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As per Income Tax Act 1961, Section 194-IA, TDS at 1% is applicable on property transactions exceeding ₹50 lakh.
TDS Calculation Result
Property Sale Price
₹0
TDS Rate
1%
TDS Amount (1%)
₹0
Net Payable to Seller
₹0
Payment Summary
Total Consideration
₹0
TDS @ 1%
₹0
Net Amount to Seller
₹0
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TDS on Property FAQs
Common questions about TDS on property transactions
TDS (Tax Deducted at Source) on property is a tax that the buyer must deduct when purchasing a property worth more than ’50 lakh. As per Section 194-IA of the Income Tax Act, 1% TDS must be deducted from the total sale consideration and deposited with the income tax department.
TDS under Section 194-IA is applicable when the property sale consideration exceeds ’50 lakh. It applies to both residential and commercial properties. The TDS is deducted at 1% on the total consideration amount, not just the amount above ’50 lakh.
The buyer of the property is responsible for deducting TDS at 1% before making the payment to the seller. The buyer must obtain a TAN (Tax Deduction Account Number) and deposit the TDS with the government within 30 days from the end of the month in which deduction is made.
The TDS rate for property transactions under Section 194-IA is 1% of the sale consideration for both resident sellers. For NRI sellers, the TDS rate is higher at 20% plus applicable surcharge and cess, as per Section 194-IA.
If the buyer fails to deduct or deposit TDS, they are treated as a defaulter. Interest at 1% per month is charged for late deduction, and 1.5% per month for late deposit. The buyer may also face penalties and disallowance of expenses under the Income Tax Act.
What is TDS on Property Purchase?
TDS on property purchase is a tax mechanism where the buyer deducts 1% of the property value before paying the seller and deposits it with the government. This applies to property transactions exceeding ’50 lakh under Section 194-IA of the Income Tax Act, 1961. Our TDS calculator helps you determine the exact TDS amount, net payable to the seller, and understand your tax obligations when purchasing high-value property.