Clause 42 - Insertion of new section194-IA-Payment on transfer of certain immovable property other than agricultural land - Finance Bill, 2013

Insertion of new section 194-IA. 42. After section 194-I of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2013, namely: Payment on transfer of certain immovable property other than agricultural land 194-IA. (1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transfer or any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transfer or or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent. of such sum as income-tax thereon. (2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees. Explanation. For the purposes of this section, (a) agricultural land means agricultural land in India, not being a land situate in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2; (b) immovable property means any land (other than agricultural land) or any building or part of a building. .