Amendment of section 194-IA.
45. In section 194-IA of the Income-tax Act, in the Explanation, after clause (a), the following clause shall be inserted with effect from the 1st day of September, 2019,––
‘(aa) “consideration for immovable property” shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property;’.
Note:
While Passing the bill in the Loksabha as on 18-7-2019, the following amendments were made:
Clause 45
Amendment made:
Page 18, line 13, for “consideration for immovable property”, substitute
“consideration for transfer of any immovable property”. (17)
Thus, the amended provision will be:
45. In section 194-IA of the Income-tax Act, in the Explanation, after clause (a), the following clause shall be inserted with effect from the 1st day of September, 2019,––
‘(aa) “consideration for transfer of any immovable property” shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property;’.
Notes on Clauses:
Clause 45 of the Bill seeks to amend section 194-IA of the Income-tax Act relating to payment on transfer of certain immovable property other than agricultural land.
Sub-section (1) of the said section provides for tax deduction at source at the rate of one per cent. on the amount of consideration paid for transfer of immovable property. Sub-section (2) provides that the tax deduction at source shall not be applicable where the amount of consideration does not exceed fifty lakh rupees.
It is proposed to amend the Explanation to the said section to clarify the expression “consideration for immovable property” to include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property.
This amendment will take effect from 1st September, 2019.
