Tds on house peroperty when flat purchased from investors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2014 Dear All,

I have a query regarding TDS on purchase of Flat from investor, wherein the buyer will make payment to investor about 90% of consideration for assignment of flat rights & remaining 10% will be paid to the developer.
The Agreement will be made between Developer & Buyer for consideration above 50lakhs.
As per TDS provisions, TDS to be deducted at the time of payment, however the buyer has made payment to the investor.
Whether buyer should deduct TDS of both investor & developer ? or only developer?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 March 2014 you need to deduct TDS to both investor and developer...income tax doesn't differentiate seller on the basis of the functions performed by parties in development of the property.

you need to deduct tds on each of the payment to both the parties irrespective how what amount is being paid to each party once the overall consideration crosses Rs 50 lakhs

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