Save Rs 499. Go Ad-Free with CAclubindia Pro for 2 Full Years. Subscribe Now!

Have not deposited TDS on under construction property

Others 742 views 3 replies

Vimal Sachdeva

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.

Replies (3)

sabyasachi mukherjee

Profession Business

28207 Points Posted on 15 September 2023

No provision is there that booking of property entails paying tds

Suresh Kumar

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

Pre kaps

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!