TDs on sale of property

This query is : Resolved

Prakash (Querist)
Follow

13 November 2019 I hv booked a under construction flat costing Rs.6300000 for that I hv paid 10percent of booking amount in the month of aug 19,for this stamp duty and registration will be done subsequently, after this,builder is asking me to deduct TDS of 1 % on total flat cost in lumpsum rs.63000 .my enquiry is whether I can pay lumpsum TDS of 1% percent in advance or say at the beginning as my disbursement is in installment . I have paid Rs.630000 as a booking amount before finalizing the deal before sanctioning of loan from bank.Whether TDS is applicable on this booking amount before registration of flat as this is just as a booking amount .pls guide.
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 November 2019 TDS applicable on booking amount before registration.

Virendra Chaturvedi

Virendra Chaturvedi (Expert)
Follow

15 November 2019 If the cost of the flat is above 50 lakhs you have to deduct 1 percent of the amount and pay the same to the government as TDS.

The balance you will remit to the builder.

For this Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required quote his or her PAN and sellers PAN.

The Buyer of the property (deductor of tax) has to furnish information regarding the transaction online on the TIN website i.e. TIN use challan 26QB. After successfully providing details of transaction deductor can:

Either make the payment online (through e-tax payment option) immediately;
Or make the payment subsequently through e-tax payment option (net-banking account) or by visiting any of the authorized Bank branches. However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on TIN website (www.tin-nsdl.com)
As per the CBDT notification no. 30/2016 dated April 29, 2016, the due date of payment of TDS on transfer of immovable property has been extended to thirty days (from existing seven days) from the end of the month in which the deduction is made.

Example: If a taxpayer has made payment of sale consideration in the month of February, then corresponding TDS should be deposited on or before (thirty days) March 30th.

Online statement cum challan Form/ Form 26QB is to be filled in by each buyer for unique buyer-seller combination for respective share. E.g. in case of one buyer and two sellers, two forms have to be filled in and for two buyers and two seller, four forms have to be filled in for respective property shares.

Upgrade to CAclubindia Pro. Subscribe Now!