TDS on purchase of Flat under subvention scheme before TDS implementation rule

Hi,

I purchased a flat on 2012 from a builder.  Builder buyer agreement was done in nov 2012. the basic consideration was approx.  Rs. 63L .  I took home loan from bank.  my deal was under subvention schedume of 95% of loan was disbursed and paid to builder in dec 2012.   1% TDS rule was implimented in june 2013. 

Last 5% amount was paid to builder in aug 2023.  registery is pending till nov 2024.   Builder is asking RS 58000/-  to be deposited as TDS since then.

My question is :  Is this transaction attact 1% deduction of TDS ?  if yes, why ?  i have paid 95% with VAT  before implimentation of TDS rule. 

 when it is supposed to be paid ?

 

 

Replies (1)

You are liable to deduct & pay TDS only over 5% of the agreement value, i.e the amount due after the implementation of the rule.

As such TDS amount is to be deducted from builder's due amount & balance is to be paid. It is not extra burden to purchaser. Is builer ready to pay you extra amount for such TDS deduction?

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