Rs , sq ft

Removed from Shortlist

My Shortlist ()
Keep track of your shortlisted properties here. Shortlist a property to get started.

TDS on under construction property

Q: Incase of no deductions with eralier payemnts , can the buyer deduct 1% from the last installments . Is there a penalty for TDS not done for earlier payements
Replies (3)
1
Hi, under Income Tax Act, if you make a payment towards purchase of immovable property for an amount of Rs. 5000000 or more than you have to deduct TDS @1%. Hence, in your case even if the property is under construction you are essentially making payment towards purchase of property. So, you will have to deduct TDS on the payment.
Paras Lal


2
HI MAneesh!!
When a person is buying an under-construction property, in such cases, the TDS should be deducted when the property is handed over and the final payment is made. For under-construction property, the buyer is considered to hold an interest in the property and for taxation purpose is not considered the owner until completion.
Pranay Malhotra


3
Hi Maneesh!!
Tax deducted(TDS) from payments made to seller shall be deposited to the government treasury within 7 days from the end of the month of deduction.

If tax is not deducted at all: Interest at 1% for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted.
Nikhil Agarwal


4

Ask a Question
120 Characters Left











    CommonFloor Property Search Mobile App now available on Android, iOS and Windows!