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Demand letter generator: The instalment, GST and TDS, on one letter, ready to send.

Pick the construction stage and put in the agreement value. You get a demand letter with the instalment, the GST, the TDS the buyer deducts, the amount to pay and the due date, ready to print or send on WhatsApp. Every rule is cited below.

01/04Generator

One instalment, one letter to send.

The demand

₹78 lakh · TDS applies

The model agreement allows up to 45% in all at this stage.

₹23,40,000

₹11,70,000

GST on the instalment

5% under construction, 1% for affordable housing, none on instalments after the occupancy certificate.

As your agreement says

Company, buyer and bank account
Overdue? Add interest for a reminder

Leave empty for a first demand

SBI’s highest MCLR (8.95% from 15 October 2026) plus 2%, Rule 18. Lower it if your agreement says less.

Nothing here is sent, stored or used to build a profile, including the buyer’s name. It is arithmetic in your browser.

To pay₹12,16,800

The letter

[Your company]

[Project] · MahaRERA [registration no.]

To,
[Buyer’s name]
Flat [flat], [project]

Subject: Demand for payment, plinth completed

Dear [Buyer],

As per the payment schedule in your agreement for sale, the instalment due on completion of the plinth of your building is now payable. The details:

The instalment, line by line
Agreement value₹78,00,000
Paid till now (30%)₹23,40,000
This instalment (15% of the agreement value)₹11,70,000
GST at 5%₹58,500
Amount due₹12,28,500
Less TDS at 1%, which you deducton the instalment, without the GST−₹11,700
To pay₹12,16,800

Please pay ₹12,16,800 by the due date.

Please deduct TDS of ₹11,700, 1% of the instalment without the GST, under section 393(1) of the Income-tax Act, 2025, deposit it with Form 141 and send us the TDS certificate.

A payment after the due date carries interest at 10.95% a year (SBI’s highest MCLR plus 2%, Rule 18 of the Maharashtra RERA rules), from the due date until the payment.

Pay into

Account name: [account name]
Account no.: [account number]
IFSC: [IFSC] · [bank, branch]

For [your company]

Authorised signatory

TDS shows from ₹50 lakh of agreement value. The schedule, GST, TDS and interest rules are cited below the generator; check the figures against your agreement for sale. Rounded to the rupee.

Send on WhatsApp

02/04The rules

The schedule, GST, TDS and interest, with the source for each.

Read on 27 October 2026. Rates move, SBI’s MCLR most of all: treat this as a working aid, not legal or tax advice, and check each letter against your agreement for sale and with your CA.

  • Booking, before the agreement

    Up to, in all: 10%

    Step
    10%

  • Agreement for sale signed

    Up to, in all: 30%

    Step
    20%

  • Plinth completed

    Up to, in all: 45%

    Step
    15%

  • Slabs completed

    Up to, in all: 70%

    Step
    25%

  • Walls, plaster, floors, doors, windows

    Up to, in all: 75%

    Step
    5%

  • Sanitary fittings, stairs, lift wells

    Up to, in all: 80%

    Step
    5%

  • External plumbing, plaster, terraces

    Up to, in all: 85%

    Step
    5%

  • Lifts, pumps, electricals, paving

    Up to, in all: 95%

    Step
    10%

  • Possession, on the occupancy certificate

    Up to, in all: 100%

    Step
    5%
  1. 01

    The stage sets the most

    Maharashtra’s model agreement caps what may have been collected in all at each stage: 30% after the agreement, 45% at the plinth, 70% at the slabs, then 75%, 80%, 85% and 95% on the finishing stages, and the balance at possession. A schedule can ask less at a stage, never more.[1][3]

  2. 02

    No more than 10% before the agreement

    Section 13 of the RERA Act: a promoter may not take more than 10% of the cost as an advance or application fee before a registered agreement for sale.[2][3]

  3. 03

    GST: 5%, 1% or none

    5% on each instalment of a flat under construction, or 1% when it is affordable: carpet up to 60 sq m in a metro or 90 sq m elsewhere, and a value up to ₹45 lakh. Instalments paid after the occupancy certificate carry none.[13][14][15][16]

