Income Tax Act, 2025
Section 8: Subs. by Act 29 of 2006, s. 15, for clause (i) (w.e.f. 132006).
8. Subs. by Act 29 of 2006, s. 15, for clause (i) (w.e.f. 132006).
647
1[194-IA. Payment on transfer of certain immovable property other than agricultural land—(1)
Any person, being a transferee, responsible for paying (other than the person referred to in section
194LA) to a resident transferor 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 transferor 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.
(3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance
with the provisions of this section.
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.]
2[194-IB. Payment of rent by certain individuals or Hindu undivided family.—(1) Any person,
being an individual or a Hindu undivided family (other than those referred to in the second proviso to
section 194-I), responsible for paying to a resident any income by way of rent exceeding fifty thousand
rupees for a month or part of a month during the previous year, shall deduct an amount equal to five per
cent. of such income as income-tax thereon.
(2) The income-tax referred to in sub-section (1) shall be deducted on such income at the time of
credit of rent, for the last month of the previous year or the last month of tenancy, if the property is
vacated during the year, as the case may be, 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.
(3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance
with the provisions of this section.
(4) In a case where the tax is required to be deducted as per the provisions of section 206AA, such
deduction shall not exceed the amount of rent payable for the last month of the previous year or the last
month of the tenancy, as the case may be.
Explanation.—For the purposes of this section, “rent” means any payment, by whatever name called,
under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or
building or both.]
3[194-IC. Payment under specified agreement.—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.]
(w.e.f. 132006).
647
1[194-IA. Payment on transfer of certain immovable property other than agricultural land—
Any person, being a transferee, responsible for paying (other than the person referred to in section
194LA) to a resident transferor 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 transferor 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.
No deduction under sub-section
shall be made where the consideration for the transfer of an
immovable property is less than fifty lakh rupees.
The provisions of section 203A shall not apply to a person required to deduct tax in accordance
with the provisions of this section.
Explanation.—For the purposes of this section,—
“agricultural land” means agricultural land in India, not being a land situate in any area
referred to in items
and
of sub-clause
of clause
of section 2;
”immovable property” means any land (other than agricultural land) or any building or part of
a building.]
2[194-IB. Payment of rent by certain individuals or Hindu undivided family.—
Any person,
being an individual or a Hindu undivided family (other than those referred to in the second proviso to
section 194-I), responsible for paying to a resident any income by way of rent exceeding fifty thousand
rupees for a month or part of a month during the previous year, shall deduct an amount equal to five per
cent. of such income as income-tax thereon.
The income-tax referred to in sub-section
shall be deducted on such income at the time of
credit of rent, for the last month of the previous year or the last month of tenancy, if the property is
vacated during the year, as the case may be, 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.
The provisions of section 203A shall not apply to a person required to deduct tax in accordance
with the provisions of this section.
In a case where the tax is required to be deducted as per the provisions of section 206AA, such
deduction shall not exceed the amount of rent payable for the last month of the previous year or the last
month of the tenancy, as the case may be.
Explanation.—For the purposes of this section, “rent” means any payment, by whatever name called,
under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or
building or both.]
3[194-IC. Payment under specified agreement.—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
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.]