Need help to understand tds for under construction apartment

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Edsel Correya (Querist)

13 May 2017 Hi ,

Recently I brought an under construction apartment. The contruction is supposed to complete in Dec 2017 which is when the registration will happen.
I also came to know about the TDS needs to be paid for property > 50 L and mine qualifies for the same.
I had paid my previous installments ( bank to builder) without deducting the TDS ( 1%) . In this regard, will it suffice if I deduct the entire TDS at the time of the registration? Please help

Regards,
Edsel

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)

13 May 2017 Hi,

Yes you can deduct entire TDS at the time of registration

But as per provisions of income tax act TDS is required to be deducted at the time of payment of when expense book whichever is earlier, in given case TDS is also required to be deducted at the time of part payment, you can also deduct that later on but interest of 1% at amount of TDS not deducted earlier is also required to be deposited.

Edsel Correya

Edsel Correya (Querist)

18 June 2017 Thank you very much sir.
Really sorry for the delayed response. Can you clarify a bit on the expense book part? I am not sure I understood it clearly.

-Edsel

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)

19 June 2017 Expense incurred before completion of construction till construction is completed should be capitalized and forms part of cost of asset/apartment.

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