Selling an Under-Construction Property: What Happens to Paid TDS & GST?

General
,
1

Has anyone here sold an under-construction property mid-way through payments?

I’ve already paid TDS and GST — would love to know:

  1. What happens to the taxes I’ve already paid?
  2. Do I have to claim it back from the government?

Would also appreciate a reference to a CA who’s handled such a transaction.

2

When you sell an under-construction property midway:

  • Taxes Already Paid (GST):
    The GST you’ve paid to the builder gets added to your property’s purchase cost (principal paid + GST). This combined amount will reduce your capital gain, thereby lowering your tax liability.

  • TDS Already Paid:
    The TDS your buyer deducts on this new sale will be available as a tax credit. You can adjust this against your capital gains tax payable.

Simply put, you’ll calculate capital gains as:

Sale Price – (Principal + GST paid)

Then, use the TDS deducted by your buyer to reduce your overall tax payable.

3

yea. It gets added to the cost of the property. So you sell the property with consideration value that includes TDS and GST paid. Don’t have to repay it later.