Tds on immovable property

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Rekha Sai Teja (Querist)

29 May 2015 Dear sir, I just have read the sections 194 LA , 194LLA and 194IA.. what's the difference in section 194LLA and 194IA ??

Rekha Sai Teja

Rekha Sai Teja (Querist)

30 May 2015 Please
do reply for my Query..

Thank u ..

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

27 July 2025 Great question! Here’s a clear explanation of the difference between **Section 194IA** and **Section 194LLA** under the Income Tax Act related to TDS on immovable property:

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### Section 194IA vs Section 194LLA — Key Differences

| Feature | Section 194IA | Section 194LLA |
| -------------------------- | -------------------------------------------------------------------- | ------------------------------------------------------------------------------------------ |
| **Applicability** | TDS on **sale of immovable property (other than agricultural land)** | TDS on **payment of rent for lease of immovable property** (including plant and machinery) |
| **Who deducts TDS?** | Buyer (purchaser) of immovable property | Tenant (payer of rent) |
| **Rate of TDS** | 1% of sale consideration | 2% of rent paid |
| **Threshold limit** | Payment exceeds Rs. 50 lakhs | Annual rent exceeds Rs. 2.4 lakhs (Rs. 20,000 per month approx.) |
| **Purpose** | Deduct TDS on purchase price to secure tax revenue on property sales | Deduct TDS on rent payments to track rental income |
| **Due date for deduction** | At the time of payment or credit to seller, whichever is earlier | At the time of payment or credit to landlord, whichever is earlier |
| **TDS deposit & filing** | Buyer deposits TDS and files Form 26QB | Tenant deposits TDS and files Form 26QC |

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### Summary in simple terms:

* **Section 194IA** is for **purchase of immovable property** — the buyer deducts 1% TDS on the sale price.
* **Section 194LLA** is for **rent paid on immovable property** — the tenant deducts 2% TDS on rent payments if rent exceeds Rs. 2.4 lakh annually.

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### Example:

* You **buy a house** for Rs. 60 lakhs → Buyer deducts 1% TDS under **Section 194IA** (i.e., Rs. 60,000).
* You **rent out a commercial space** and pay rent Rs. 25,000/month → Tenant deducts 2% TDS on rent paid under **Section 194LLA**.

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Let me know if you want a detailed explanation on **Section 194LA** as well!

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