Hi, booked flat in Dec 2020. Flat is still under construction 95% payment done. I was not aware of 1% TDS deduction. So now I would like to what is best option for me to avoid penalty ?? I am ready to pay interest also if require.
TDS amount is 62,000
Till now no notice form IT dept and my return already processed till last year (FY 2022-23)
Hey @rahulk,
If the buyer fails to deduct or deposit the TDS amount to the government, the buyer is liable to pay interest of 1.5% per month or part of the month till TDS is not deducted or deposited. Additionally, a late fee of ₹200 per day will be levied till the date Form 26QB is not filed. The penalty can go a maximum up to the actual TDS amount.
In case you need personalised expert assistance, you can connect with the a tax expert from the team who can also help you file Form 26QB.
You can book a MEET here.
I know this and I can file Form26QB. I was looking for wayout for avoiding penalty / interest. Do you have any solution then only I will take expert assistance.
I read on internet that for my case TDS will be 0.75% instead of 1% because of special Govt GR.
https://www.mes.gov.in/sites/default/files/Scan%2026%20Jun%202020.pdf
TDS on an under-construction flat is 1% of the property’s value if it exceeds ₹50 lakhs, paid by the buyer at the time of payment to the seller.
Hey @rahulk,
The subsidised TDS rates were applicable only when the TDS was deducted timely and deposited.
In this case, you will have to deduct TDS at 1% and deposit along with the penalty amount.