• TDS while buying a property costing more than 50 lacs from builder

I paid twice to builder. 1st instalment of 5 lacs on 4th June 2018. 2nd instalment of 96 Lacs today ie 12th June 2018. Please advise how to pay TDS / fill form 26QB. Shall I pay TDS of 1% of above instalments or assume above payments as 99 % of total instalments ie Rs 505050.50 & Rs 9696969.69 and pay remaining 1 % Rs 5050.0 & Rs 96969.69 as TDS.
Also i intend to pay one more instalment of Rs 5000.00 today itself. Can I club it with 2nd instalment of Rs 96 Lacs while filling form 26QB.
For Information my total property value is Rs 12287296.00
Asked 7 months ago in Income Tax from New Delhi, Delhi

Sir ,

as per provision you have to deduct tds at the time of payment of every installment and should be deposit within 30 days after the end of month in which u paid.

therefore you have to deduct tds on your 1st installment and it should be deposit upto 30th July 2018,

since you are still now in period you can deduct and deposit it

Yes it should be assumed that you paid 99% and 1% deducted as TDS

your total tds will be depsoited on transaction will be Rs. 122872.96 ( 1% of 12287296)

and net payment will be Rs. [deleted] = Rs 12164423

deduct and deposit the tds on every installment

Vishal Khandelwal
4 Answers

Not rated


Ideally, you were required to deduct 1% from the amount payable and pay 99% to the builder.

Now, you can pay TDS on the amounts paid I.e. 5000 and 96000. Make sure you adjust these amounts in the total consideration payable to the builder. This would be a part of the total consideration. ( Amount payable = 1.2287296 crores - 5 lacs - 96 lacs - 5k - 96k )

You can file one Form 26QB for one date. Separate Forms have to be filed if payments are on different dates.

Lakshita Bhandari
CA, Mumbai
2396 Answers
88 Consultations

5.0 on 5.0

As per the Income Tax Act

1. Tax is to be paid on the entire sale amount. For example, if you have bought a house at Rs 55lakh, you have to pay tax on Rs 55lakh and not on Rs 5lakh (i.e. Rs 55lakh – Rs 50lakh). This is applicable even when there is more than 1 buyer or seller.

2.The buyer has to deduct TDS at 1% of the total sale consideration. Note that the buyer is required to deduct TDS, not the seller.

3.This TDS has to be deposited along with Form 26QB within 30 days from the end of the month in which TDS was deducted.

4.After depositing TDS to the government, the buyer is required to furnish the TDS certificate to the seller. This is available around 10-15 days after depositing the TDS.

Use the link Below for more Clarification


Deepak Rathore
CA, New Delhi
31 Answers
5 Consultations

4.3 on 5.0

You can accumulate the payment of June month and pay TDS at once.

Assume above installments as 99%.

Abhishek Dugar
CA, Mumbai
3576 Answers
165 Consultations

5.0 on 5.0

Dear Sir,

You need to deduct TDS@1% of 96 lacs and 5000. TDS figure will be 96000 and 50.Club the payments made today i.e. 96.05 lacs and deduct TDS of 96050. Make payment to builder of amount 95.08 lacs. If TDS of Ist installment was not deducted deduct in the same way.

Don't do grossing up of the amount.


Vivek Kumar Arora
CA, Delhi
1858 Answers
63 Consultations

5.0 on 5.0


you have to deduct tds on actual amount payable if total purchase value exceeds 50 Lakh, once you deduct TDS then you have deposit it within 30 days from a month in which TDS deducted i.e. 30 July in your case.

You are suppose to pay 1,00,05,000(including proposed 5000) so TDS liability will be 1,00,050. but you have already paid 1 Cr without deducting TDS so you have to treat as already paid amount is net of TDS and it will be treated as 99%.

You can also club 5000 payment with amount already paid.

Now you have to pay TDS from your own pocket and reduced this amount from next payment to builder.

Total TDS will be 1,01,061(1,00,05,000 is 99%then 100% 1,01,06,061)

Hope it will be help ful


CA Varun Chawla

Varun Chawla
CA, Ghaziabad
72 Answers

5.0 on 5.0


Deduct taxes on every single transaction and report it in 26QB separately . One 26QB would work.



Damini Agarwal
CA, Bengaluru
270 Answers
13 Consultations

5.0 on 5.0


Please do not gross up your payments. Ideally you should have deducted 1% tds from each instalment that you paid. However, you can now deduct the entire tds from the payment that you make to the builder and deposit the same. One Form 26 QB should be okay.

Hope that clarifies.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Assume All payment done as 99% ,now deposit the full tax and file one 26 QB.

Swati Agrawal
CA, Indore
749 Answers
2 Consultations

5.0 on 5.0

For the amount of INR 5 lakh you paid to the builder, you would need to pay a TDS of INR 5050 to the Government. Thus, as rightly mentioned by you, the net payment to be made to the builder would correspond to 99% of the total payment.

Sanket Suresh Shah
CA, Mumbai
29 Answers

5.0 on 5.0

Please consider above payment as 100%. & deduct TDS of 1% on it. (1% on 5lac & 96 lac).

TDS needs to be deducted at the time of Payment.

Further you are required to fill Form 16B. (TDS certificate), you can download it from TRACES after submitting form


Form 26Qb is TDS return cum challan of TDS deposit to government by buyer.

Please get help from professional for filing Form 26QB to avoid any litigation at later stage.

Chirag Maru
CA, Raipur
94 Answers

5.0 on 5.0

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