Sec 194ia tds @1% on purchase of property over rs 50 lakh

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Hi All,

I have some specific queries on TDS on property. Can the knowledgeable please answer them. 

1. I have signed two agreements with the builder.

a. Sale Agreement b. Construction agreement 

None of these are more than 50L in value but both put together is more than 50L. 

As the sale value of the property is less than 50L, is the rule applicable for me? 

2. I have already given my first installment without deducting the TDS. Shall I deduct that part in the next installment and  deposit all of it at once? Is there any violation of rule here?

Thanks a ton in advance.

Replies (1)

As per Section 194ia, TDS on Property is only to be deducted at the time of purchase of property and not on construction.

So in your case, only the amount at which the property is being registered would be considered and amt for construction cost would be ignored.

So in your case, TDS would not be required to be deducted.

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