On 20.6.2025, Mr. Shyam, a resident, made three separate transactions for acquiring house property at Mumbai from Mr. Manoj for a consideration of…

Since the consideration and stamp duty value for transfer of house property in Mumbai both are not less than 50lakhs, Mr. Shyam, being the transferee, is required to deduct tax @1% under section 194-IA on 95 lakhs, being higher of stamp duty value and the amount of consideration for transfer of property, at the time of credit to the transferor account or payment, whichever is earlier. Mr. Shyam is not required to deduct tax as source under section 194-IA from the consideration of 49,50,000 paid to Mr. Chetan for transfer of urban plot, since the consideration and stamp duty value, both are less than 50lakhs. Mr. Shyam is also not required to deduct tax at source under section 194-IA for transfer of rural agricultural land, since the same is specifically excluded from the scope of immovable property for the purpose of tax deduction under section 194-IA.