3BHK Villa Installment Payments

[spdeepak]

Dear Sir/Madam,

I have been allotted a 3BHK Duplex Villa in Alur Phase-2 BDA project. The total cost of 3BHK Duplex Villa is 50 Lakhs Ruppes. And I also come to know that BDA is going to charge car parking separately around 2 Lakhs Ruppes.
So, for an individual the total cost is not less than 50 Lakhs ruppes irrespective of car parking. And BDA has asked allottee to pay the remaining amount including BWSSB and BESCOM charges in four installments.

does allottee require to deduct 1% TDS (Referring below notification) from the remaining amount and pay the same to the Income Tax Department ?


Regards,
Deepak





Ref 1 ) Notification of Income Tax Dept. No. F.No. ITO/PR/TDS/2013-14, dated
05.06.2013 to comply with the amends brought to the Section 194 IA of
the Income Tax Act, 1961-TDS on sale of immovable properties.

[msn1270]

Hi Deepak

As per Section 194-IA of the Income Tax Act, any Real estate transaction where the value is more than Rs. 50 lakhs, Buyer has to deduct 1% of the Total Amount(For the entire amount, not just the amount exceeding Rs. 50 lakhs (includes car park, club house, deposits....etc). ( Say Transaction value is Rs. 55 lakhs, TDS to be deducted is Rs. 55,000/-) as TDS and pay to the Income Tax Dept. This rule is effective from the financial year 2013-14. If you are paying in installments, TDS also to be deducted on the pro-rata basis). Find the attached reference payment schedule xls sheet.

Also remember, if the seller doesn't quote his PAN No for the Transaction, TDS to be deducted is 20% of the Total amount.

[spdeepak]

Thank you sir. I saw few of the BDA announcemnts for 1% TDS deduction for E-auctioned properties. But BDA has not communicated any thing related for 1% TDS deduction wrt villa allotment. Any idea which department in BDA I need to consult for confirming this. I am also not sure how other allottees are addressing 1% TDS deduction.

[msn1270]

Whether its individual house/flat/villa/plot makes no difference. For all transaction its applicable.
Definitely BDA would have mentioned some contact person name/designation & the Number in your allotment letter.
Or they may send a separate communication for you on the payment details later.