TDS whether applicable or not in case of Flat purchase

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Quick Summary

When purchasing a flat valued at over Rs. 50 lakhs, TDS is indeed applicable. Section 194IA mandates that the buyer must deduct TDS at a rate of 1% on the property's value or the amount paid. This ensures compliance with tax regulations for significant real estate transactions.

abhijit majumder

abhijit majumder (Querist)

16 July 2025 Sir
One of my colleague will going to purchase a flat. The price of the flat is around Rs .75lakhs.
My query as the amount payable is above Rs.50lakhs does he have to deduct TDS under section 194Q/194M?
OR 194Q /194M is not applicable?
Please clarify.
ABHIJIT

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 July 2025 Section 194IA tells that if the buyer of immovable property having a value more than Rs.50 lakhs is required to deduct TDS on property while making payment to the seller. The TDS to be deducted on purchase of property for this section shall be flat 1% on the amount or value of property.

abhijit majumder

abhijit majumder (Querist)

16 July 2025 thanks sir for the reply particularly mentioning of relevant section enlighten me of the deduction.
It enhanced my knowledge.
Regards
Abhijit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 July 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 September 2025 Good luck...

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