• 1 % extra TDS on immovable property

I bought a under construction property in 2016 and my consideration value is Rs 43 lakhs. But total cost of the flat is crossing 50 lakhs due to amenities provided by builder. I have not received possession yet

First question:
Do I need to pay 1 % extra TDS in this scenario?

2nd question:

Is their any way to check in govt website where I can actually see whether I am defaulter in property tax.
Asked 5 years ago in Property Tax

Hi,

1. Ideally, TDS is required only if the consideration for immovable property is 50 lacs or more. Since, in your case consideration for immovable property is less than 50lacs you are not required to deduct TDS. Assuming that amenities are not in the nature of immovable properties.

However, if builder is fine with TDS, you may just deduct the TDS and leave the litigation behind

2. I am not aware of any such defaulter list.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi,

- 1% TDS is required to be deducted when cost of immovable property exceeds Rs. 50 lacs. As the cost of property is Rs.43 lacs, you are not supposed to deduct TDS.

- Check at state govt. housing development authority web site.

Thanks

Vivek Kumar Arora
CA, Delhi
4825 Answers
1030 Consultations

5.0 on 5.0

If the total value of property transaction exceed 50 lakh then you need to deduct 1% TDS you don't need to pay it from your pocket it's out of the sale consideration you will pay to builder so for example sale consideration is 50 lakh you will deduct 50000 TDS and pay the builder 4950000 and so you don't have to pay anything extra.

There is no place on government website where you can see if you have made default or not you will only come to know about it once you receive a notice from government.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !

Anyone buying real estate worth more than Rs 50 lakh has to deduct 1% of the price of the property before paying the seller.

As your property cost is not more than 50 lakh, you are not required to deduct TDS.

However, for safer side you may just deduct the tds and pay the remaining amount.

2. I'm not aware of any such website that you can see if you have made default.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hi

Please let us know as to what are the additional costs so that it could be known whether such costs shall be part of cost of acquisition of the property or not.

If the cost of the property exceeds 50lacs, you will have to deduct TDS now on the entire consideration paid.

In my opinion, there is not such facility available. In case of default, notice shall be issued to you.

Lakshita Bhandari
CA, Mumbai
5687 Answers
908 Consultations

5.0 on 5.0

Hello Sir

Tds is required to deducted when value of consideration is 50 lacs or more. In your case consideration is less than limit therefore you no need to deduct tds.

There is not any website for such.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hi,

Since the total value of the property is 43 lakhs i.e. less than 50 lakhs, you are not under the obligation to deduct tds@1%. However to avoid any litigation, you may still deduct tds and make the remaining payment to the builder.

Not sure of any defaulter list.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

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