- SECTION 194IA (TDS ON PURCHASE OF PROPERTY)
From 01.09.2019 onwards payments like Club Membership, Parking Fee, Maintenance Fee, Advance Fee, Electricity or Water Facility Fee etc need to be considered for the purpose of TDS u/s 194IA.
As per section 164IA TDS @ 1% is to be deducted on all Property Transactions which are above Rs. 50 Lakhs. This TDS is to be deducted on all types of Property Transactions irrespective of whether the property in consideration is a flat or a building or a vacant plot.
TDS is to be deducted irrespective of whether it is a Residential Property or Commercial or Industrial Property. TDS is to be deducted on all types of property transactions except Agricultural Land.
Now From 01.09.2019 onwards payments like Club Membership, Parking Fee, Maintenance Fee, Advance Fee, Electricity or Water Facility Fee etc need to be considered for the purpose of TDS u/s 194IA.
2. SECTION 194DA (TDS on Life insurance Maturity)
Any person who makes a payment to a resident Indian upon maturity of a life insurance policy will deduct taxes at source @ 5% w.e.f. 01.09.2019 under Section 194DA. Earlier rate was 1% which has been increased to 5% in Budget 2019.
Exception: if it is exempt under section 10(D) on income tax act then this section will not applicable
3. SECTION 194N (TDS on Cash withdrawal more than 1Crores)
From 1st September 2019 onwards, The payer will have to deduct TDS at the rate of 2% on the cash payments/withdrawals of more than Rs 1 crore in a financial year under Section 194N
4. SECTION 194M ( TDS on Contractual or Professional Payments by Individual &HUF)
Any individual/HUF paying any sum to a resident, for carrying out any work (including the supply of labour) under any contract or by way of fees for professional services rendered during the financial year, exceeding Rs 50,00,000 in a year will have to deduct TDS at 5%. In case the PAN of the deductee is not available, then TDS will be deducted at 20%.
5. SECTION 285BA (Reporting of Small Value Transactions to Income Tax Department)
Government may prescribe transaction below current threshold of Rs 50,000 for furnishing of information u/s 285BA with effect from 01.09.2019.
6. IF PAN NOT LINKED WITH ADHAAR TILL SEPTEMBER 2019 THEN GOVERNMENT WILL ISSUE NEW PAN CARD.