TDS on Immovable property

Year 2014: Apartment booked with builder on Construction Linked Payment Plan.

Consideration Amount of Property on Agreement = 49 Lacs. TDS not paid on any installment as consideration value is less than 50 lacs.

 

Year 2020: Possession of apartment offered.

Builder sends final invoice with increased super floor area, New Consideration Amount = 52 Lacs.

 

Will TDS be applicable now? Is it to be paid on only 52-50 = 2 lacs or on complete 52 lacs.

Is any penalty / interest applicable in TDS.

Replies (2)
Quick Summary
This discussion clarifies the applicability of Tax Deducted at Source (TDS) on immovable property transactions. Initially, if the property value was below 50 lakhs, TDS wasn't paid. However, if the final consideration increases to over 50 lakhs upon possession, TDS becomes applicable on the entire amount. Late payment of TDS will also incur interest.

The TDS have to be paid on the entire consideration of Rs. 52 Lacs. 

Interest shall be applicable on the late payment of TDS. 

TDS is required to be deducted and to be paid along with interest.

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