Is there any type of tax of 1% is applicable on buying a multi-stories Flat of total cost 40 lakh that can be deducted by builder on financing bank.
Neha sharma
(-)
(1257 Points)
Replied 18 August 2013
Are you talking about TDS on Property ?
A new section 194IA has been recently inserted and has come into force from 1st June which states that at the time of buying any property for more than 50 Lakhs, TDS @ 1% is required to be deducted at the time of making the payment.
Satyendra
(Others)
(43 Points)
Replied 18 August 2013
Hi Neha ji,
First of all thank you for reply.
Actually, Recently I booked a Flat (Total Cost around 40 lakh including service tax and registry cost)
And my loan bank is asking for 1% tax /income tax to be deducted.
I want to understand, what it can be?
Is any tax of 1% in my case applicable?
Mihir
(Wealth Manager)
(5293 Points)
Replied 18 August 2013
Since the flat price is less than 50 lacs, there shall be no TDS.
But try to get in writing from the bank, on what basis 1% tax deduction.
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