TDS on property purchase section 194IA

TDS on sale of property,  Section 194IA

Agreement value 80 lac, agreement date – 01.04.2023

First Instalment Payment of Rs.  10 lac is to be made to builder in oct 2023

Is it mandatory to deduct TDS @ 1%  u/s 194IA , or can I deduct later on when payment

Exceeds 50 lac.

In one case buyer paid various instalment to builder starting from 1.4.2019 and up to 15.10.2023 total 45 lac paid to builder without deducting TDS.  If we deduct TDS now  and  then there will be late fee and interest. Please suggest

Replies (1)

Dear umesh ji,

First of all see property document and see how much amount to be paid regarding the said property, and if the property value is Exact  Rs. 50 Lakh or more  then you have to require to deduct TDS @ 1% and.

  • TDS is required to be deducted only if total sale price is Rs 50 lakh or more
  • If the payment is made by instalments, then TDS has to be deducted on each instalment paid.

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