Tds on purchase of property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2013 I Want to know if a person purchases a property from a builder, to whom amount is to be paid in installments. Then in this case TDS liability will arise on which amount and when.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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31 October 2013 on every installment of payment made tds needs to be deducted @1% by buyer it the amount exceeds rs 50 lakhs in aggregate of property.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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31 October 2013 Agree with Expert Mr. Tushar,

Rate at which TDS shall be deducted :- Tax is deductible at the rate of 1% of the consideration payable to a resident transferor.

If a valid PAN is not provided by the seller, the tax rate would go up to 20%.

Tax shall be deducted at the time of payment or at the time of giving credit to the transferor, whichever is earlier.

If advance payment is being made then TDS would be required to be deducted at the time of advance payment itself. And if installment payment is made, the TDS would be required to be deducted at each such installment.

The tax deducted shall be paid to the credit of Central Government within a period of seven days from the end of the month of deduction.

For Complete details,

https://www.caclubindia.com/forum/tds-on-sale-of-immovable-property-sec-194ia-simplified-268528.asp

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Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2013 But in case some installments have already been paid before the applicability of this provision and some installments have to be paid now.

In this case TDS will be deducted on the payments made after applicability of this or on full amount what we have paid earlier ?

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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03 November 2013 As per the provisions the TDS has to be deducted at the time of payment or credit so the payment made earlier prior to the date of applicability of this section is not liable to TDS. On rest of the payment the buyer will have to deduct the tax.