Clarification on 1%TDS Eligibility for my Property

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  1. virtualkarthik

    virtualkarthik New Member

    Hello CAs

    Need your expert advice on a dilemma that I have related to the 1% TDS for immovable property above 50L.

    I bought a Under-construction flat on Oct 2015 which was registered on 2015 for the below values as two documents.

    Sale Deed for UDS - 8,46,000/-
    Construction Agreement - 43,92,822/-

    I took the possession of the flat on September 2016.

    Total Cost break up of the Flat Provided by the Builder is as below

    Flat Cost ( 1093 Sqft x Rs 4386.24) - 47,94,157.00
    EB Charges - 35,000.00
    CMDA & Panchayat Charges - 1,19,137.00
    Infra Charges ( Road Pavement) - 38,255.00
    STP Charges - 60,115.00
    Legal & Documentation Charge - 15,000.00
    Service Tax - 1,77,158.24

    Grand Total - 52,38,822.24

    Provided the above details, I just want to know should I pay the 1% TDS tax. Taking the Flat cost which is just 47,94,157/- should I ignore it ?

    I have already paid the full amount to the Builder and now I need to pay from my pocket and get it reimbursed from him if its applicable for me.

    This was a surprise to me as I wasn't aware of this Rule.

    Your inputs and clarification would be much appreciated.

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