TDS on property related query

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the rules around Tax Deducted at Source (TDS) for property transactions. It addresses a scenario where a buyer has made advance payments and signed a sale agreement before paying the full amount. The consensus is that TDS can be deducted and paid on the full property value, even if payments are staggered, with specific deadlines for different payment periods.

A Kar

A Kar (Querist)
Follow

05 September 2022 Hello,

Let us take an example of a flat being sold for a sum of ₹. 6000000
Say I have booked a flat on 8.8.2022 by paying ₹1 lakh

I have paid ₹ 1100000 on 1.9.22 within 1 month of booking.

The registration of sale agreement was done on 4.9.22 within one month of booking, for an agreement value of 6000000, with the clause that the remaining amount of 48 lakh has to be paid to the seller within 30 days.

Now builder is asking for full TDS payment in advance.

My questions:
I have paid only 12 lakhs till now. So I should deposit TDS of ₹ 12000. Can I deposit TDS on the full amount right now on the premise that some day in future in the next 30 days I will pay the remaining amount?

Also can the registration of sale agreement be considered as the transaction date for arriving at TDS payment date for the full amount of 60 lakh, though only 20% of the full sum has been actually paid to the seller?

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

05 September 2022 Yes, you can deduct full amount of TDS from your installment and pay it to treasury at one go.

Message likes : 1 times

A Kar

A Kar (Querist)
Follow

05 September 2022 Thanks for your reply. I have two follow up questions.

1. Am I right to assume that the date of entire payment will be considered as the agreement registration date?

2. What happens to the 12 lakh paid before the registration date? Can I club the entire amount of 60 lakh in 1 entry, including the 12 lakh? Or for the 12 lakhs do I have to deposit separately for 1 lakh and 11 lakh as their payment dates are before tha registration date?

Thanks.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

06 September 2022 For advance paid in August pay TDS by this month, for all other amount i.e. 59 L paid in September, you can pay in single stroke.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now