Dear all,

Recently I have booked a flat at Mohali and gone through agreement on 14th Oct 2016 under installment payment. I made first installment to builder on 18th Nov through a bank loan. TDS has not been deducted from the builder. Whole installment money has been transferred to Builder.

I have few doubts and these are as follows,

  1. Who should pay the TDS in current situation? Builder or me for 1st Installment.
  2. Is there any way to pay the TDS from my side without any late fees, interest as the TDS has not been deducted yet?
  3. Can I ask Builder to pay the TDS, as builder (seller) have got the 1st Installment without any TDS deduction?
  4. .If I need to pay the TDS then what should be the late fees and interest for ...... 17.0 lacs payment that has been made to builder.

Waiting for your suggestion and advice.

Sameer K

Posted 3 years, 11 months ago by sameer kapoor

Sameer I have solution for this thing. You can contact to Mr. Neeraj bhagat & CO. 

For more information visit at this website removed


Posted 3 years, 11 months ago by Neeraj bhagat

Neeraj, in your profile provide your contact details and in classifieds of tikshare you put your ad. Here provide a solution, direct marketing is useless, believe me.

Moderation on tikshare is very strict. Please refrain to avoid blocking.

Look at my replies, I get 90% clients from tikshare. People contact based on our responses.

Hope you understand, thanks for being an active participant.

Posted 3 years, 11 months ago by CA Pulkit Sharma

Hi Sameer,

You are responsible for deduction of TDS and also for paying to government. Similar case happened with one my client.

But in his case he instructed bank to deduct TDS and pay to builder. Bank used to credit TDS amount his bank account for making payment.

Since you have already made the full installment, you can pay TDS from your pocket and deduct TDS from next installment amount along with additional TDS amount.

Income Tax law put an interest rate of 1% for the period of non-deduction and 1.5% for the period TDS was deducted but not deposited to the account of Government.

In my opinion you need to pay interest at 1.5% for 3 months (nov, dec and Jan) also late filing fee of Rs. 200 per day from 7th December to the date of return filing (TDS payment and providing details of payee).

Hope it solves your issue, do get back for any further queries.

Posted 3 years, 11 months ago by CA Pulkit Sharma

Hi Sameer,

You have made an installment of Rs. 17 lakhs. TDS amount should be Rs. 17,000. Interest should be calculated at the rate of 1.5% per month including the month of making installment payment.

Formula to calculate interest on late payment of TDS on purchase of Flat

Interest = TDS amount ( 1% of installment paid ) * 1.5% 
(interest rate on Late payment of TDS) *3 months
Interest = 17000*1.5%*3
Interest to be is Rs. 765.

Formula to calculate late filing Fee for not filing the TDS return on purchase of flat

Number of day delayed * 200 Rs. or Tax amount whichever is lower.

So you need to calculate the period of delaying in payment of TDS.
For instance suppose you make payment than you have delayed
by ( 25 Jan 2017 - 8 Dec 2016) 49 days.

So the late filing fee will be 49*200 = 9800 Rs.

Posted 3 years, 11 months ago by Rahul Rai

Dear Sameer 

In your case my opinion is as follow:

1. Builder was liable to pay TDS as he is getting 100% of installments.

2. You can pay the TDS yourself but it will attract lates fees and interest to avoid that i can suggest you a way out but not in public portal kindly contact at my email, but yes you can avoid such fees and interest.

3.Yes you can rightly ask the builder to pay TDS.

4. Interest for TDS on Rs. 17,00,000 will depend upon your demand date of your first kindly mention that.

I hope my opinion is helpful 

Regards CA Bhuwan Sharma




Posted 3 years, 11 months ago by NRO0263978 BHUWAN CHAND SHARMA

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