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Informative

Real Estate Firm’s EDC Payments to HUDA is of Contractual Nature, Liable to TDS u/194(c): ITAT

Update / Judgement Date

27 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income TaxRERA & Property Act

The ITAT has ruled that a "real estate firm's EDC payments to HUDA" are "of a contractual nature" and are "liable to TDS under Section 194C." The tribunal's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can add a tax to a company's account without a valid reason.