  4. 04

    TDS: 1% from ₹50 lakh

    The buyer deducts 1% of each payment when the consideration or the stamp duty value is ₹50 lakh or more, all buyers counted together, and deposits it with Form 141 (Income-tax Act 2025, section 393(1), Table item 3(i)).[9][10]

  5. 05

    TDS leaves out the GST

    When the letter shows the GST on its own line, the TDS is worked out on the instalment without it (CBDT Circular 23/2017).[11][12]

  6. 06

    Late interest: 10.95% a year

    Rule 18 of the Maharashtra RERA rules: SBI’s highest MCLR plus 2%, the same rate a builder owes a buyer for delay. SBI’s three-year MCLR is 8.95% from 15 October 2026. The generator counts it a day, on the instalment before GST.[4][5][6][7][8][2]

  7. 07

    Into the collection account

    Projects registered after 1 July 2024 keep three accounts in one bank (MahaRERA Order 56/2024), and buyers pay into the RERA collection account. Put it on the letter.[17][18]

Sources

  1. [1]Agreement for sale in Maharashtra’s model form, clause 1(c): not exceeding 10% before the agreement, 30% after it, 45% on the plinth, 70% on the slabs, 75%, 80%, 85% and 95% on the later stages, the balance at possession on the occupancy certificate — A MahaRERA-registered project’s agreement, hosted by 99acres
  2. [2]The Real Estate (Regulation and Development) Act, 2016: section 13 (no more than 10% before an agreement for sale) and section 2(za) (the promoter and the allottee pay interest at the same rate) — Government of Uttar Pradesh (official copy of the Act)
  3. [3]RERA payment schedule rules: how MahaRERA protects your instalments (the 10% cap before the agreement, instalments tied to construction stages) — Rustomjee, 15 July 2026
  4. [4]Rule 18 of the Maharashtra RERA rules, 2017 (rates of interest), reproduced: the State Bank of India’s highest MCLR plus two percent, payable by the promoter or the allottee — Maharashtra RERA guide
  5. [5]All about RERA (buyers and promoters pay the same penal interest: SBI’s highest MCLR plus 2%) — HDFC, February 2026
  6. [6]Builders also entitled to interest for late payment: MahaRERA — The Times of India, March 2018
  7. [7]Maharashtra Real Estate Appellate Tribunal order applying interest at SBI’s highest MCLR plus 2% — MahaRERA
  8. [8]Marginal cost of funds based lending rate with effect from 15 October 2026 (three years: 8.95%, the highest tenor) — State Bank of India, 15 October 2026
  9. [9]Section 393, Income-tax Act, 2025 (Table, item 3(i): 1% of the consideration or the stamp duty value, whichever is higher, from ₹50 lakh; Note 1: all buyers counted together) — Income Tax Department
  10. [10]Form 141: challan-cum-statement for TDS on the transfer of property under section 393(1), replacing Form 26QB — Income Tax Department (e-filing), April 2026
  11. [11]CBDT Circular No. 23/2017: no TDS on the GST component when it is shown separately — Central Board of Direct Taxes (copy at ITATonline), 19 July 2017
  12. [12]Your income tax queries: where GST is shown separately, TDS on a property is on the consideration without it — Financial Express, September 2025
  13. [13]33rd GST Council meeting: 1% and 5% for residential property without input tax credit; affordable housing defined (60 sq m in metros, the whole MMR among them; 90 sq m elsewhere; up to ₹45 lakh) — GST Council / PIB, 24 February 2019
  14. [14]GST on flats below ₹45 lakh (1% only with the carpet area within 60 sq m in a metro or 90 sq m elsewhere; otherwise 5%) — Bajaj Finserv, 2026
  15. [15]GST on under-construction flats explained (GST on each instalment paid before the completion or occupancy certificate, none after it) — Sunteck Realty, 2026
  16. [16]GST on residential property (none on a ready home with a completion certificate) — Brigade Group, August 2026
  17. [17]From July 1, developers in Maharashtra won’t be able to deposit homebuyers’ money in different accounts (MahaRERA’s three project accounts) — The Indian Express, 27 June 2024
  18. [18]MahaRERA mandates 3 bank accounts for each project (the first collects buyers’ money) — The Times of India, July 2024

03/04At scale

One letter is a tool. A wing of buyers is a payment plan.

When a slab is done, every buyer in the wing needs a letter with their own figures, and accounts needs to know who has paid. That is what AuraStack’s payment plans and collections do.

