1% TDS ON NEW PURCHASE PROPERTY

[mangesh R]

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.

AI Summary

TDS on property purchase must be deducted at payment or on credit, so deduct on each instalment paid.
The transferee must deduct tax at source at the time of credit to the transferor or at the time of payment, whichever is earlier. For under construction properties paid by instalments, credit to the transferor ordinarily does not occur before payment, so tax must be deducted on each instalment when paid; a single lump sum deduction for the entire agreement consideration is not the prescribed mechanism.