Tds on purchase of property

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This query is : Resolved

Krishna Kant (Querist)

02 July 2013 Dear Sir,
I am 65 yrs old retired Chief Engineer from UP Power Corporation Ltd Lucknow. My daughter wkg in US purchased a flat in Crossing Republik City Ghaziabad The basic sale price of flat is 48,07,992& service tax on it is 1,48,567 bringing the cost to Rs 49,56,559.The registry of the flat was done on 27th June 2013 for Rs 48,07,992/ only.My daughter paid Rs 5.0 lac on01/02/13 as booking amt followed by Rs 3.0lac & Rs 1.0 lac on 07/05/13& on 22/05/13 respectively.Bank paid Rs42,06,073/as the balance amt at the time of registry beside also bank paid the stamp charges.
Now should I attract TDS on this property.builder says that the total price of your flat is Rs51,48,559/ inclusive of Rs1.5 lac as parking charge,& Rs42000/as interest free maintenance security deposit.
My point is that since the registered value of flat is only rs48,07,992/ the TDS is not payable.Pl clarify,
Warm Regard
krishna kant

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

02 July 2013 Total consideration being paid for the transfer of immovable property by the buyer to the seller has to be taken into consideration. 42 +9=51 lac
.
It exceeds Rs 50 lac.
.

You have to deduct the amount from the payment being made to the builder.
.
If builder agrees for such deduction what else is needed ?
.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

02 July 2013 TDS on purchase of flat is going to another contoversy. Pl see an article in
https://taxguru.in/income-tax/section-194-ia-writeup.html

Courtesy to :- Mr. V. Swaminathan.

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