Have not deposited TDS on under construction property

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1 Points Posted on 14 September 2023

I booked an under-construction flat in February 2022. Total cost of flat including GST is 1.14 Cr. I paid the 10L in February 2022, 10L in March 2022 and 12L in May 2022. I paid 40L in September 2023. I was not aware of TDS law and did not deposit/deduct any TDS so far. 

Please guide me on the next steps on this. 

Should I submit a challan for each instalment or one consolidated challan ? Will there be penalties involved ?

I spoke to builder and he said TDS 1% would be shown during last installment. 

 

 

 

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On 14 September 2023 at 21:36 Report
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Quick Summary
This discussion addresses a buyer who failed to deduct and deposit TDS on payments made for an under-construction property. The buyer is seeking guidance on the correct procedure, including whether to file individual challans for each instalment or a consolidated one, and the potential for penalties. Advice suggests that TDS should have been deducted at the time of payment, with a 1% interest penalty for delays, and that separate challans (26QB) are required for each payment.

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Profession
28271 Points Posted on 15 September 2023
No provision is there that booking of property entails paying tds
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On 15 September 2023 at 08:18
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Account
408 Points Posted on 24 September 2023

You have to deduct and pay 1% TDS at the time of payment made to builder otherwise 1% interest per month applicable. Separate challans (26QB) for each payment has to be filed.

For more details- https://incometaxindia.gov.in/Charts%20%20Tables/TDS%20Purchase%20of%20Immovable%20property.htm

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On 24 September 2023 at 21:55
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2 Points Posted on 26 December 2023

Thank you for the insight, Suresh. Is there any way of deducting the Previous and Current installment TDS in the same payment/ challan?

For example-1st Installment paid in Sep-23 was 10Lac and 2nd paid on 25/Dec/23 is 10Lac. Can I merge the two installments of 10+10=20Lac for deducting the previous and current TDS?

Please guide, thank you!

 

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On 26 December 2023 at 11:51

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