Q:Are VAT, development charges, clubhouse charges, sinking fund contribution to be considered as part of cost for reckoning whether the cost exceeds Rs50lakhs?
Latest Answer: Thanks for sharing the information. Me and my brother has bought a property for Rs 70 lakhs. But both of us have paid Rs 35 lakhs each. Do we have to pay the TDS as the property rate exceeds rs 50 lakhs or not?
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?
Latest Answer: 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.
