Examine the applicability and determine the amount of tax deduction/ collection at source as per the Income-tax Act, 1961 for the A.Y. 2026-27 in…

(i) Section 194-IA requires deduction of tax @1% of consideration for transfer or stamp duty value, whichever is higher, by every transferee responsible for paying any sum as consideration for transfer of immovable property (land, other than agricultural land, or building or part of building) to a resident transferor.Tax is not required to be deducted at source where the total amount of consideration for the transfer of immovable property and the stamp duty value both are less than 50lakhs. Consideration for transfer of any immovable property includes, inter alia , club membership fee, car parking fee, maintenance fee, which are incidental to transfer of the immovable property.In the present case, since the consideration for transfer of flat by Mr. Jatin to ABC Ltd. is 53,40,000 (47lakhs +2,40,000, being - 10,000 x 12 x 2 + 3 lakhs + 1 lakh) which is not less than 50lakhs, Mr. Jatin is required to deduct tax @1% on 53,40,000, being higher of consideration and stamp duty value.Tax deductible by Mr. Jatin would be - 53,400. (ii) State Government is required to collect tax at source @ 2% u/s 206C(1C) on 7 crores, being the charges for lease of coal mine.Accordingly, TCS = 2% x 7 crores = 14,00,000Every person, being a seller, is required to collect at source @1% under section 206C (1) on sale of coal to a buyer. However, a public sector company is not covered within the definition of buyer.Accordingly, M/s XYZ Ltd. is not required to collect tax at source on sale of coal to M/s LMN, a PSU.However, since the turnover of M/s LMN, a PSU exceeds 10crores during the P.Y. 2024-25, it is required to deduct tax at source under section 194Q @0.1% of sum exceeding 50lakhs paid to M/s XYZ Ltd.Accordingly, TDS = 0.1% x 1.50 crores = 15,000.