Examine the applicability of provisions of tax deducted at source/tax collected at source and calculate the amount of TDS/TCS in the following…
CA Final · Direct Tax Laws and International Taxation · PYQS · January 2026
Examine the applicability of provisions of tax deducted at source/tax collected at source and calculate the amount of TDS/TCS in the following independent cases applicable for the relevant period of financial year 2024-25 (A.Y. 2025-26): (i) Mr. Rohan sold his Urban Agriculture Land to Mr. Sohan for a consideration of 49 Lakh. The Stamp Duty Value on the date of sale (transfer) i.e. 01.08.2024 is 51 Lakh. Both Mr. Rohan and Mr. Sohan are Resident Indians. The land sold by Mr. Rohan is a Capital Asset in term of section 2(14) of Income-tax Act.
Suggested Answer and Working Notes:
(i) Since the stamp duty value of urban agricultural land exceeds 50lakhs, Mr. Sohan is required to deduct tax at source under section 194-IA @1% on 51 lakhs, being the higher of consideration of 49lakhs and stamp duty value of 51lakhs on 01.08.2024 on purchase of urban agricultural land from Rohan. Accordingly, tax deduction at source is 51,000.
Topics: Deduction, Collection and Recovery of Tax
Related Questions in this Topic
- Explain the applicability of TDS/ TCS provisions in the following independent cases and also compute the amount of TDS/T...
- (i) ABC Bank, accepted a Fixed Deposit (FD) for a sum of 20 lakhs in the name of Registrar General of the Court and issu...
- Mr. Ramesh has deposited money under Capital Gain Accounts Scheme, 1988 during the FY 24-25 with State Bank of India. Mr...
- PQR Ltd. has paid - 2,70,000 to Mr. A for Professional Services rendered by Mr. A. The agreement between PQR Ltd. and Mr...
- RK Garg & Company, a Partnership firm has paid Interest amounting - 1,20,000 and - 20,000 to its partners Ramesh Kumar G...