Tds on sale of property, interest on late deduction

TDS 957 views 3 replies

Akash Gupta

25 Points Joined January 2015

I have to compute interest for late payment of TDS on the TIN website.

There were three payments to be paid to the company:

Rs 10,63,875 on 12/08/14
Rs 17,56,933 on 06/10/14
Rs 11,03,253 on 30/10/14 (TDS was deducted from this one, hence payment was Rs 10,58,612)

Amounting to Rs 44,64,061. The TDS for all the three payments (Rs 44,641) was deducted from the last payment on 30/10/14.

I have the following queries:

Should the TDS payment be done in three separate transactions, or a single one?
How should interest on late payment of TDS be calculated in this case?

Replies (3)

CA Saloni

Manager-Accounts & GST Consultant

5124 Points Joined July 2014

Dear Akash kindly refer to following

/articles/194-ia-tds-on-sale-of-immovable-property-complete-details-19736.asp#.VKumJskuhkg

Arif Ali

Apt Co Advisory

1230 Points Joined June 2009

first of all, you have to confirm the purchase amount of immovable property is exceed Rs.50lac or less. It it is upto 50 lac, then no liablity to deduct the TDS.

and if purchased amount is exceed Rs. 50 lac, then you have to decut the TDS @ 1% on the credit the account of seller or payment, whichever is earlier.

In you case it seems for less than 50 lac. so no liability to deduct the tds. However if it is more than 50 lac, then liability to deduct the TDS.

if you have done the payment without dedcution of TDS, then you have to pay the interest @ 1% per month or for a part of a month from the date on which it was to be deducted to the date of deduction. and 1.5% from the date of deduction to date of payment.

I hope your query is now solved out.

Akash Gupta

25 Points Joined January 2015

Thanks Arif for the clarification, and your time.

Yes, the consideration of the property is well above 50 lacs.

So I need to calculate the interest for the first two payments (12/08 and 06/10) as 1% till 30/10, and afterwards, interest for the total amount at 1.5% p.m. till the date of payment?

Also, do I need to pay the TDS in three separate transactions (representing the three payments) or a single one?