CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

I am buy­ing an un­der-con­struc­tion prop­erty which is al­ready booked by a per­son in Ban­ga­lore. As per the process, I have to pay a to­ken ad­vance, sign an MoU, pay 10% of sale con­sid­er­a­tions, sign an as­sign­ment agree­ment with the builder, seller and go for sale deed reg­is­tra­tion (this will hap­pen in July/Au­gust 2014). The to­tal sale con­sid­er­a­tion of the prop­erty is ` 1.2 crore. At what stage should I deduct TDS from the sale con­sid­er­a­tion and give the TDS to the seller? The seller is clear­ing all the dues to the builder/de­vel­op­ers prior to sign­ing the agree­ment.

—Ya­teesh Khar­banda As per the re­cent amend­ment of the law, any per­son who buys a prop­erty has to deduct tax from the pay­ments to be made to the seller at the rate of 1% of the sale con­sid­er­a­tion, in case the sale con­sid­er­a­tion ex­ceeds ` 50 lakh. This has to be done ei­ther at the time of credit of the amount in the books or at the time of pay­ment.

Since in­di­vid­u­als do not main­tain any books of ac­counts, they have to deduct tax at the rate of 1% at the time of pay­ment. The tax so de­ducted has to be de­posited with the gov­ern­ment within seven days from the end of the month in which the pay­ment for pur­chase of prop­erty is made. The pay­ment has to be made in a spe­cial form num­ber 26QB, which is a chal­lan-cum-re­turn.

The de­tails of the above chal­lans have to be filled online. The pay­ment for the same can ei­ther be made online or off­line in any bank. It is nec­es­sary to fill in the PAN de­tails of the buyer and seller. In case you do not have PAN de­tails of the seller, you will have to deduct tax at the rate of 20%.

The buyer has to is­sue a TDS cer­tifi­cate in Form No 16B within 15 days from the due date of fil­ing the chal­lan cum re­turn. Pre­lim­i­nar­ily, you have to deduct the TDS as and when you pay to the seller. How­ever, your mat­ter seems com­pli­cated. So I would ad­vise you to take the help of a pro­fes­sional char­tered ac­coun­tant. The pay­ment has to be made through the web­site of NSDL. An e-tu­to­rial on stepby-step guide for pay­ment of TDS on prop­erty trans­ac­tion is given on the fol­low­ing link https://www.tin-nsdl.com/ TDS/TDS-In­tro­duc­tion.php My wife is a home­maker who will take up a job later. Can I, in fu­ture, add her name to my home loan ap­pli­ca­tion. Can we pay both pay the bank and get tax ben­e­fits?

-Ra­man Singh It seems your wife is not a coowner of the prop­erty and has not con­trib­uted to­wards the cost of the flat. In that case, she can­not claim any tax ben­e­fits in re­spect of the home loan. In or­der to add her name as a prop­erty co-owner later, you will have to pay stamp duty and reg­is­tra­tion charges. It is not pos­si­ble to add her name as a loan co-bor­rower later in the ex­ist­ing loan. How­ever, if you still want to make her a co-bor­rower, you will have to fore­close the cur­rent loan where you are the sole owner and bor­rower, and file a fresh loan ap­pli­ca­tion.

If you have not yet pur­chased the prop­erty and availed the loan, you can still make your wife a co-owner and a co-bor­rower though she is not earn­ing now, so that she can claim tax ben­e­fits once she starts earn­ing. Harsh Roongta is CEO, Apna Paisa. He can be reached at ceo@ap­na­paisa.com

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