1 % TDS on Property

[Aman Singh]

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

AI Summary

TDS on property payments: failure attracts monthly interest and late filing penalties; file Form 26QB promptly.
Obligation to deduct 1% TDS on payment for purchase of an under construction property arises at the time of each payment or on payment of the entire amount; failure to deduct attracts interest (one percent per month if not deducted, one and a half percent per month if deducted but not paid), a daily late filing fee for non submission of Form 26QB, and a separate penalty for delayed filing, with the deductor treated as an assessee in default until liabilities are cleared.