1 Percentage TDS on Property Resale

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  1. Raghav0710

    Raghav0710 New Member

    I am planning to purchase an all most ready to move Apartment, as a resale, from a owner whose agreement with builder was for 40 Lakhs in 2011.
    Now he is quoting 60 lakhs for this property. And once i pay him the amount, there will be transfer agreement in my name which will involve buyer, seller and the builder.
    In this case, whether 1 % TDS is applicable since the seller will be paying the tax on 20 Lakhs profit from the property?
    If yes, who has to pay the TDS, Builder or the Seller?

  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    As the deal value is Rs. 60 Lakhs, therefore TDS @ 1% would be required to be deducted by the Buyer while making the payment to the Seller.

    TDS is required to be deducted if the deal value is more than Rs. 50 Lakhs.
  3. Raghav0710

    Raghav0710 New Member

    Thanks for the information.
    Actually the seller will be investing the amount in another property.
    So once i deduct 1 % TDS, can he file return to claim the TDS back?
  4. Manoj Mehra

    Manoj Mehra Active Member

    Yes, the seller can file for refund of TDS
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