Purchased a property for 56 lakhs

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?

Afzal, Bangalore

11th December 2013

Legal in Bangalore

home loan

properties in bangalore

tds payment

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As per the new provision of the income tax act of 1961, 1% tds is deducted for property over 50 lakhs. Any prospective buyer buying a property is responsible for paying the 1% tds shall at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by cheque or draft. Obtaining a PAN is mandatory for availing TDS.