Section 194IC - TDS on Payment under specified agreement - Income Tax - Ready Reckoner - Income Tax

Section 194-IC - TDS on Payment under specified agreement (Inserted by FA, 2017, w.e.f. 1-4-2017 ) Applicability Any person responsible for paying to a resident any sum by way of consideration, not being consideration in kind, under the agreement referred to in section 45(5A) , deduct an amount equal to 10% of such sum as income-tax thereon. Meaning of specified agreement under section 45(5A) Specified Agreement means A registered agreement in which a person owning land or building or both, agrees to allow another person to develop a real estate project on such land or building or both. The consideration of share, being land or building or both in such project, whether with or without payment or part of consideration in cash. Time of deduction : Tax is to be deducted: (i) at the time credit of such sum to the account of the payee or (ii) at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode. whichever is earlier. Rate of TDS : 10% of sum by way of consideration, not being consideration in kind. Non-applicability agreement Since tax deduction at source for specified agreement u/s 45(5A) is covered under section 45(5A) is covered under section 194-IC, the provisions of section 194-IA do not get attracted in the hands of the transferee in such case.