1) Who is responsible to deduct tax under section 194IC of Income Tax Act, 1961?
Any person responsible for paying to a resident any sum by way of consideration under the specified agreement under section 45(5A) i.e. under the Joint Development Agreement, shall deduct tax at source.
2) What is meant by the Joint Development Agreement?
Joint Development Agreement is an agreement between two people i.e. the owner of the land or building and another person who is given the permission to build a real estate project and in return, he or she must give a share to the owner or the payment in cash must be done.
3) Rate of TDS under Section 194IC
Given below is the rate of tax that must be deducted under the section 194IC- 10 percent (7.5% w.e.f. 14.05.2020 to 31.03.2021) if the receiver has the PAN 20 percent, if there is no PAN of the receiver.
4) Under what circumstances TDS u/s 194IC is not deductible?
Tax deduction at source shall not be made in respect of that part of consideration which is in kind under the specified agreement.
5) When to Deduct TDS under Section 194IC?
Tax shall be deducted under this section, either at the time of credit to the account of the payee or at the time or payment thereof, whichever is earlier. For this purpose, “payment” can be in cash or by issue of a cheque or draft of by any other mode.
194-IC. Notwithstanding anything contained in section 194-IA, 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 sub-section (5A) of section 45, shall at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax thereon
(Republished with amendments)
|192||Section 192 TDS on Salary- Analysis|
|192A||Section 192A | TDS on Payment of Accumulated balance due to an Employee|
|193||Section 193 TDS from Interest on Securities – Analysis|
|194||Section 194 TDS on payment of dividend|
|194A||Section 194A TDS on Interest (other than Interest on Securities)|
|194B||Section 194B TDS on winnings from Lottery, Game Shows & Puzzle etc|
|194BB||Section 194BB TDS on Winning from Horse Races|
|194C||Section 194C TDS on Payment to Contractor|
|194D||Section 194D TDS on Insurance Commission- Analysis|
|194DA||Section 194DA TDS on Payment in respect of Life Insurance Policy|
|194E||Section 194E TDS on Payments to Non-Resident Sportsmen or Sports Association|
|194EE||Section 194EE TDS on Payments in respect of Deposit under NSS|
|194F||Section 194F TDS on Payments on account of repurchase of units by Mutual Fund or UTI|
|194G||Section 194G TDS on Commission on Sale of Lottery Tickets- Analysis|
|194H||Section 194H TDS on Commission & Brokerage- Analysis|
|194I||Section 194I TDS on Rent – Analysis|
|194-IA||Section 194IA TDS on Purchase of Immovable Property|
|194-IB||Section 194IB TDS on Rent of Property|
|194-IC||Section 194IC TDS on Payment Made Under Specified Agreement|
|194J||Section 194J TDS on Professional or Technical Fees|
|194K||Section 194K TDS on Income In Respect of Units of Mutual Fund|
|194-LA||Section 194LA TDS on Payments of Compensation on Acquisition of certain Immovable Property|
|194-LB||Section 194LB TDS on Income by way of Interest from Infrastructure Debt Fund|
|194-LBA||Section 194LBA TDS on Certain Income from Units of a Business Trust|
|194-LBB||Section 194LBB TDS on Income in Respect of Units of Investment Fund|
|194-LBC||Section 194LBC TDS on Income in Respect of Investment in Securitization Trust|
|194-LC||Section 194LC | TDS on Interest Income from Indian Company or Business trust|
|194-LD||Section 194LD TDS on Interest Income on certain Bonds/Government Securities|
|194M||Section 194M TDS on payments of certain Sums by Individual & HUF|
|194N||Section 194N TDS on cash withdrawal from banks/post offices|
|194O||Section 194O TDS on E-commerce Operator- Analysis|
|194P||Section 194P Deduction of tax in case of specified senior citizen|
|194Q||Section 194Q Deduction of tax at source on payment of certain sum for purchase of goods|
|195||Section 195 TDS on Non-Resident Payments|
|195A||Section 195A Income Payable ‘Net of Tax’|
|196B||Section 196B TDS on long term capital gains from units referred to in section 115AB|
|196C||Section 196C TDS on Income from foreign currency bonds or GDRs|
|196D||Section 196D TDS on Income of foreign institutional investors from securities|
|197||Section 197 Certificate For TDS Deduction at Lower Rate|
|197A||Section 197A – No TDS Deduction – Form 15G & Form 15H|
|198||Section 198 Tax Deducted at Source shall be deemed to be income received|
|200 (1) & (2)||Section 200(1) & (2) Time Limit for Deposit of Tax Deducted at Source|
|200 (3)||Section 200(3) Forms & Time Limit for Submitting Quarterly TDS Returns|
|203||Section 203 TDS Certificate|
|200A||Section 200A Processing of Statements of Tax Deducted at Source|
|201||Section 201 Consequences of Non-Compliance to TDS|
|203A||Section 203A Tax Deduction And Collection Account Number|
|206AA||Section 206AA Mandatory Requirement of Furnishing PAN-TDS|
|Section 206AB & 206CCA Higher Rate of TDS/TCS in Case of Non-Filers of Return|
|206C||Section 206C Tax Collection at Source (TCS)|
|206CC||Section 206CC Mandatory Requirement of Furnishing PAN|
|40(a)(i)||Disallowance for Non deduction of Tax at Source|