Tds On Specified Agreement

A common development agreement is an agreement between the owner of an asset (for example. B, a building or a building) to allow a person to build a real estate project in that asset. In return, the owner receives a share and/or a cash payment. The joint development contract is an agreement between two persons, i.e.dem owner of the land or building, and another person authorized to build a real estate project, and in return, he must give a share to the owner or the cash payment must be made. For this payment, a challan-cum return, form sheet 26QC, must be used. In addition, the tenant must provide the lessor with a Form 16C, a TDS certificate, as proof of the tax paid. No tax account number (TAN) is required for booking. The tax is deducted in accordance with this section, either at the time of registration on the recipient`s account, or on the date or payment, depending on the previous date. To this end, a “payment” can be made in cash or by issuing a cheque or project of another mode. Section 194-IC was recently included in the 2017 budget and the aim was to include “common development agreements” in the scope.

Let us understand this section in detail: this section entrusts the responsibility of any person responsible for paying an amount in return to a resident and not to deduct income tax of 10% in kind, in accordance with a specific agreement provided for in section 45 (5A). If an individual/HUF (not subject to the u/s 44AB test) pays, the rent is necessary for the landlord in order to reduce the SDS according to section 194IB. For the 194-IB rental, it is necessary to file a challan declaration on Form 26QC. This Form 26QC must be submitted within 30 days of the end of the month of the TDS`s resignation. 194-IC. Notwithstanding the provisions of Section 194-I A, any person responsible for paying consideration to a resident, without paying benefits in kind in accordance with the agreement under Section 45 (section 5A), deducts 10% of the amount at the time of the recipient`s credit or at the time of payment in cash or by issuing a cheque or project or other mode, depending on the previous date. Years: Tax must be deducted from rent paid under any name for the rental of a property.