TDS PURCHASE ON PROPERTY

Total value 2 Crs.

TDS has to be deducted over the installment value.

For a resident seller, TDS under section 194-IA is on the sale consideration, excluding separately stated GST. On the figures given, deduct TDS at 1% of ₹2 crore (₹2 lakh in total), not on ₹2.10 crore. Since there are five instalments, deduct and deposit TDS proportionately on each instalment paid or credited, whichever is earlier. The ₹50 lakh threshold is tested against the property’s consideration, not each instalment.

In Form 26QB, report the amount paid or credited for that instalment, excluding GST, and enter the corresponding TDS. If ₹2 crore is the agreement value and the ₹10 lakh GST is separately shown, the aggregate consideration reported across the five 26QB filings should be ₹2 crore. Confirm that the seller is resident and that the agreement separately identifies GST; non-resident sellers are covered by different TDS rules.

This treatment should be reflected consistently in the builder payment schedule, TDS workings and Form 26QB entries. Manual instalment-wise tracking can be difficult; automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a smoother compliance workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1

TDS on a Rs 2 crore property plus Rs 10 lakh GST, paid in instalments:

• Deduct 1% on each instalment paid. CBDT Circular 23/2017 says TDS isn't on the GST component when shown separately, so the base is the instalment excluding GST (total Rs 2 crore). File 26QB for each instalment.

• The higher of consideration and stamp duty value applies to total value; if the SDV exceeds Rs 2 crore, TDS on the difference too.