Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Tds on property where sale consideration exceeds 50lac

Save Share

This query is : Resolved

Rahul Anand (Querist)

30 June 2013 Hello experts, As per new rule of TDS for immovable property of 1% where sale consideration is above 50lacs, what does "Sale Consideration" value means? Is it a)Total Installments (Land + Construction + VAT + ST)
b) Basic cost i.e. Sqft area X price per sqFt

In my case i purchased an under construction property from a Mr.X who was the first buyer from Builder wherein the value of property on sale agreement(between me and Mr.X) was above 50lacs.
Please help me understand this.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 June 2013 TDS is to be deducted on sales consideration. Sales consideration means the amount which the owner/Seller of the property is charging from the buyer.
.
Purchasing Under construction property requires a brief discussion.
.
The person who is making registration of the property against the consideration will be treated as the seller. So, if Mr.X is making a sale deed in your favour you have to deduct TDS on A/c of MR. X as he is the payee.
.

Message likes : 1 times

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