POSTED BY July 20, 2013 11:53 am ONE COMMENTON
I have purchased an under-construction property worth Rs. 98L in December 2012. I have taken the home loan from HDFC. Now the recent notification from tax department is that 1% TDS is to be deducted from payments being made to the developer on or after June 1, 2013. I would like to seek clarification from experts here:
1. The notification say 1% TDS to be deducted for the property costing above 50L. So in my case it is applicable. Should I deduct the TDS from every payment I make from hereon or should I start deducting TDS once the payment to developer exceeds 50L, which means effectively I shall be deducting 1% from 48L (amount above 50L) or irrespective of the exceeding amount?
2. Since the payment is made by bank, should the bank deduct 1% and issue TDS certificate to developer or I have to ask bank that whatever payment is asked by the developer, bank should only pay 99% of the demand raised and I shall submit 1% to tax department on my won and directly issue the TDS certificate to the developer?
3. What if bank pays the developer in full without deducting the TDS, can I still deduct TDS in one go while making the final payment to developer, so the whole applicable TDS will be deducted at the end rather than deducting every time.