Really appreciate your help in resolving all the queries of the viewers.
This is regarding the 1% TDS which needs to be deducted as per the Finance Bill 2013 mentioning that purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.
I tried various sources and blogs and each one has their own opinion but I am not sure which one is correct. The more I go through different blogs, I end up being more confused. I am mentioning my query in detail and hope to receive a response from you.
Is 1% TDS applicable to properties where the payments made to the builder on or after 1st June 2013 are more than 50 Lakhs or does the TDS needs to be deducted for payments made for the property after 1st June 2013 considering the total value of the property.
For example: I have bought a in-construction house for 80 Lakhs in 2012 and have paid 50 Lakhs to the builder before 1st June 2013 and paid the remaining 30 Lakhs after 1st June 2013. Now as I am paying only 30 lakhs after 1st June 2013 can I avoid paying 1% TDS as it is less than 50 Lakhs? or Do I need to pay 1% TDS on 30 Lakhs paid to the builder after 1st June 2013?
CAclubindia
