TDS on Sale of Property

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This discussion clarifies the Tax Deducted at Source (TDS) rules when purchasing multiple properties from a single seller. If one property exceeds the £50 lakh threshold for TDS, it doesn't automatically mean TDS is applicable to other properties bought simultaneously, especially if they are distinct with separate registries and addresses. The £50 lakh limit applies on a per-property basis.

Ajaykumar Chaudhary

Ajaykumar Chaudhary (Querist)
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06 October 2020 Dear Experts,

If I buy 2 properties from a single seller, one is above 50 Lakh & second is below 50 Lakh. What will be a TDS treatment? Will both be considered for TDS or only one which is above 50 Lakh?

Please consult me on priority.

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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06 October 2020 For 2 properties there will be 2 registries. Both the land or building will be different having difference location and different address. So, limit of 50 lakh belongs to single property.

So, you do not need to deduct TDS on property having value less than 50 lakh.

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Ajaykumar Chaudhary

Ajaykumar Chaudhary (Querist)
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07 October 2020 Sir,
Thank you very much for the prompt help.

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