TDS on property bought from first buyer before completion of construction
This query is : Resolved
21 January 2025
Hi Experts,
I bought a property from a property investor (not the builder) while the construction was still ongoing. I paid him for his equity based on his valuation, which was in excess of 50 lacs. Now the property possession is coming near, and the final payment due to the builder this time is less than 50 lacs. Do I need to deduct TDS and submit on behalf of the builder?
Also is there any rule about TDS payment proportions in case of 2 buyers?
Many thanks,
CA Amit Khaitan
I bought a property from a property investor (not the builder) while the construction was still ongoing. I paid him for his equity based on his valuation, which was in excess of 50 lacs. Now the property possession is coming near, and the final payment due to the builder this time is less than 50 lacs. Do I need to deduct TDS and submit on behalf of the builder?
Also is there any rule about TDS payment proportions in case of 2 buyers?
Many thanks,
CA Amit Khaitan
Dhirajlal Rambhia
(Expert)
22 January 2025
Yes, TDS deduction over balance payment is mandatory. Rule is based on the total property value.
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