TDS for property above 50L with Home Loan

Q: Hi, I have purchased a property for 56L. I have gone in for 80% Home loan. I have been reading forums about the 1% TDS which is applicable. Last week I had my registration done but there was no questions asked on the TDS. I had also asked a couple of brokers in the Sub Registrar office if 1% TDS is really being collected. Most said no. However today the bank from which I took the loan asked if I paid the TDS - they said without me paying TDS they cannot release the loan amount to the builder. Can some one throw light on the procedure of tds payment when going in for home loan?

Also I need clarity if they builder should get 99% of property value and I pay the 1% to government? Or is it 100% of property value to builder plus 1% of property value to government?

Ritesh,

23rd October 2013

Legal in Hyderabad

tds scheme

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Hello Ritesh...if you are is going for property above 50 lakhs you have to pay TDS 1% . It is important to obtain the Permanent Account Number of the seller from whom such tax is being deducted at source. If the seller of the property do not have PAN Card, TDS would be deducted at 20 per cent.