Hi,
I bought an apartment with a agreement consideration value of around 66.6 lakh and currently it's under-construction. Construction started in 2019 and will get hand-over in 2023. Usually as per rule I was suppose to deduct 1 % TDS as per agreement value (i.e.66.6 lacks) and submit to government. This project comes under RERA.
I am paying amount in installment as per slab wise so can I pay lump sum of 1% TDS on whole agreement value ie. 66600 before paying entire amount to builder.
Thanks.
TDS on Property Purchase Must Be Deducted With Each Installment Payment, Not as Lump Sum, per Section 194-IA. A buyer inquired about the timing for deducting 1% TDS on a property purchase valued at 66.6 lakh, which is under construction and governed by RERA. The buyer is paying in installments and questioned whether they could pay the TDS as a lump sum before completing payments to the builder. Two responses clarified that TDS should be deducted at the time of each payment to the builder. According to Section 194-IA of the Income Tax Act, 1961, TDS must be deducted whenever a payment is made, not as a lump sum before the total payment is completed. (AI Summary)
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