Limit of amount of TDS

On which amount TDS is to be effected while selling of property by the buyer
Replies (5)
Quick Summary
This discussion clarifies the threshold for Tax Deducted at Source (TDS) when purchasing property in India. According to Section 194-IA, buyers must deduct 1% TDS on property sales if the sale consideration or stamp duty value exceeds Rs. 50 lakhs. This rule applies to immovable properties, excluding agricultural land, and the deduction is made at the earliest of crediting the amount or making the payment.

For resident Indian, sec. 194-IA.... 

 

(1) Any person, being a transferee, responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon.

(2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property and the stamp duty value of such property, both, is less than fifty lakh rupees.

Thanks for the clarification Sir.

If either stamp value or sale value exceeds Rs.50 lakhs

How come 50 lakhs? I read it yesterday as anyone who avails services or goods more than 20,000 is under tds of gst act. I could be wrong wrong because the sections are toomany

Here querist ask about property.

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