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

TDS on property sales: late payment following disputed applicability can trigger penalty notices and demand for late fees. Obligation to account for TDS on property payments arose when funds were released; a builder later claimed a discount made TDS inapplicable, causing delayed final payment and registration. After conflicting communications, the payer remitted outstanding TDS, but the tax deduction centre issued an intimation identifying default and a late fee for delayed remittance.