Tds on property

294 views 2 replies

Amarendra

21 Points Posted on 12 June 2017

Hi team,

I had booked an apartment on Nov 2015. The cost of the flat is 67 Lacs. But developer had 2 agreements, one is the sale agreement for UDS and other one is construction agreement.

The Sale agreement is somewhat 18 lacs and the Construction agreement is 49 Lacks. Do I need to pay the TDS @ 1% and submit the receipt to the builder. If yes, on what amout I had to pat the TDS?

I havent paid any TDS yet and I had already make a total payment of 65 lacs to the builder. How to proceed further.

Thanks

Amar

Replies (2)

sivaram

Asst Mgr-Taxation

6918 Points Posted on 12 June 2017

TDS is applicable only on construction cost if it exceeds 50 lacs deduct 1% tds on that and pay the balance .There are divergent views in this regard according to me TDS is not applicable on UDS ie land and applicable only on super structure building

abinash saraph

2 Points Posted on 14 June 2017

Thanks Sivaram. I have a similar case where I bought the property for 65 lac on around Oct 2015. All the installments were paid on time pending the last one but TDS was not paid as I was not aware of this.I have a few questions and it would be great if you can advise-

- As my spouse is co-owner, do we both need to pay tds

- Can I pay the whole TDS one go when I pay the last demand or need to pay for all the installments separately

- I understand there is a late fine as well intrest on this and how this will work out in this case.

Thanks again.

Abinash