Can tds be deducted in advance before making payment to seller

Vicky Kumar (Job) (94 Points)

05 July 2024  

Hi,

I have bought a flat for 86 lacs. My sellers were joint owners and had equal share in the flat. One of the seller was an NRI and other one is resident Indian.

I had signed agreement to sell on 05-Mar'24 and made a payment of 6 lacs to them ( 3 lacs each).

I made the rest of payment in Apr'24 through bank loan and self funding. Also, registry of the flat happened in Apr'24.

I had deducted the tds on complete 86 lacs in Mar'24 only and submitted it and filed the tds return [For NRI ( @ 20.8%) on 43 lacs and for resident indian ( @ 1%) on 43 lacs].


Is this fine as I deducted the complete tds on 86 lacs in March'24 only when I just made 6 lacs advance payment to sellers ....made rest of the payment to sellers in Apr'24 and registry also happened in Apr'24 ?