How each instalment is worked out
Instalment = flat price × stage %
Pay the builder = instalment + GST − TDS
On an ₹80 lakh flat, a 10% stage is ₹8,00,000. GST at 5% adds ₹40,000. You hold back 1% TDS (₹8,000), so the builder gets ₹8,32,000 and you deposit the ₹8,000 with the government yourself.
GST on a flat
| Flat | GST |
|---|---|
| Under construction | 5% (no input tax credit) |
| Affordable home under construction: carpet area up to 60 m² in metros or 90 m² elsewhere, and price up to ₹45 lakh | 1% |
| Ready to move, with completion certificate, or resale | No GST |
GST is charged on each instalment as you pay it. Charges billed separately, like club membership or maintenance, can carry 18% GST. Check your demand letter.
TDS when the flat costs ₹50 lakh or more
- If the total price, including parking, club and other charges, is ₹50 lakh or more, you must deduct 1% TDS from every instalment (section 393 of the new Income-tax Act, earlier section 194-IA).
- TDS is on the amount before GST when the builder shows GST separately.
- Deposit it online with Form 26QB within 30 days from the end of the month you pay. You need the builder’s PAN, not a TAN. Then download Form 16B for the builder.
- Joint buyers each file their own 26QB for their share, for example 0.5% each for a 50:50 flat.
- Paying late costs interest of 1–1.5% a month and a late fee of ₹200 a day, up to the TDS amount, so mark the date you pay.
Plans you’ll see
- Construction-linked: 10% at booking, then a share at each slab or stage. You pay as the building rises.
- 10:90 or 20:80: a small amount at booking, the rest on possession. Often tied to a bank “subvention” deal.
- Down payment: most of the price within a few weeks, usually for a discount.
To see the EMI once the bank starts paying the stages, use the home loan EMI calculator.
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Questions people ask
Is TDS deducted on GST when buying a flat?
No. When the builder’s invoice shows GST separately, TDS of 1% is on the amount without GST (CBDT Circular 23/2017).
When is Form 26QB due for each instalment?
Within 30 days from the end of the month in which you pay that instalment. A payment on 10 March needs its 26QB by 30 April.
Is TDS needed if the flat costs less than ₹50 lakh?
No. TDS applies only when the total consideration, including parking, club and similar charges, is ₹50 lakh or more.
Does my data go anywhere?
No. The plan, including any photo you upload, is read and saved only in your browser on this device.