«

»

Oct
10

Tds Applicability On Joint Development Agreement

Share Button

3. Section 194IC talks about the specified agreements in which TDS must be withdrawn @ 10% In the current scenario, where different interest groups related to real estate really need to be strengthened by the government in different corners, encouraging property owners to enter into JDA agreements is a most expected and welcome step. While there are some unregulated concerns that I hope should be addressed by the government, the Department of Finance has considered various submissions, while proposing a noted-for-mentioned amendment that will help to dispel the long uncertainty and reduce litigation to a large extent. In accordance with the above-mentioned provisions, it is interpreted as a special agreement means a joint development agreement or a development agreement by which one party sells development rights to another party in exchange for a counterparty or a financial consideration in kind or both. However, no tax is deductible if the consideration is less than Rs 50 Lakh. In your case, if the total underperformance of the apartment is less than Rs 50 Lakh, you do not have to deduct TDS. However, if you have entered into a joint development contract with the seller, there is an obligation to deduct TDS @ 10% for the financial consideration (i.e. other than the type) during the payment. Under the joint development agreement, the landowner offers the developer the right to develop for the development of real estate. The landowner gives the developer general authority to obtain the necessary authorizations from different authorities necessary for construction projects. As a result, a new section 194-IC has also been inserted into a broad finance law for 2017 in order to deduct TDS on the monetary counterparty. This section terminates the provisions of Section 194-IA of the Act, which provides for the deduction of TDS @ 1% for the transfer of real estate if the consideration rs is greater than 50 Lakhs.

According to Section 194-IC, if, under a joint development agreement, a developer pays an amount to the owner of the land in addition to the share of the project, that developer must deduct TDS @ 10% of that payment. Under section 2(47) of the Income Tax Act 1961, the concept of transfer always includes the assignment or abandonment of an asset or interest or the creation of interests in an asset in any way, directly or indirectly, absolute or unconditional, voluntary or not, by an agreement (whether entered into in India or outside India). . . .

Share Button
Home About Case Studies Testimonials Publications Blog Client LoginReferLocations
© Copyright 2022 | All Rights Reserved | Dental Marketing and Website Design by Digimax Dental
Follow me