Tds on sale of property

This query is : Resolved

CA Chetan Singhal (Querist)
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31 May 2014 Sir,
I have to pay advance against property of Rs. 20,00,000/- toward sale consideration of Rs.1,00,00,000/- sale deed to be executed after 6 months, please suggest me whether should I pay TDS @ 1% on this advance amount or should I pay at the time of sale consideration fully paid.

CA.Rashmi Billore

CA.Rashmi Billore (Expert)
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01 June 2014 TDS on sale of Immovable Property should be deducted from payment on transfer of immovable properties (other than agricultural land) where the consideration paid or payable is more than Rs 50,00,000/-.

As a rule of income tax,TDS is required to be made payment or the credit whichever is earlier.

So tax shall be deducted at the time of payment or at the time of giving credit to the party, whichever is earlier. If advance payment is being made then TDS would be required to be deducted at the time of advance payment itself.