Need help to understand tds for under construction apartment
This query is : Resolved
13 May 2017
Hi ,
Recently I brought an under construction apartment. The contruction is supposed to complete in Dec 2017 which is when the registration will happen.
I also came to know about the TDS needs to be paid for property > 50 L and mine qualifies for the same.
I had paid my previous installments ( bank to builder) without deducting the TDS ( 1%) . In this regard, will it suffice if I deduct the entire TDS at the time of the registration? Please help
Regards,
Edsel
Recently I brought an under construction apartment. The contruction is supposed to complete in Dec 2017 which is when the registration will happen.
I also came to know about the TDS needs to be paid for property > 50 L and mine qualifies for the same.
I had paid my previous installments ( bank to builder) without deducting the TDS ( 1%) . In this regard, will it suffice if I deduct the entire TDS at the time of the registration? Please help
Regards,
Edsel
13 May 2017
Hi,
Yes you can deduct entire TDS at the time of registration
But as per provisions of income tax act TDS is required to be deducted at the time of payment of when expense book whichever is earlier, in given case TDS is also required to be deducted at the time of part payment, you can also deduct that later on but interest of 1% at amount of TDS not deducted earlier is also required to be deposited.
Yes you can deduct entire TDS at the time of registration
But as per provisions of income tax act TDS is required to be deducted at the time of payment of when expense book whichever is earlier, in given case TDS is also required to be deducted at the time of part payment, you can also deduct that later on but interest of 1% at amount of TDS not deducted earlier is also required to be deposited.
18 June 2017
Thank you very much sir.
Really sorry for the delayed response. Can you clarify a bit on the expense book part? I am not sure I understood it clearly.
-Edsel
Really sorry for the delayed response. Can you clarify a bit on the expense book part? I am not sure I understood it clearly.
-Edsel
19 June 2017
Expense incurred before completion of construction till construction is completed should be capitalized and forms part of cost of asset/apartment.
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