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TDS on sale of under construction property

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RAMAN KHANNA

Cost and Finance Controller

61 Points Posted on 25 December 2023

Can anyone please guide on below:

(1) Mr. x bought a under construction flat from one of an allottee (original buyer) before possession and conveyance deed for Rs. 60 lakhs in FY 2022-23.

(2) Money was paid to the original buyer / allottee in FY 2022-23 after holding TDS @ 1% amounting to Rs. 60,000/-

(3) The flat was transferred by the original buyer/allottee in the name of Mr. x in April 2023 in the records of Builder. The flat and amount paid by the original buyer / allottee (Rs. 30 lakh) is now transferred in the name of Mr. x in the records of the Builder.

(4) After completion of project, conveyance deed was executed by the builder in Oct 2023 in the name of Mr. x. for Rs. 30 lakh. Although the stamp duty value is 80 lakhs. No TDS was deducted at this time.

(5) TDS deducted by Mr. x is not yet deposited in the name of the original buyer / allottee.

Can anyone please guide on tds ? TDS is to be deposited in whose name ? Is there any penalty / fine to be deposited also.

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Quick Summary

This discussion explores the complexities of Tax Deducted at Source (TDS) when purchasing an under-construction property from an original allottee. The user paid TDS on the initial payment but is unsure about depositing it correctly. The situation involves a property transfer before possession and a subsequent conveyance deed with a stamp duty value higher than the sale price, raising further TDS questions.