You may inform the bank to give it in writing quoting the relevant provisions of law. 

On receipt of the demand notice you may contact your auditor,  verify the correctness of the details furnished by bank and decide further compliance or refusal to comply on the advice of your auditor. 

The buyer has to deduct TDS at 1% of the total sale consideration. Note that the buyer is required to deduct TDS, not the seller. No TDS is deducted if sale consideration is less than Rs 50lakhs. If installments are being paid TDS has to be deducted on each installment. Tax is to be paid on the entire sale amount. For example, if you have bought a house at Rs 55lakh, you have to pay tax on Rs 55lakh and not on Rs 5lakh (i.e. Rs 55lakh – Rs 50lakh). This is applicable even when there is more than 1 buyer or seller. If you are the buyer, you do not need to obtain a TAN (Tax Deduction Account Number) number. If you are the seller, you have to provide your PAN or else TDS is deducted at 20%. PAN of the buyer is also mandatory. TDS is deducted at the time of payment or at the time of giving credit to the seller, whichever is earlier. This TDS has to be deposited along with Form 26QB within 30 days from the end of the month in which TDS was deducted. After depositing TDS to the government, the buyer is required to furnish the TDS certificate to the seller. This is available around 10-15 days after depositing the TDS. The buyer is required to obtain Form 16B and issues this TDS certificate – Form-16B to seller.

TDS has to be deducted from.the sale consideration that is total amount, you don't have to pay it over above the sale.considerstion.

As per the provisions of income tax laws, the home buyer has to deduct tax at source at 1% from the purchase consideration, in case the value of the property exceeds Rs 50 lakhs. This applies to properties purchased through auction as well.

Ask bank to furnish you revised NPA guidelines wherein 1 per cent TDS has to be paid over bid price 

TDS will deduct from actual sale price which is borne by seller. Bank wants you to pay TDS amount for them. Decline.

Mandatory for purchaser to deduct 1%TDS from actual sale amount otherwise you will be held guilty for tax evasion. 

1. You can pay the mandatory 1% TDS (which is applicable for all immovable property transactions).  This you will be able to claim back, AFTER filing your income tax returns.

As per the provisions of income tax laws, the buyer has to deduct tax at source at 1%  from the purchase consideration, in case the value of the property exceeds Rs 50 lakhs. This applies to properties purchased through auction as well.

Insist the Bank for furnish the certify copy of the said NPA Guidelines of 2019, check whether it is applicable to your case.

You are not supposed to pay additional TDS over and above auction price.

Insist the Bank to give it in writing to pay said additional 1% TDS, if it is not within guidelines, you can initiate proceedings in court for false claim.

1. Ask bank to provide copy of NPA guidelines which mentions that bidder have to pay 1% TDS on Bid price to bank. 

2. Buyer is not liable to pay TDS on purchase price instead buyer cab deduct TDS from consideration.

You will deduct 1%tds from payment amount from bank. Do not pay any tds amount to bank.