Effective June 1, 2013, the income tax rules require the purchaser of any immovable property (except of agricultural land) of value exceeding Rs 50 lakh to withhold income tax at the rate of 1 per cent and deposit it with the government at the time of credit or payment of such sum (whichever was earlier) to a seller who was a tax resident of India.
2) The new provision applies to agreements entered prior to June 1, 2013 (where the value of the immovable property is more than Rs 50 lakh) only for payments made on or after June 1, 2013. The provision is applicable even if the payments to be made on or after June 1, 2013 are less than Rs 50 lakh, when the overall consideration is more than Rs 50 lakh.
3)required to fill up the requisite challan in Form 26QB and deposit the appropriate tax within seven days from the end of the month in which the amount was deducted
.4) TDS is applicable
5) you have to use landowner PAN as seller as he would be collecting additional payment and completing the construction