• TDS on purchase of property (company transfer)

Hello, I am purchasing a residential builder floor in Gurgaon developed by Unitech Ltd. It will be transferred by Unitech from the seller’s name to my name. The conveyance (registry) has not been done yet. In this case, is TDS payable on the total consideration amount? Is it to be paid the same way as in case of a sale deed?
Asked 2 years ago in Taxation

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6 Answers

Yes applicable TDS will be deducted. You can claim it if your income slab permits you

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

TDS has to deducted by seller from the purchase amount when the price of property exceeds 50L at the rate of 1 %. Suppose property is sold at 70L TDS is deducted at one per cent on 2L. Seller will download TDS form from TIN NSDL website, fill up the form and make payment of TDS.

Ravi Shinde
Advocate, Hyderabad
4041 Answers
42 Consultations

5.0 on 5.0

- As per Section 194IA of Income Tax Act, A buyer has to deduct tax at the rate of 1% of the sale consideration, if the value of the transaction is Rs 50 lakhs or more.

- Hence, being the buyer , you have right to deduct TDS at 1% of the total sale consideration , and not seller. 

- Further, No TDS is required to be deducted if sale consideration is less than Rs 50 lakhs

- And further, if the payment is made by installments, then TDS has to be deducted on each installment paid.

Mohammed Shahzad
Advocate, Delhi
13105 Answers
195 Consultations

5.0 on 5.0

There is no TDS  for construction agreement;

Sale consideration refers to the sale price of the property, and any additional payment made towards car parking, club house membership, electricity and water meter connection, etc.

TDS is applicable on sale of properties only if its consideration value exceeds Rs. 50 lacs (Rupees Fifty Lacs). If the property is sold for below Rs. 50 lacs, no TDS is payable.

However, it is to be noted that if the sale price of the property exceeds Rs. 50 lacs, TDS is applicable on the entire amount and not just on the differential amount. 

IT IS ALSO IMPORTANT FOR THE BUYER TO RECEIVE PAN DETAILS OF THE SELLER. IF THE PAN OF THE SELLER IS NOT PROVIDED, THEN TDS IS APPLICABLE AT 20%OF THE SALE AMOUNT..

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

TDS deduction under section 194IA is always done on payment basis.

 

 

You need to deduct TDS of the seller and not the builder since you are making the payment to him and not to the seller.

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

Dear Client,

TDS is to be paid as in the case of a sale deed if the sale consideration is above 50 lakh. 

Anik Miu
Advocate, Bangalore
8742 Answers
109 Consultations

4.7 on 5.0

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