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TDS on property
If you are buying property, whether you should deduct TDS before making payment?
By CA Manisha Fatarpekar
July 6, 2023
Any person who purchases property (other then agriculture land)
from a Resident Indian,
is required to deduct TDS
What is the rate of TDS?
Rate of TDS is 1%
of the consideration paid or payable to the resident seller where sale consideration or stamp duty value is more than Rs. 50 Lakhs .
6 Cases when No need to deduct TDS while making payment
Section 194-IA Explained
Agricultural Land
TDS on property is not required to be deducted in the case of agricultural land.
When the consideration for this sale or Stamp Duty Value of such property is
not more than Rs. 50 Lakh
No need to deduct TDS
If there are
more than one buyer
and also
multiple sellers
, where share of individual seller’s consideration is not crossing Rs.50 Lakh
No need to deduct TDS
In case of redevelopment scheme where stamp duty value of
property less monetary consideration paid
is not more than Rs. 50 Lakh
No need to deduct TDS
No need to deduct TDS
if there are following sellers
State Government
Central Government
Reserve Bank of India
When income of seller is unconditionally exempt under income tax act & who are not required to file his Income Tax Return
No need to deduct TDS