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.

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

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.

Popular Property Lawyers

Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
20 years Experience
Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
33 years Experience
Advocate J. P. Rinwa
Swej Farm, Sodala, Jaipur
19 years Experience
Advocate Jaspreet Singh Rai
Greater Kailash 1, Delhi
17 years Experience

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at and has been responded by one of the Property Lawyers at to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at or contact a Lawyer of your choice to address your query in detail.

Related Questions

" has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

Related Articles