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.
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.
| 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. |
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.
Official material states 1% of sales consideration or stamp duty value, whichever is higher, where the threshold is met.
Official material states TAN is not required for tax deduction under Section 194-IA.
Official guidance refers to ₹50 lakh or more based on consideration or stamp duty value.