Hi
You were required to deduct TDS on all installments paid after 1.6.13.
Calculate TDS @1% on all payments added by interest and pay it now.
TDS
Hi I have purchased an under construction property in Gurgaon in 2011. It has a construction linked payment plan. I have nearly paid 96 percent of the total money to be paid and the delivery of the flat is expected in end of this year. However , I have not deducted or filed TDS for the money I have paid until now. Can someone guide me as to how should I proceed? Should I look at the timing of each payment and calculate interest or should I look at the total money paid ( since the time the TDS clause came into picture ) and deduct 1% and pay it now. Please help .
Asked 6 years ago in Property Tax
Hi,
In case of under construction properties, TDS will be deducted on installments paid on or after 1st June, 2013. For that, the total purchase consideration should be more Rs. 50 lakhs. There will be no tax deducted at source for installments paid before 1st June, 2013.
Interest on TDS will be calculated from the date of each installment
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Thank you. What is the rate of interest that I need to pay and how is it to be calculated . Also TDS needs to be deducted on the entire instalment that I paid ( including service tax)
Asked 6 years ago
Since TDS is not deducted in this case, interest shall be one percent (1%) for every month or part of a month on the amount of such tax from the date on which such TDS was deductible to the date on which such TDS is deducted.
Also, there would be late filing fees for 26QB which is Rs. 200 per day; not exceeding the deducted tax amount in total.
TDS will be deducted on amount excluding service tax.
Hi,
You will have to pay interest @1% for every month or part of the month. Further, a late fee of INR 200 per day shall be levied for late filing of TDS return. Further, a penalty may also be levied by the assessing officer.
You don't need to deduct TDS on service tax portion.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Tds should have been deducted @1% for each installment paid after 01.06.2013.
Can you let me know the total cost of the property as tds is applicable for a purchase consideration of 50 lakhs or more.
Interest will have to be paid @1% for every month or part of the month. Further, a late fee of Rs 200 per day will have to be paid for late filing of TDS return. The assessing office may also levy a penalty in this case.
Just curious to know, didn't the builder offer to file the return on your behalf as usually big builders collect the total sum and deposit the tds with the tax department on begalf of the customers.
Hope your query is resolved.
Regards,
Nikhil
Hi,
Interest is payable from the time each of the installment was paid. If the sale price is less than Rs. 50 lakhs then there will be no TDS. If it above Rs. 50 lakhs, then TDS is deductible from the first installment itself.
TDS of 1% is only on the value of the property, not the registration cost, stamp duty, society formation, service tax, etc.
Interest is calculated at the rate of 1% per month. Late fee is also payable of Rs. 200 per day subject to a maximum of the amount of TDS.
Trust this clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
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