My relative has bought an UNDER CONSTRUCTION flat in chennai. The total consideration of the flat is around 95 Lakhs (UDS is Rs 30Laksh and Construction Cost is Rs 65 Lakhs). Is the TDS of 1% under section 194IA applicable here......i.e. this section says that if the total consideration of the immovable property is above rs. 50 Lakhs then the buyer should deduct TDS at 1% of of the total consideration and deposit into government account. Is this 1%TDS applicable for this flat as well....considering that it is Under construction?
And further is it applicable only if the UDS is above rs. 50Lakhs OR is applicable if the total cost of the flat including UDS and COnstruction cost is above 50-Lakhs.
Please help clarify on this. Thanks.