Hi,
I bought an apartment with a sale consideration value of around 60 lakh and currently under-construction. Construction started in 2014 and will get hand-over in Feb'18. Usually as per rule I was suppose to deduct 1 % TDS from instalment and submit to government but not yet done as I'm paying whole amount to builder directly until now. Is there a provision if I will pay whole lump sum amount of 1% TDS now to government before possession, then I would not be liable for any late charges or fines? Kindly suggest.
Regards,
Aman
Buyer Faces Penalties for Not Deducting 1% TDS on Apartment Purchase, Faces Interest and Late Fees Under Sections 201, 234E, 271H. A buyer of an under-construction apartment valued at approximately 60 lakh inquired about the 1% TDS requirement, having paid the builder directly without deducting TDS. An expert clarified that TDS should be deducted at each installment or full payment. Since the buyer did not deduct TDS during payments, they are liable for a 1% monthly interest on the unpaid TDS from the payment date until deduction. Additionally, penalties and late fees apply for not filing Form 26QB on time, with specifics under sections 201, 234E, and 271H of the Income Tax Act, 1961. (AI Summary)
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