25 August 2013
I have purchased a flat on part payments basis payments subject to progress of construction. The cost of flat is aprox 80 lacs, Bank loan Rs.60 lacs. The builder has quoted 81 lacs cost while the broker through whom the deal was made has given discount of Rs. 1 lac. Agreement with builder is for 81 lacs. After payment of 40% of the cost the broker has send us a cheque of Rs 90,000/- (Rs. 1 lac - TDS @ 10%). I have deposited the cheque in my Housing loan account. Now please guide me: a) Whether this discount from broker to me would be added in my current year income or the cost of flat would be reduced by this amount. b) If it is to be refused from my cost of flat how the TDS would be treated.
The discount given by the broker is not adjusted with the builder but seperately paid to you in the form of money, which has to be offered as income under the head other sources for the current financial year. There would be no problem in claiming the TDS.
CAclubindia
