TDS on Property above Rs. 50 Lakhs

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  1. PRASHANT SINGH

    PRASHANT SINGH New Member

    TDS on sale of property is required to be deducted on the total amount in case the value of the property sold is more than Rs. 50 Lakhs
     
  2. PRASHANT SINGH

    PRASHANT SINGH New Member

    I have a query if I have purchased a property at 50 Lakhs and government value of property i purchased is 60 Lakhs i will have to Deduct 1 % TDS on 50 Lakhs or 60 Lakhs.
     
  3. Neha Sharma

    Neha Sharma Active Member

    TDS on Property is to be deducted from the amount paid for the purchase of property irrespective of the stamp duty value/ govt value of the property.

    So TDS in this case would be deducted on Rs. 50 Lakhs only.
     
  4. PRASHANT SINGH

    PRASHANT SINGH New Member

    If i have deducted on 60 Lakhs ?
     
  5. Neha Sharma

    Neha Sharma Active Member

    You have deducted more tax than what was required. So, from tax prospective - there wont be any problem.

    So if the seller of property is Ok with higher deduction, you can just sit back and relax.

    From tax perspective, you are on the safe side.
     
  6. Zenith Thomas

    Zenith Thomas New Member

    Query : I purchased property in Jan 2013 (CLP construction linked plan) , before 1 % TDS on property rule got applied. I paid the builder 2 instalments after 1st June 2013. One in July'13 and the other in Dec'13.
    Do I need to deduct 1 % TDS on payments made after 1st June 2013 or also on the payments made before 1st June 2013 ?

    2) I did not deduct 1% TDS on the two instalments that I paid between 1st June 2013 t0 31st March 2014. what should I do? any interest charges calculated ?

    3) I now have possession demand from the builder need to make final (last instalment) this month. can I club all three payments and deduct TDS once ?
    will "assessment year" issue come in the way between the last year payments and the final one that I need to make now?
     
  7. Karan Batra

    Karan Batra Well-Known Member

    Dear @Zenith Thomas

    You have to deduct TDS @ 1% for all payments made after 1st June 2013
     
  8. Zenith Thomas

    Zenith Thomas New Member

    Dear Karan
    Thanks
    Any advise on point no 2 and 3.
     
  9. Karan Batra

    Karan Batra Well-Known Member

    Not sure on the other 2 points...
     
  10. VicVij

    VicVij New Member

    Ours is a joint account property and sale value is 56 lakhs. Is there an option of having 28 lakhs each so that 1%TDS is not needed. Both of us will be filing tax this year.
     
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