Tds on property amounting more than 50 lacs in delhi

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2013 Sir,

I am going to purchase a flat costing more than Rs. 50 L. Part payment of Rs. 20 L. made in the month of May, 2013 prior to new TDS rule. Can TDS be deducted at the time of full and final payment to be released in the month of July, 2013 on amount which has already paid in the month of May?

Another point, if the property is on joint name of seller then can TDS be deposited against one PAN of seller.

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2013 Urgent reply pls.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Here’s a clear explanation for your queries on TDS for property transactions above ₹50 lakhs in Delhi:

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### 1) **TDS on payments made before the introduction of new TDS rule**

* The new **Section 194-IA** (TDS on immovable property) became effective from **1st June 2013**.
* Since you made a **part payment of ₹20 lakhs in May 2013** (before 1st June 2013), **no TDS was required on that payment**.
* However, the **TDS is applicable on the amount paid or credited on or after 1st June 2013**.
* Therefore, **you should deduct TDS on the final payment made in July 2013**, which would be the remaining ₹30 lakhs (assuming total is ₹50 lakhs).
* You **cannot deduct TDS retrospectively on the amount paid before 1st June 2013**.

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### 2) **Can TDS be deposited against one PAN if property is in joint names?**

* When the **property is jointly owned and registered in the names of more than one seller**, TDS must be deducted **proportionately in the share of each owner**.
* The **TDS must be deposited against the PAN of each seller based on their share** in the property sale.
* **Deducting and depositing TDS against only one PAN for all joint owners is not correct**.
* You should get the PAN details of all joint owners and deposit TDS separately for each.

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### Summary:

| Query | Answer |
| ------------------------------------------ | ------------------------------------------------------------------- |
| TDS on amount paid before 1 June 2013 | No TDS applicable on amount paid before 1 June 2013 |
| TDS on amount paid after 1 June 2013 | Yes, deduct TDS @1% on amount paid or credited on/after 1 June 2013 |
| TDS deposit for property with joint owners | Deposit TDS proportionately against each owner's PAN |

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If you need, I can help you with the TDS calculation or the process for depositing TDS under Section 194-IA. Let me know!

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