1% TDS on Sale of Property u/s 194IA in 2022 (Detailed Information)

TDS on Sale of Property is levied @ 1% on transaction of all properties the place the entire transaction worth is greater than Rs. 50 Lakhs. The way of levy of TDS on Property has been defined intimately on this article. The matters coated are as underneath:-

  1. Price of TDS on Sale of Property
  2. Quantity on which TDS is to be deducted
  3. TDS Deducted to be deposited with the Govt
  4. Process for Deposit of TDS
  5. TDS on Quantity paid in Installments
  6. TDS in case of greater than 1 purchaser or 1 vendor
  7. Penalty for Non-Deduction/ Non-Deposit of TDS
  8. Different Related Factors relating to TDS on Property
  9. e-Guide on Capital Beneficial properties Tax on Sale of Property

Price of TDS on Sale of Property

TDS on Sale of property is required to be deducted @1% if the property worth is greater than Rs. 50 Lakhs. This TDS is required to be deducted for all transactions after 1st June 2013 if the property transaction worth is greater than Rs. 50 Lakhs. That is relevant on sale of all properties besides on sale of Agricultural Land.

It’s also essential to notice right here that 1% TDS is relevant provided that the vendor is Resident in India. If the vendor is not-resident in India i.e. he’s an NRI, then the speed of TDS will change.



The speed of TDS in case of sale of property by Non-Resident can be 20% + Surcharge + Cess. TDS on Sale of Property by NRI can be levied even when the Transaction Worth is lower than Rs. 50 Lakhs.

The way of applicability on sale of property by NRI has been defined intimately right here – TDS on Sale of property by NRI

The way of levy of TDS on Sale of Property by Resident Indian has been defined beneath intimately.

Quantity on which the TDS is to be deducted

1% TDS on Sale to be deducted on all Property Transactions that are above Rs. 50 Lakhs. This TDS is to be deducted on all forms of Property Transactions regardless of whether or not the property in consideration is a flat or a constructing or a vacant plot. TDS is to be deducted regardless of whether or not it’s a Residential Property or Business or Industrial Property. TDS is to be deducted on all forms of property transactions besides Agricultural Land.

This TDS is to be deducted at a flat price of 1% regardless of whether or not any Capital Beneficial properties or Capital Loss is arising on the sale of property. Even when the vendor intends to say any Capital Achieve Exemptions on Sale of Property, in such circumstances as nicely the TDS can be required to be deducted @ 1%.

TDS is to be deducted on the entire quantity paid to the Vendor excluding GST. This may be defined with the assistance of an instance:-



Transaction Worth for Buy of Property Rs. 80,00,000
GST on above Property (if property is under-construction) Rs. 9,60,000_
Whole Amt to be paid Rs. 89,60,000

Within the above talked about case, TDS can be deducted on the Transaction Worth of Property i.e. Rs. 80 Lakhs and never on the GST levied on Sale of Property. Due to this fact, the TDS to be deducted can be 1% of Rs. 80 Lakhs i.e. 80,000. (PS: The computation of GST on sale of property might fluctuate relying on whether or not the developer is claiming Enter Tax Credit score of GST or not)

This TDS is required to be deducted in all circumstances regardless of the Capital Beneficial properties arising to the Vendor. In case, the Vendor is of the opinion that extra TDS has been deducted, he can declare refund of the surplus TDS Deducted whereas submitting the revenue tax return.

It’s to be famous that the customer/vendor can’t apply for decrease deduction of TDS within the above talked about case and the TDS can be deducted @ 1% of the Whole Property Transaction Worth.

In case of Dwelling Mortgage, the TDS can be deducted when the cost is made to the Vendor and never when the EMI is paid to the Financial institution.

Really helpful Learn:

  • TDS on Property bought on Dwelling Mortgage
  • Tax advantages of Dwelling Mortgage underneath Part 24, 80C, 80EE

Tax deducted on Property to be deposited with Govt

As per the Earnings Tax Act, any TDS deducted shall be deposited with the govt. on or earlier than the desired due date of deposit of TDS. Furthermore, any individual deducting TDS shall additionally apply for a TAN No. underneath Section 203A. This TAN No. is obligatory required to be quoted on the time of deducting any TDS and in addition on the time of submitting returns and deposit of TDS with the Govt.

The insertion of this new part 194IA for deduction of TDS on Property would have brought about pointless hardship to the customer of the property as he must apply for a TAN No. earlier than buying any property. In order to take away any such hardship, the govt. has launched a brand new sub-section(3) to Part 194IA which states {that a} individual deducting TDS on Property will not be obligatory required to own a  TAN No.

As per Notification No. 30/2016 dated twenty ninth April 2016, the TDS deducted by the customer on the time of creating the cost to the vendor needs to be deposited inside a interval of 30 days from the top of the month by which the deduction has been made. For eg: If the TDS has been deducted within the month of April, it must be deposited with the govt. earlier than thirtieth of Might. The identical applies to all different months as nicely.

All particulars relating to the transaction and TDS on Property are required to be furnished in Kind 26QB and this Kind 26QB is required to be submitted on the time of cost. Particulars on this kind can’t be furnished manually and may solely be furnished on-line by the next hyperlink



This Kind 26QB can solely be submitted on-line by the above talked about hyperlink. Nevertheless, the cost of TDS could be achieved on-line in addition to bodily by Financial institution. After the submission of the Kind 26QB – the payer can be given the choice to both deposit the TDS on-line or take a print -out of the furnished Kind 26QB and deposit the TDS within the Financial institution.

After depositing the TDS, the customer of the property would even be required to problem Kind 16B to the Vendor of the property in respect of the TDS deducted and deposited with the govt.. Kind 16B could be downloaded from the web site of the centralised processing cell of TDS (CPC-TDS) i.e. www.tdscpc.gov.in after 15 days from the top of month by which the cost has been made.

Leave a Reply

Your email address will not be published. Required fields are marked *