TDS on transfer of immovable property

[Dipjyoti Majumdar]

Friends & Seniors

Please refer to section 194IA on deduction of tax at source from payment on transfer of immovable property.

An agreement of sale is entered into between Ramesh and Suresh Builders Pvt Ltd for sale of a flat for Rs 60 lakhs. The agreement is not yet registered with the Registrar / Sub-Registrar of Assurances, Government of the State.

Meanwhile Ramesh has paid Rs 40 lakhs in two tranches as per agreement.

When will be the point of tax deduction at source. At the time of payment of Rs 40 lakhs or at the time of registration of the sale deed.

Regards

CA Dipjyoti Majumdar
Kolkata