Don’t Overlook TDS For Buying Property: Last-Minute Checklist!

Introduction: The Importance of a Final Walkthrough

Why’s the final walkthrough a big deal? It’s simple, really. You want to know that the home’s in good shape before you settle in. Start with the basics – fixtures, plumbing, electrical points, and that fresh paint look. Then, double-check if the repairs you agreed on are actually done. Don’t forget to measure built-up and carpet areas. And hey, ensure all your documents are in order, especially tax compliance, before you sign on that dotted line. If you’re dealing with NRIs, remember their TDS rules are a bit different. So, do yourself a favor. Bring your lawyer and the seller along for the walkthrough.

Quick TDS facts to verify during the walkthrough

Scenario	TDS rule
Resident seller (sale > ₹50 lakh)	1% under Section 194IA
Selling to an NRI	TDS as per Section 195; higher withholding may apply
Payment proof	Form 26QB and TDS certificate (26QC/16B)

Checklist items tied to tax and handover

• Check the seller’s PAN. Ensure TDS will be deducted at the right rate and grab the challan along with Form 26QB receipt.
• Make sure all municipal and utility dues are paid up. Get those no dues certificates.
• Look into occupancy and completion certificates. Also, confirm parking and common area allocations.
• If you’re buying elsewhere, like Bangalore or Delhi NCR, know that requirements can be different. Better consult with local RERA and tax advisors.

Need a detailed possession checklist? Use the full flat-possession checklist to dodge surprises and link tax compliance to handover Complete possession checklist.

Checklist Essentials: Key Areas to Inspect

Before you grab the keys, do a solid check: structural issues, papers, and TDS duties. Look out for cracks, odd flooring, or anything that hints at water damage. Check the sale deed, encumbrance certificate, occupancy certificate, and conditional clearance. If there’s an applicable TDS rule, like Section 194IA, make sure Form 26QB is filed. For more info on handling TDS, check out [Source]. For extra TDS info, visit us at Understanding TDS on Purchase of Property.

Plumbing, Electrical and Finishes
Don’t just take their word for it. Run the taps, check for leaks, and see if the drains are working right. Turn on the lights and test power points. Be sure the AC points are labeled too. Walk through doors and windows, check the tiling. And hey, ask the builder for MEP drawings and warranties, don’t be shy about it.

Quick inspection table

Area	What to check	Action
Structure	Cracks, plaster, alignment	Document; hire structural engineer
Plumbing	Leaks, pressure, drainage	Photograph; request repairs
Electrical	Earthing, switches, load	Test circuits; get electrician report
Legal	Title, OC/CC, TDS filing	Verify docs; file TDS if needed

Understanding TDS for Buying Property in Hyderabad

So, what’s TDS anyway? Here’s the scoop: when you purchase property above ₹50 lakh, you gotta deduct and pay 1% of the sale price under Section 194IA. Make sure you file that TDS and Form 26QB on time, or you might face penalties [Source].

Key checks for Hyderabad buyers

• First, verify the sale deed’s value and calculate that 1% TDS.
• Confirm the seller’s identity and PAN, don’t get stuck paying extra.
• Collect Form 16B from the seller post TDS payment.
• If you’re an NRI, know about the special rules tied to “tds for nri buying property” like what happens with repatriation or capital gains. Check up on NRI tax guidance before you settle that final payment [Source].

Quick comparison table

Item	Rule
Threshold	₹50,00,000 and above
TDS Rate	1% under Section 194IA
Form	26QB (payment) and 16B (certificate)
Due	Within 30 days of deduction (online)

Practical tips and cross-market notes
Check RERA and title documents carefully. Always keep TDS receipts with the sale deed at registration. If you are an NRI or buying for one, keep tax filings in mind. For procedures on paying and filing TDS online, check out property portals [Source]. And when comparing places, buying in commercial property in Bangalore or property in Delhi NCR may seem similar, but they can differ on stamp duties and local compliance. So, for Hyderabad, use your internal guides for RERA checks and registration steps.

Addressing Common Concerns: What to Do if Issues Arise

Spot a problem? Write it down. Take pictures. Seriously, during the walkthrough, if you notice defects, unfinished work, or missing certificates, list ’em down. First, document these issues neatly. Then raise them with the seller in writing. Finally, hammer out a clear solution or a price adjustment before it’s time to sign. And for anything TDS-related, get tax responsibilities clarified early. You don’t want delays or disputes cropping up last minute.

Practical negotiation points

• Ask the seller to handle repairs, and set a timeline.
• If needed, request a price adjustment or escrow for unsolved issues.
• Tie repair promises to possession or registration dates.

And don’t forget to confirm who’s responsible for depositing TDS, and when. Under Section 194IA, buyers have to deduct 1% TDS if the sale’s over ₹50 lakh [Source]. For payment and Form 26QB details, check bank guidance [Source].

If the seller’s an NRI, remember, different rules apply. You might end up needing to follow Section 195 and secure a clearance to avoid high withholding. Always check those NRI specifics before you make any payments [Source].

Quick reference table: common issues, buyer action, TDS note

Issue	Buyer Action	TDS/Tax Note
Structural defects	Ask for repair or price credit	No direct TDS impact
Missing OC/CC	Delay registration until certificate shown	Hold on TDS until sale deed is clear
Seller is NRI	Obtain PAN and tax clearance	Special TDS rules apply; verify rate

Make sure to get everything in writing and update the sale deed with any fixes you’ve negotiated. For more detailed reading on TDS processes, check out our overview on TDS for buying property [Understanding TDS on Purchase of Property].

Moving Forward: Final Thoughts and Next Steps

Last but not least, after all that walkthrough fuss, here’s your final checklist:

• Double-check that sale deed, possession letter, and OC/CC. Sign any acceptance receipts and note down those pending defect repairs.
• Pay those final installments only after you’ve cleared the title and got your NOC confirmations.
• If you’re not sure about TDS procedures, consult official guides before you fork over that withholding tax. [Source]

Tax actions to complete

• Calculate your TDS at 1% as soon as the property’s value crosses the threshold under Section 194IA.
• Remember to file Form 26QB and gather your TAN and challan receipts.
• NRIs, keep track of those specific rules for sellers who are non-residents. To guide your way, check our notes on NRI TDS obligations [Source].

Practical next steps for commercial and out-of-city buys

• If you’re eyeing commercial property in Bangalore, pay attention to GST and stamp duty timelines.
• For property in Delhi NCR, check local stamp duty rates and mutation norms before signing anything.
• NRI transactions? Ask for tax residency proofs so you don’t end up paying more than necessary, and double-check repatriation rules along with bank limits.

Quick facts table

Item	Value / Form
TDS rate	1% (Section 194IA)
Threshold	₹50 lakh
Form to file	Form 26QB; 26QC for rent

And as you settle in, keep important records handy, digital challans, Form 16B, copies of your sale deed.

• Let your lender know you’ve moved. Update your insurance too.

FAQ

1. What is the importance of a final walkthrough before purchasing a home?
   The final walkthrough ensures that the property is in good condition, that all agreed-upon repairs have been made, and that all necessary documents are in order.
2. What key areas should be inspected during a final walkthrough?
   Key areas to inspect include structural elements, plumbing, electrical systems, and necessary legal documents such as the sale deed and occupancy certificate.
3. What are the TDS requirements when purchasing property in Hyderabad?
   When purchasing property above ₹50 lakh, a TDS of 1% needs to be deducted under Section 194IA, and Form 26QB needs to be filed promptly.
4. What should I do if I find issues during the final walkthrough?
   Document any issues, raise them with the seller in writing, and negotiate a solution or price adjustment before finalizing the deal.