Section 194-IC TDS on Payment under Development agreement

TDS on Payment under Development agreement

Section: 194-IC.

Payer: Any Person

Payee: Any Resident Person

Nature of Payment: Consideration, not being consideration in kind, under the agreement referred to in section 45(5A).

TDS Rate: 10%

Timing of Deduction: 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.

Note: 

• Sec 45(5A)- Specified agreement means a registered agreement in which a person owning land or building or both, agrees to allow another person to develop a real estate project on such land or building or both.
• Consideration in this case is a share, being land or building or both in such project ; part of the consideration may also be in cash.

source - Income tax india

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