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194-IA
Section 194-IA TDS Rate FY 2026-27
TDS on purchase of immovable property (other than agricultural land): rate, threshold, who deducts, and the new section number under the Income-tax Act 2025.
Quick answer
- TDS rate
- 1%
- Threshold
- Consideration of ₹50,00,000 or more
- Old section (1961 Act)
- Section 194-IA
- New section (2025 Act, from 1 Apr 2026)
- Section 393(1), Table Sl. No. 3(i)
- Without PAN
- 20% if the seller does not furnish a valid PAN.
194-IA TDS rate chart
| Nature of payment | Rate |
|---|---|
| Consideration or stamp duty value, whichever is higher | 1% |
Who deducts and when
Who has to deduct
The buyer of immovable property (other than rural agricultural land) from a resident seller, whether or not the buyer is in business.
When to deduct
At the time of payment or credit of each instalment, whichever is earlier.
Points to remember
- No TAN is needed. Tax is paid using the challan-cum-statement Form 26QB.
- TDS is computed on the higher of the sale consideration and the stamp duty value.
- From 1 October 2024, the ₹50 lakh test looks at the total consideration for the property even when there are several buyers or sellers.
- For a non-resident seller, a different provision (old Section 195) applies, not 194-IA.
Worked example
A buyer purchases a flat for ₹75 lakh from a resident seller. The stamp duty value is ₹72 lakh.
TDS at 1% = ₹75,000.
Section 194-IA TDS calculator
Runs in your browser. Check the threshold above before deducting.
Applicable rate –
TDS amount ₹0
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Frequently Asked Questions
What is the TDS rate under Section 194-IA?
1% for consideration or stamp duty value, whichever is higher.
What is the threshold limit for TDS under 194-IA?
Consideration of ₹50,00,000 or more.
What is the new section for 194-IA under the Income-tax Act 2025?
From 1 April 2026 the Income-tax Act 2025 replaces the 1961 Act. TDS on purchase of immovable property (other than agricultural land) (old Section 194-IA) is now covered by Section 393(1), Table Sl. No. 3(i). The rate and threshold carried over unchanged.
Who has to deduct TDS under 194-IA?
The buyer of immovable property (other than rural agricultural land) from a resident seller, whether or not the buyer is in business.
When should TDS under 194-IA be deducted?
At the time of payment or credit of each instalment, whichever is earlier.
What is the TDS rate under 194-IA if PAN is not available?
20% if the seller does not furnish a valid PAN.
What is the due date for depositing TDS under 194-IA?
Tax deducted under 194-IA must be paid with the challan-cum-statement within 30 days from the end of the month in which it was deducted.
What happens if TDS under 194-IA is not deducted or deposited on time?
Interest is charged at 1% per month (or part of a month) from the date tax was deductible to the date it is deducted, and at 1.5% per month from deduction to deposit. Late filing fees and penalties can also apply, and for a business, 30% of the expense may be disallowed.
Is TDS on property purchase deducted on the stamp duty value?
TDS is deducted at 1% of the sale consideration or the stamp duty value, whichever is higher.
Which form is used to deposit TDS on property purchase?
Form 26QB, a challan-cum-statement filed using the buyer's PAN. A TAN is not required.
Section 393 table references are based on the Income-tax Act, 2025 as published. Verify the serial number against the official text before quoting it in a return or notice reply.
Other TDS sections
TDS on common payments
TDS on Rent
10% / 2%
TDS on Salary
Slab rates (average)
TDS on Purchase of Goods
0.1%
TDS on Property Purchase
1%
TDS on Sale of Property
1% (resident) / 12.5%+ (NRI)
TDS on Commission
2%
TDS on Professional Fees
10% / 2%
TDS on Contractor Payments
1% / 2%
TDS on Partners' Remuneration
10%
TDS on FD Interest
10%
TDS on GST (TDS under GST)
2% (1% CGST + 1% SGST, or 2% IGST)
TDS on Cash Withdrawal
2% (5% for non-filers above ₹1 crore)