TDS on property deals
What this means, checked by a CA
Buying from a resident for ₹50 lakh or more? You deduct 1% TDS. Buying from an NRI? TDS is far higher unless the seller has a lower certificate; since 1 October 2026 you can deposit it with your PAN, no TAN needed.
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- TDS on Property Purchase: Section 393(1) (old 194IA), Form 141 (old Form 26QB)When you buy any property valued above ₹50L, you must deduct 1% TDS from the payment to the seller and deposit it with the government. This is not optional. The buyer…
- TDS on Property Purchase: Section 393(1) (old 194IA)Most property buyers do not know they are legally required to deduct 1% TDS from the payment to the seller and file Form 141 (old Form 26QB). This is one of the most c…
- NRI Property Sale: TDS 20–30% by Buyer (Section 393, old 195)When an NRI sells property in India, the buyer must deduct TDS at 20% (LTCG rate) or 30% (STCG rate) on the ENTIRE sale consideration, not just the gain. This is the m…
- REIT vs direct property: the real comparisonDirect property: Rental yield net of maintenance: 2-3%. LTCG on sale: 12.5% (no indexation from July 2024). Illiquid. Requires maintenance, tenant management. TDS comp…
- TDS on Salary: Section 392 (old 192)The most voluminous TDS in India, every employer deducts on estimated annual salary. Most errors in TDS happen here: wrong regime, missed deductions, dual employment.