Income Tax

TDS on Purchase of Immovable Property: Buyer Checklist Under Section 194-IA

Finin2min Tax Desk·June 2026·7 min read194-IA

A homebuyer can become a tax deductor without realising it. Section 194-IA requires TDS on purchase of immovable property from a resident seller where the threshold is met, and the buyer has to handle deduction, deposit and certificate workflow correctly.

For broader context, see the Income Tax and Salary Hub.

Core Section 194-IA rule

Official Income Tax Department material states that tax under Section 194-IA is deducted at 1% of sales consideration or stamp duty value, whichever is higher, if the amount of consideration or stamp duty value of immovable property is ₹50 lakh or more. The official material also states that TAN is not required for Section 194-IA deduction.

Use the ITR Document Checklist Generator — AY 2026–27 to apply these points to your figures or facts.

Buyer workflow

Step	Control
Before agreement	Collect seller PAN and property details.
At payment/credit milestone	Deduct 1% where 194-IA conditions apply.
After deduction	Deposit within prescribed timeline using correct form/challan route.
After deposit	Issue certificate and keep acknowledgement.
Before ITR	Ensure seller credit matches and buyer record is complete.

For the connected rule, example or next step, see Property Purchase TDS: Form 26QB and Buyer Compliance Checklist.

Common buyer mistakes

Deducting only at final instalment even when earlier instalments triggered deduction.
Ignoring stamp duty value comparison.
Not handling multiple buyers/sellers correctly.
Using wrong PAN or year.
Not preserving Form 26QB/challan evidence.

Finin2min warning

Property TDS is buyer-side compliance. The registrar, bank or broker will not automatically fix your TDS error.

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Official sources used

This article is intentionally source-limited to official Income Tax Department / e-Filing material. Verify final positions with the latest Act, Rules, notifications, circulars and portal utilities before publishing.

For the connected rule, example or next step, see Property TDS under the Income-tax Act, 2025: Form 141 Explained.

FAQs

What is the 194-IA TDS rate? ▾

Official material states 1% of sales consideration or stamp duty value, whichever is higher, where the threshold is met.

Is TAN required for Section 194-IA? ▾

Official material states TAN is not required for tax deduction under Section 194-IA.

What is the threshold? ▾

Official guidance refers to ₹50 lakh or more based on consideration or stamp duty value.

Source and review trail

Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.

Primary category: Income Tax
Official starting point: www.incometax.gov.in

Page source links

For the connected rule, example or next step, see Commission Income Tax Treatment and TDS FY 2026-27.