TDS on under construction property resale


I have purchased a property worth 60 Lacs. 30 Lacs paid to seller and 30 Lacs paid to builder on behalf of seller. I missed deducting TDS. What is the amount of TDS and on whose name TDS should be filed- only seller or both seller and builder.

Answers (2)


250 votes

Dear client ,
When a buyer buys immovable property costing more than Rs. 50 lakhs. He has to deduct T.D.S. when he pays the seller. The buyer has to deduct TDS at 1 % of the total sale consideration.and this TDS has to be deposited along with from 26 qb with in 30 days from the end of the month in which TDS was deducted. And if you brought property worth more than 50 lakhs and did not deduct tax at source (TDS )or fail to deposit the amount with the income tax department on time you may have to pay a penalty of up to Rs. 1 lakh. In form 26 qb these details will be file about buyer and seller, agreement date ,detail of property etc.


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307 votes

You have to deduct TDS @1% u/s 194IA. Since your consideration is more than Rs. 50,00,000. Since the amount paid to seller and builder is is Rs. 30,00,000 each you have to deduct Rs.30,000 as TDS from payment to builder as well as seller.

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