Q:I have booked an apartment in Elita garden phase 2. Just want to let others know in India above 50L property buyers is supposed to withhold 1% tax and pay 99% on each payment to builders. Elita did not inform about this and accepted 100% payment for few installments. Not sure if anyone out there still not aware about the rule. Penalty is on buyers of not withholding the tax. Elita simple hide it until I inquire about it.
Latest Answer: Good afternoon everybody!!!!!!
As per the Income Tax Act, tax must be deducted at source by the buyer of a property from payments made to a seller who is resident in India. TDS must be deducted on sale of all types of property, except where the property sold is an agricultural land. TDS is applicable when receipts are of more than Rs 50 lakh. This TDS must be deducted 1% by the buyer at the time of making the payment.