  • An eight-stage payment plan

    On every booking, from the agreement to possession.

  • Demand letters against it

    Each buyer’s own figures when a stage is complete.

  • Maker-checker verification

    One person records a payment and another confirms it.

  • Overdue on the dashboard

    Overdue amounts sit on the owner’s dashboard.

See the real estate CRM Start 30-day trial

Before the first instalment, the buyer asks what the flat costs all in: flat cost sheet calculator. Still tracking collections in a sheet? Excel and WhatsApp vs a real estate CRM.

04/04Straight answers

Demand letter questions builders and buyers ask.

What is a demand letter in real estate?

The builder’s written request for the instalment a stage has made due.

A demand letter is the builder’s written request for the next instalment once a construction stage in the agreement for sale is complete, such as the plinth or a slab. It states the stage, the instalment as a share of the agreement value, the GST on it, the TDS the buyer deducts, the amount to pay, the due date and the bank account to pay into.

How much can a builder demand at each stage in Maharashtra?

30% after the agreement, 45% at the plinth, 70% at the slabs, up to 95% before possession.

Maharashtra’s model agreement for sale caps what the builder may have collected in all at each stage: 10% before the agreement (section 13 of the RERA Act), 30% after it is signed, 45% on completing the plinth, 70% on the slabs, 75% on the walls, plaster, flooring, doors and windows, 80% on the sanitary fittings, staircases and lift wells, 85% on the external plumbing, plaster and terraces, 95% on the lifts, pumps, electricals and paving, and the balance at possession on the occupancy certificate. A builder’s own schedule can ask less at a stage, not more.

Is GST charged on every instalment of a flat?

5%, or 1% if affordable, on each instalment until the occupancy certificate.

Yes, on each instalment paid while the flat is under construction: 5% of the instalment, or 1% for an affordable flat (carpet area up to 60 sq m in a metro such as the MMR, or 90 sq m elsewhere, and a value up to ₹45 lakh), without input tax credit. Instalments paid after the completion or occupancy certificate carry no GST.

Does the buyer deduct TDS from every instalment?

Yes, 1%, when the flat is ₹50 lakh or more.

Yes, when the consideration or the stamp duty value is ₹50 lakh or more, counting all buyers together. Under section 393(1) of the Income-tax Act, 2025 (Table item 3(i), which took over from section 194-IA on 1 April 2026), the buyer deducts 1% from each payment and deposits it with Form 141, which replaced Form 26QB. Where the letter shows the GST separately, the TDS is on the instalment without it (CBDT Circular 23/2017). If the stamp duty value is higher than the agreement value, the 1% goes on the higher figure: ask your CA how to spread it over the instalments.

What interest can a builder charge on a late payment in Maharashtra?

SBI’s highest MCLR plus 2%: 10.95% a year from 15 October 2026.

Rule 18 of the Maharashtra RERA rules (2017) sets one rate both ways, buyer to builder and builder to buyer: the State Bank of India’s highest marginal cost of lending rate plus 2%. SBI’s highest MCLR, the three-year rate, is 8.95% from 15 October 2026, so the rate is 10.95% a year from the due date until the payment. It moves when SBI revises its MCLR, so check it before each reminder.

How many days does a buyer get to pay a demand letter?

As many as the agreement for sale gives.

As many as the agreement for sale gives. The generator starts at 15 days from the date of the letter; change it to match your agreement. Interest on a late payment runs from the due date.

Which bank account should the buyer pay into?

The project’s RERA collection account, for projects registered after 1 July 2024.

For projects registered with MahaRERA after 1 July 2024, Order No. 56/2024 has the promoter keep three accounts in one bank: a collection account that receives every payment from buyers, a separate account that holds 70% for land and construction, and a transaction account. The demand letter should name the collection account.

Can a CRM raise demand letters for every booking?

AuraStack CRM raises them against each booking’s payment plan.

Yes. AuraStack CRM keeps an eight-stage payment plan on every booking, raises demand letters against it, verifies payments maker-checker style and shows overdue amounts on the owner’s dashboard. It costs ₹799 a user a month on annual billing, after a 30-day trial.

Not on the list? Ask us the awkward version — we would rather lose a deal on the call than on the third invoice.

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