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Tds penalty/interest

Narendra Pandit (Others) (25 Points)

27 July 2015

Hello,

I purchased an apartment in Mar. 2012.

In FY 13-14, I paid 1716637 INR to the builder towards construction linked plan payment.

In FY 14-15, I paid 1428546 INR to the builder towards construction linked plan payment.

In FY 15-16, I have so far paid 714273 INR to the builder towards construction linked plan payment.

I have not paid any TDS to the IT department as per section 194IA which became effective in June 2013 due to lack of awareness.

Can somebody please tell me how much penalty and/or interest rate I owe to the IT department for the above mentioned payments?

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4 Replies

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 27 July 2015

If your total cost is above 5000000/- then you have to deduct 1% TDS from the payment of builder and deposit within 7 days from the end of month in which you have paid. In your case, you have to pay interest @ 1.50% pm from the month in which you have paid payment to builder. Rs. 200/- per day as you have not submitted Form 26QB till date or equal to TDS amount which is lower.

CA Chandra Prakash (9873059766 Increasing knowledge through sharing) (296 Points)
Replied 27 July 2015

There is no penalty in above case as sec. 194IA is applicable where the sale consideration for the property is upto 50 lakh or more. If total sales consideration decided in construction linked plan is more than 50 lakh then penalty for non dedution of tds is arised.so first provide the consideration price in ur query.

Narendra Pandit (Others) (25 Points)
Replied 27 July 2015

The total consideration price of the apartment is 1.06 cr. Interest @ 1.5 % over and above the 1% TDS or 1.5% total? Also, I did not understand what is tge