Dear Team,
We Purchased land of 1.25 Crore
We paid 1st payment on 01-04-2025 -55 Lac
2nd payment on 15-05-2025-55 Lac
3rd payment on 12-06-2025(Final Payment)-13.75 Lac
So we deducted TDS @1% =1.25 lac on 1.25 Cr at the time of final payment and deposited them.
on 25-06-2025
is It correct
or we should have deposited TDS at the time of each payment.
TDS on land purchase must be deducted at 1% on each installment payment, not only on final payment A company purchased land worth 1.25 crore through three installments: 55 lakh on April 1, 55 lakh on May 15, and final payment of 13.75 lakh on June 12. The buyer deducted TDS at 1% totaling 1.25 lakh only at the time of final payment and deposited it on June 25. The query concerns whether this approach is correct or if TDS should have been deducted and deposited with each installment payment according to income tax requirements. (AI Summary)
TaxTMI 
TaxTMI 
