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Hi Friends

We have finalized one residential property, and made the sale agreement as well along with registration of sale agreement in sub registrar office.

We have paid around 10lacs to the seller as a down payment . Total value is 60lacs. Remaining 50lacs we will make payment at the time of sale deed registration (40 Lacs loan and 10 Lacs from our pocket)

I have couple of questions with respect to TDS on sale of property

1.) when do we need to deduct the TDS of 1% of total sale consideration? At the time of registration of sale deed?

2.) or at the time of sale agreement also I have to deduct and pay the rest of the amount? If yes, as I have already made the advance payment of 10lacs, what is the procedure to do so?

Thanks in advance

Bhaggy:)

Hi Friends

Would greatly appreciate your quick response on this


Thanks in advance

Hi Bhaggy,

TDS will be applicable to Registration value of property which is more than 50 lakhs.

This should be paid during the registration of sale deed, and your property value is 60 lakhs hence DD to be drawn for amount of 6000/- and will be mentioned in the Sale seed.

Advance amount is just down payment given to seller as confirmation and once sale deed is done you can pay only 50 lakhs and can adjust advance amt paid. If you have given 10 lakhs through cheque or DD that needs to be mentioned in sale deed. If cash given that also needs to be mentioned.

Rgds
Swamy

Hi Swamy

Thanks for response

"This should be paid during the registration of sale deed, and your property value is 60 lakhs hence DD to be drawn for amount of 6000/- and will be mentioned in the Sale deed "

I have couple of doubts in the above statement, would like to get it clarified
1. TDS is 1% of total sale value (60,000 for 60,00,000) correct?
2. It can be paid as DD or through net banking - using form 26G correct?


And as you have mentioned we should mention all the money transaction details in sale deed something like below

1. Cheque as advance for 10 lakhs
2. TDS to be submitted to government for 60,000rs
3. Remaining amount to be paid = 49,40,000 rs

Please let me know your thoughts on this one

Thanks in advance for your help

Regards
Bhaggy

TDS can be paid in the bank and the acknowledgement is required for registration.

In the sale deed you can enter the TDS paid as a part of total payment to the seller, like the following;

The buyer has paid the seller a total sale consideration of Rs.60,00,000/- in the following manner;

1. An amount of Rs.10,00,000 through DD on this date
2. Amount Rs.49,40,000 as bank transfer on this date
3. Amount of Rs.60,000/- as TDS bearing acknowledge number ....

Please contact a lawyer, they have the correct format for it.

Hi Simran

Thanks for the clarifications

Cheers:)