara [ITA 118/Jodh/2021], ITAT held that as the consideration paid by each of buyer is less than 50 lacs, therefore, the provisions of Section 194IA of the Act cannot be invoked.
Thus, till the time the income tax department issues clarification, the matter will remain debatable and litigative.
