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Tds on buying house above 50 lacs

nayan (Windows Servers Administrator) (35 Points)

05 March 2019

My friend is going to buy a new house and the cost of the property is above 50 lacs, the builder has asked him to pay tds at 1%, I wanted to know that if he is going to borrow the money from his relative and going to pay to the builder, then does he required to pay tds for the property of above 50 lac of amount?

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7 Replies

Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 05 March 2019

Yes, TDS @ 1% is to be paid, irrespective of source from where money is received.

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 05 March 2019

if the agreement value mentioned in the registered documents is less than 50lacs then no TDS required to be made.

CA. Umesh kumar (ca.umesh11@gmail.com) (1465 Points)
Replied 05 March 2019

Yes. TDS is required to be deducted if cost more than 50 lac. Borrow money ir paying from own pocket is not relevant here.

CS M Pota (Company Secreatary) (3180 Points)
Replied 06 March 2019

See,this is TDS, Tax Deduction at Source,so it is to be deducted from the amount what you pay to the Builder. Suppose you pay Rs. 75 lacs you need to deducte Rs. 75000 ( @ 1% of Rs. 75 lacs) from the Rs. 75 lacs and remaining amount ie Rs .7425000 is to pay to the builder.You are not required to pay amount of TAx over and above Rs.75 lac.

Hope this will clear

1 Like

nayan (Windows Servers Administrator) (35 Points)
Replied 07 March 2019

I would like to know one more thing regarding this, if the payment will be made in different parts then tds will be also paid partly or they can pay full tds at the end of last payment?