IRWO: Important Circulars For Allottees

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A Photograph of Chennai Housing Scheme


Important Circulars For Allottees

new signAs per Govt. notification, when a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs.50 lakhs, he has to deduct TDS when he pays to the seller. This has been laid down in Section 194-1A of the Income Tax Act.

Here are the requirements of this section:

(i).The buyer has to deduct TDS @ 1% of the total sale consideration. Note that the buyer is required to deduct TDS, not the seller.

(ii). No TDS is deducted if sale consideration is upto Rs.50 lakhs. If installments are being paid, TDS has to be deducted on each installment.

(iii). Tax is to be paid on the entire sale amount. For example, if the buyer has bought a house at Rs.55 lakhs, he has to pay tax on Rs.55 lakhs and not on Rs.5 lakh (i.e. Rs.55 lakh – Rs.50 lakh). This is applicable even when there is more than 1 buyer or seller.

(iv). Buyer do not need to obtain a TAN (Tax Deduction Account Number).

(v). Seller is to provide PAN. PAN of buyer is also mandatory. TDS is to be deducted at the time of payment or at the time of giving credit to the seller, whichever is earlier.

(vi). PAN No. of IRWO is AAATI0400L.

(vii) This TDS has to be deposited along with Form 26QB within 30 days from the end of the month in which TDS was deducted.

(viii). After depositing TDS to the government, the buyer is required to furnish the TDS certificate in form 16B to the seller. This TDS certificate can be generated & downloaded from TDS webportal within 15 days of depositing the TDS.

(ix). The buyer is required to obtain Form 16B and issues this TDS certificate - (Form 16B) to seller.

(x). Amount deducted from payment made to seller towards Income Tax shall be considered as paynment from Buyer to seller only on receipt of TDS certificate in form 16B by the seller.

(ix). In those cases, where initial cost of DUs is less than Rs 50 Lakh and cost exeeds Rs 50 Lakh during construction, TDS @ 1% of the total sale consideration should be deducted from subsequent instalments.

new signNew housig Scheme has been opened for other Indian Nationals.

Following Group Housing Scheme has been opened for Railway employees and other Indian Nationals

1.Moradabad Ph.III.
2.Jaipur Ph.III.
4.Sonepat Ph.II
5.Zirakpur Ph.II
Priority shall be as under:-
(a). IRWO Members.
(b). Blood relations of IRWO Members viz. parents, spouse, children, grand children including adopted children, brother (s) & sister(s) including their spouses (as co-owners).
i) Employees of Central Governing, Central Governing PSUs and employees of Statutory Authorities & Autonomous Bodies under Central Government.
ii) Army/Air Force/Naval Personnel.
iii) Employees of State Governments, State Government PSUs and employees of Statutory Authorities & Autonomous Bodies under State Government.
iv) Employees of Nationalised Banks.
(d) Other Indian Nationals

new signRevision or rate of delay Charges.

As per IRWO Rules delay charges are payable by member in case of delay in payment of installment by more than 7 days from the due date. Rates of delay charges are indicated in the project brochure. Keeping in view the rate of interest charged by banks on housing loan, rate of delay charges was revised @ 9.50% p.a. from 1-4-2018 onwards.

Members are aware that as per IRWO Rules, in case of delay in payment of two consecutive installments, DUs allotted to them are liable to be cancelled, after issue of notice for 60 days followed by 30 days. However, if a member makes a request for extension of date of deposit of installment, to enable them to arrange funds, then the date of deposit of installment is extended considering merit of the case. However, this is subject to payment of delay charges from the due date of deposit of installment upto the actual date of deposit.

It has now been decided if the allottee do not pay installment within 6 months from the due date of deposit of installments, whatsoever the reason may be, he will be liable to pay delay charges @ 9.50% p.a. alongwith penal charges @ 3% p.a. from the due date of deposit upto actual date of deposit. However, this will be without prejudice to cancel DU allotted to allottee on account of non-payment of installments. This comes in force with immediate effect.

new signApplicability of GST from 1-7-2017.

Members are aware that GST is made applicable on variuos goods and services which includes construction services also from 1/7/2017. As per GST Act GST is payable in the follwing type of services at the rates indicated against each, Please click here for downloading details

new signRevision of Transfer Fee

In case of sale/transfer of DU, prior approval of IRWO is required. For seeking approval for transfer of DU, presently transfer fee is payable as under:-
i) Type I & II - Rs.10,000/- each by Transferer and Transferee.

ii)Type III – Rs.15,000/- each by Transferer and Transferee.

iii)Type-IV - Rs.20,000/- each by Transferer and Transferee.

Transfer fee in case of Transfer/Sale/Gift Deed have now been revised as under:-

a) In case of Transfer/Sale/Gift Deed following fee shall be charged:-
i) Type I & II – Rs.10,000/- each by Transferer and Transferee.

ii)Type-III - Rs.15,000/- each by Transferer and Transferee.

iii)Type-IV – Rs.20,000/- each by Transferer and Transferee

(b) In case of transfer within the Blood Relations as defined in Para 2(g) of IRWO General Rules, Transfer Fee payable by Transferer and Transferee shall be reduced by 50%. However, this concession shall be given only once. Full transfer fee shall be charged in case of subsequent transfers even within blood relations.

(c) In case of issue of NOCfor transfer after execution of Sale/Transfer Deed (Post facto), Transfer Fee shall be charged at double the rates as mentioned above. However, in respect of original allottee, reduction of fee from double to a lower value can be considered by IRWO on merits of the case

(d) No “Transfer Fee shall be charged in case transfer is on account of demise of the allottee/co-allottee and transferee is a blood relation as defined in Para 2(g) of IRWO General Rules”.

Payments of Instalments through RTGS
Relevant Instructions
Format in which Information is to be sent to IRWO through email

Aallottees remitting dues by RTGS must ensure that the Sender to Receiver Information – item (vi) of IRWO's instructions – is sent immediately to IRWO by post or preferably by email to agmfin at to enable us to link the remittance. The information may be sent both if the RTGS request is handed over personally in the Remitting bank and also if the transaction is effected through Internet Banking.

Last Update : 08 Feb 2019