TDS for Advance Maintenance

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Praveen Shetty

Salaried

21 Points Posted on 30 July 2025

I have paid the builder fully (including TDS) for all construction linked milestones and the builder has offered the flat for possession. So all items paid linked with Flat cost.

Alongside builder has also sent an invoice for additional charges including society formation, advance for maintenance, electricity meter & piped gas connection charges etc which includes a 1% TDS component that I need to pay. Should this TDS be filed as per for 26 QB?

If this needs to be paid as per for 26 QB - what should be included in the following fields:

Date of Agreement/Booking
Total Value of Consideration (Property Value)
Date of Payment/ Credit made to Seller
Pament type - Installment or Lumpsum
Date of Deduction

Please note that I have made the payment for above stated additional items to builder on 26 July 2025 and the only amount outstanding is for its TDS. Please advise.

The property was purchased at 1 Cr (including 1 lakh TDS), now the demand from builder is for 3 lakhs and this has a 3 thousand demand for TDS.

Replies (5)

Quick Summary

This discussion clarifies the process of deducting and depositing Tax Deducted at Source (TDS) on advance maintenance and other additional charges when purchasing a property. The user has paid the builder in full for the flat but received an invoice for extra charges, including a 1% TDS component. The advice confirms that TDS needs to be filed via Form 26QB for these additional charges, detailing the required information such as agreement date, total consideration for additional items, payment date (26 July 2025), and payment type (lumpsum). It's recommended to verify the legitimacy of the additional charges with the builder and consult a CA for precise guidance on Section 194 IA of the Income Tax Act.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 30 July 2025

You need to pay a 1% TDS component on additional charges like society formation, maintenance, electricity meter, and piped gas connection charges.

Filing as per Section 26Q8:-Yes, if the payment is made to a builder for these additional charges.

Fields to include in Form 26Q:- Date of agreement booking with builder, Total value of consideration (property value): Total amount paid for additional charges., Date of payment/credit made to seller: 26 July 2025., Payment type: Lumpsum.

Verify with the builder if the 3 lakhs demand is legitimate and part of the agreed-upon costs. Check if you have correctly accounted for TDS on this 3 lakhs demand as per Indian tax laws.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 30 July 2025

Please refer section 194 IA of the income tax Act , in detail. You ( buyer) has to deduct TDS at priscribe rate and deposit in Government account at the time of making payment , while buying property from resident Indian. file 26QB and issue TDS certificate in form 16B after depositing TDS .

Take help from CA near by you .

sabyasachi mukherjee

Profession

19978 Points Posted on 31 July 2025

sec 194IA

IN THIS CASE ITS PERTINENT PARTIALLYY

sabyasachi mukherjee

Profession

19978 Points Posted on 31 July 2025

sec 194IA

IN THIS CASE ITS PERTINENT PARTIALLYY

Aashok Kumar Sharma

Finance/Compliance Consultant

72028 Points Posted on 07 November 2026

Yes, 1% applies to these charges too:

• The Explanation to Sec 194-IA (from 1 April 2022) defines "consideration for transfer" to include all charges of the nature of club membership fee, car parking fee, electricity or water facility fees, maintenance fee, advance fee or any other charges incidental to the transfer of the property.

• So advance maintenance, society formation charges, corpus or sinking fund, infrastructure or legal charges collected by the builder at possession attract 1% TDS, if the total consideration (including these) is Rs 50 lakh or more.

• Exclusions in practice: stamp duty and registration (paid to the government) and GST are not consideration to the seller. Amounts paid directly to a registered society (not to the builder) are arguably not consideration for transfer.

• File a fresh Form 26QB for the additional payment, quoting the total consideration including the charges. Issue Form 16B.

• If missed, pay with interest (Sec 201(1A)) and late fee (Sec 234E). Delay is cheap to fix now.