1% TDS on the total sale price or individual amounts

I am purchasing a flat at DLF New Town Heights Kolkata worth more than 50 lacs. This flat is on freehold as the seller has not yet taken the possession letter. As a standard resale procedure in DLF and also as agreed with the seller, I have to pay a token amount to the seller (5%), then I have to pay 20% after signing the sale agreement and the rest will be payed after the seller has submitted his documents to DLF for name transfer. This entire process shall not last more than 2 months. My question is: it is necessary to deduct 1% TDS on all these amount or should deduct it on the total sale amount after the sale agreement is signed? I believe that these amounts (5%, 20% and the rest) cannot termed as 'instalments' with respect to Form 26QB, right?.. because instalments are generally defined in accordance with a payment scheme like for an unconstructed property, which is not my case. Greatly appreciate your help on this and sorry for the verbosity in my query..
Asked 1 month ago in Property Tax from Germany
No.

TDS has to be deducted on each and every payment irrespective of the date of transfer.

So you will have to deduct TDS @1% on all payments excluding the amount of GST to be paid.
Lakshita Bhandari
CA, Mumbai
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If actual date of agreement is unknown, consider the date of booking. It shall be at the time of payment of 5% of the amount. Obtain a letter from the builder starting the date as booking date.
Lakshita Bhandari
CA, Mumbai
508 Answers
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Yes, this can be done.
Lakshita Bhandari
CA, Mumbai
508 Answers
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No. You need to deduct TDS @1% on every installment.

Further, you can take the date of booking as the date on which you made the 5% payment.

Please feel free to call/ revert in case you need additional clarity/ guidance.

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
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Hi,

Unfortunately, you will have to deduct tax on every installment. If there is a delay in deduction and payment of TDS, then there will be interest payable. However, there is an alternative where you deduct the entire amount of tax at the time of first installment, then the subsequent installments will not require tax to be deducted since it was already deducted earlier. This can be decided mutually by you and the seller.

You can take the date of first installment as the booking date.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
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