Fine regarding late payment of 1%TDS for property

[Sundar]

I was paying 1% TDS amount whenever the fund was released for each floors of my apartment. This was routine till 14th floor out of 31 floors till 11th May 2019.

At 19th June 2019 I received a mail from CRM of builder mentioning that TDS amount was not applicable to me due to the discount provided. 

After 5 years, I received a call from builder for registration and we have registered it on 17th May 2024. During that time they haven’t intimated me about the 1% TDS. If it was mentioned that time I would have paid it.

After a year, i.e. on 27th June 2025 I received a call from CRM of builder saying that we have to pay 1% TDS since the sale deed value is more than 50 lakhs. When I discussed with him about the mail we received on 19th June 2019 which mentioned that TDS is not applicable, he said it was wrong calc. from that CRM who has left the job already and he insisted me to pay TDS ASAP.

I paid the remaining TDS amount on 3rd July 2025. On 6th July 025 I received mail intimation from TDS CPC mentioning that default have been identified and I should pay Rs. 76,600/ - as late fee.

. Can someone please guide in resolving his issue.

AI Summary

Builder demands TDS payment after five years claiming previous exemption was employee error causing penalty dispute A property buyer paid 1% TDS on installments for 14 floors of a 31-floor apartment until May 2019. The builder's CRM then informed the buyer via email that TDS was not applicable due to discounts provided. The property was registered in May 2024 without any TDS discussion. In June 2025, a new CRM contacted the buyer demanding remaining TDS payment, claiming the previous exemption was incorrectly calculated by a former employee who had left. The buyer paid the outstanding TDS in July 2025 but subsequently received a notice from TDSCPC demanding late payment fees of Rs. 76,600. The buyer seeks guidance on resolving this penalty issue, having relied on the builder's earlier communication that TDS was not required.