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Timing of TDS on resale property under constructions

I am buying a under construction property in Bangalore. As per process, I have to pay (1) Give a Token Advance (2) Sign a MOU and pay 10% of sale considerations (3) sign an assignment agreement with the builder, seller (4) Sale Deed registration (this will happen in Jul/Aug’2014).
The total sale consideration of the property is 1.2cr. I would like to know at what stages I should deduct the TDS from the sale considerations and give the TDS to the seller ?
Note: The seller is clearing all the dues to the builder/developers prior to the assignment agreement signing.
Looking forward to your response.

Others Added 2 years ago

One Response

  • 1

    As per the recent amendment of the law any person who buys any property has to deduct tax from the payments to be made to the seller @ 1% of the sale consideration in case the sale consideration exceeds Rs. 50 lacs. This has to be done either at the time of credit of the amount in the books or at the time of payment. Since individuals do not maintain any books of accounts, they have to deduct tax @ 1% at the time of payment. The tax so deducted has to be deposited with the government within seven days from the end of the month in which the payment for purchase of property is made. The payment has to be made in a special form no. 26QB, which is a challan cum return.

    The details of the above challans have to be filled in online. The payment for the same can either be made online or offline in any bank.

    It is necessary to fill in the PAN details of buyer and seller both. In case you do not have the PAN details of the seller, you will have to deduct tax @ 20%.

    The buyer has to issue a TDS certificate in form No. 16B within 15 days from the due date of filing the challan cum return.

    Preliminarily you have to deduct the TDS as and when you pay to the seller. However you matter seems little complicated, I would advise you to take help of a professional Chartered Accountant. The payment has to be made through the website of NSDL. An e-tutorial on step-by-step guide for payment of TDS on property transaction is given on the following link https://www.tin-nsdl.com/TDS/TDS-Introduction.php