Industry
Are you a broker or a developer? The books are completely different
A broker earns commission, while a developer runs projects that last years. Much advice blends the two, so find your side below. Because single transactions are large, go through each significant deal with Deepak Mittal before it closes.
Side by side
| Point | Broker or agent | Developer or builder |
|---|---|---|
| Main income | Commission on each deal | Sale of units, over a project's life |
| Main records | Deal register, invoices and TDS statements | Project cost ledgers, customer ledgers and agreements |
| GST | 18% on commission, where registered | For residential real estate projects, 1% on affordable and 5% on other apartments, including commercial units within such projects, without input tax credit. Other projects differ, so confirm for yours |
| TDS you face | Clients may deduct on your commission. Section 393(1) of the 2025 Act shows 2% for commission or brokerage, above ₹20,000 | Buyers may deduct on purchases, and you deduct on contractors and brokers |
| Main risk | Unmatched TDS, cash receipts and unreported deals | Wrong profit timing, and project funds used elsewhere |
If you are a broker
Keep one register of every deal, showing:
- Property and parties, at a level you can defend
- Commission agreed, and any sub-broker's share
- Invoice raised, and GST if applicable
- TDS deducted, and whether it appears on your statement
- Date and mode of receipt
If you share commission with another broker, record it properly, as TDS and GST questions may follow. Avoid cash deals, as they create risk for you and your clients. The presumptive scheme for businesses in section 58 of the Income-tax Act, 2025 excludes those earning commission or brokerage, so plan on keeping proper accounts.
If you are a developer
- Keep a separate cost ledger for each project: land, approvals, construction, finance and marketing
- Keep a customer ledger for each unit: agreement, payment schedule, receipts and TDS
- Know your RERA position. Under section 4(2)(l)(D), as explained by commentators, 70% of amounts realised from allottees is to go to a separate account, with withdrawals tied to progress and certified
- Agree how revenue is recognised with Deepak Mittal before the first sale, because it affects reported profit
- Check the input conditions before relying on a GST rate
TDS on property transactions
This applies widely to buyers, and brokers are often asked about it. Under section 393(1) of the Income-tax Act, 2025, tax at 1% of the consideration or stamp duty value, whichever is higher, applies to transfers of immovable property other than agricultural land where that amount is ₹50 lakh or more. The e-filing portal's form mapping guide shows Form 141, a challan-cum-statement, replacing Form 26QB. Non-resident sellers follow different rules, so discuss that case with Deepak Mittal.
As a broker, keep to recording what happened in your own deals. The buyer deducts and deposits this tax, so point buyers to the income tax portal (opens in a new tab) rather than advising them on it yourself.
Common mistakes
- Brokers treating all receipts as commission, including token money held for a client.
- Developers pooling cash across projects, which breaks RERA and hides each project's profit.
- Unit cancellations with no proper record, which complicate tax and GST.
- Entering a joint development deal before working out its tax position. These have specific treatment.
Questions to ask Deepak Mittal before work starts
- Do you work with brokers or developers? They are different specialisms.
- For developers: how do you handle project accounting and RERA certification?
- Who is qualified to certify what? Certification for RERA may need a specific professional.
- For brokers: how will you match each deal with TDS?
Sources checked, November 2026
- Notification 11/2017-Central Tax (Rate), consolidated (opens in a new tab) (read at source, 10 November 2026; apartment rates unchanged by the September 2025 notifications)
- Income-tax Act, 2025, Gazette copy (opens in a new tab), sections 58 and 393 (read at source)
- e-filing portal form mapping guide (opens in a new tab) (official), Cyril Amarchand on RERA's 70% rule (opens in a new tab) (secondary)
Broker or developer with records to sort out?
Tell us whether you are a broker or developer, your structure, how many deals or projects are open, and what you need help with.
