TDS u/s 194-IA on the Home Loan Disbursement Amount

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niki (Querist)
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09 April 2025 Hi All,

I am buying a property for 80 lacs. I have paid a token amount of Rs. 1,00,000/- to the seller on 2nd April 2025. Housing loan will be of Rs. 50 lacs.

The balance sale consideration will be pay in 3 instalments i.e. Rs. 9 lacs on 10th April 2025 and Rs. 20 lacs 15th April 2025 and the Sale Agreement will also be signed on the same day - 15/04/2025. Finally, the balance amount will be paid by housing loan directly by bank.

I will pay tds on payments to seller thru my bank account - as 99% to the seller and 1% to GOVT. thru 26QB...
but what about tds on home loan amount? how does it work?

My query is how tds paid on home loan amount? whether I should pay or bank will deduct and pay on my behalf?

Should I inform bank to pay 99% to seller and 1% to me (my sb a/c) and then I pay tds thru 26QB? This seems a proper approach to me. Please advise.

Does anyone have a format of letter to write to bank home loan department for such request?

Thanks
Niki

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 April 2025 TDS needs to be deducted on the whole of the amount. In case you have already paid your part of the consideration, the bank can give you the 1% of the loan amount for TDS and the balance directly transferred to the seller. Talk to your relationship manager.

niki

niki (Querist)
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11 April 2025 So I have to ask the bank to only disburse 99%to buyer and transfer 1% to my account and then I should pay the tds thru 26qb ... Is that correct?

Does anyone have a format of letter to write to bank home loan department for such request?

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