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TDS on sale of property where consideration is Rs.50 lac

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jaydev makwana

Advocate

21 Points Posted on 04 August 2025

Hi All, it is clear that sale of property at Rs. 50 lac and above attracts 1% TDS.

My question is:

1. When the buyer's bank for home loan is remitting directly to seller's bank for home loan, will it also undertake to remit TDS ?

2. The amount disbursed by buyer's home loan bank is Rs. 49.50 lacs to the seller's home loan account, will Rs. 0.50 lac to be remitted as TDS will form part of total consideration of Rs. 50 lacs?

3. What would be the template insertion in the sale deed to document this TDS transaction?

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 04 August 2025

TDS is deducted over total sale consideration, which includes the reimbursment by Bank. So that is also considered.
Bank do not deduct TDS. It is the liability of purchaser to deduct TDS over the amount.
Total amount say 60 lakhs, Total deduction will be 60K. Bank do not deduct TDS so the total liability will be over the purchaser to deuct TDS od 60K in one go or as and when installments are paid.