Tds on flat purchase with sale price more than 50 lacs
Pratmit85
(Querist) 07 October 2017
This query is : Resolved
I have the following questions on the payment of TDS for the purchase of a flat worth more than 50 lacs.: 1) Who pays TDS - buyer (me) or the seller? 2) Since I am an Indian national living in Germany, how much is the amount in my case - 1%, 20% or more @ TDS? I have an Indian passport, PAN card and Indian voter ID with NRE and NRO bank accounts in SBI. Many thanks for your answers in advance..
sanjeev kumar goel
(Expert) 09 October 2017
Dear Prateek in this case you being the buyer has to deduct TDS @1% on total sale value and has to deposit to government account with the name and PAN of seller. This amount of TDS will be mentioned in the sale deed and you will pay to the seller by deducting this amount from total payment. As you are buyer so there is no difference in rate of TDS etc.
Pratmit85
(Querist) 09 October 2017
Thanks Sanjeev! Best Regards, Prateek
Dr J C Vashista
(Expert) 10 October 2017
In addition to the expert advise of Mr. Sanjeev Kumar Goyal, it would be better to take additional advise from a tax consultant.
Rajendra K Goyal
(Expert) 10 October 2017
Agree with the expert sanjeev kumar goel.
sanjeev kumar goel
(Expert) 11 October 2017
Dear Dr J C Vashista for your kind information we would like to tell you that we are Tax Professionals and doing practice since more than last 40 years. We are here as an expert because this field is related with our profession and not like other non professionals.
Pratmit85
(Querist) 13 October 2017
I have an additional question. I would like to pay the total amount in 3 parts - 1st one as the token-amount, second one after the agreement signing and the final part at the day of registration. All of these would be carried out within a max. 2 months' duration. Do I have to pay 1% TDS on each of these amounts separately (that is 3 times) or can I simply pay on the entire amount after the agreement signing?
sanjeev kumar goel
(Expert) 13 October 2017
Dear Prateek there is no need to deduct TDS at each time you pay to seller. At the time of registration of property and final payment you have to deduct TDS and balance amount to pay to the seller. The TDS amount and deposit details will me mentioned along with other payment details in the registry documents or sale deed.
Pratmit85
(Querist) 13 October 2017
Thanks again Sanjeev for your help. I was told that I need to pay 1% TDS on each instalment. But it means (from your reply) that the pattern in which I make my parents is not actually termed as 'instalments', is it? Would it possible to directly contact you via e-mail or phone? As your replies are very helpful and very mush to the point, I would like to have your professional advise also in future during my deal.
sanjeev kumar goel
(Expert) 13 October 2017
Thanks. Part payments which you are doing are not installments. You have to deduct TDS from total payment not on part payments. Sure Prateek you can contact me on phone at 09899390850 or may directly write me on mail. My mail ID is adv.sanjeevgoel@gmail.com
Regards
