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As per section 194ia “any person, being a transferee…” is liable to deduct tax at source. Section 194ia of the income tax act imposes an obligation on buyers of immovable property to deduct tax deducted at source (tds) at 1% when the sale. When any loan availed from bank, the bank can’t be said to be transferee even if it is.
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Section 194ia of the income tax act, 1961 applies when a resident sells immovable property (land/building, excluding agricultural land) for ₹50 lakh or more. Section 194ia of the income tax act, 1961, is a crucial provision mandating tax deducted at source (tds) on the sale of certain immovable properties.
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