1% TDS to be submitted by buyer on Real Estate purchase

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  1. Aswini Kumar Sahoo

    Aswini Kumar Sahoo New Member

    I have following doubt about this rule.
    1. The value 50 Lakh above which the Buyer needs to deduct 1% TDS.
    Is this value decided based on the value mentioned in Registration document/Sale deed? (Property is a Flat bought from builder)
    2. Various additional charges levied during purchase of flat like Service Tax, Maintenance/Corpus fund, VAT etc. Are these charges included in the 50Lakh limit or can be reduced from purchase value for calculating the limit to decide, whether TDS needs to be paid by buyer or not ?

    Thanks in advance for the advice.
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    It is on value as per sale deed i.e TDS @1% has to be deducted on the consideration agreed between you & builder.
    And as u said,whether as per registration document (or) sale deed ??
    this has to be find out at the time of calculating capital gain tax(sec.50c) (or) gift tax(sec.56).
    Since service tax&vat does not form part of consideration to builder,TDS shall not be deducted on such duties.
    Also u r not require to deduct TDS on maintenance charges charged by builder,as this amount is not a capital receipt.
    Last edited: Apr 23, 2016
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