Section no



Rate of TDS


194 IA

Purchase of Immovable property



On purchase of property more than 50 lacs, buyer has to deduct 1% and pay balance to party



Changes in 194-IA Due to Lockdown

However,Due to Lockdown,Government has temporarily reduced Rate by 25%

hence,TDS Rate on Purchase of Immovable Property is Changed as follows


  Current Rate New Rate (Temporary)
TDS on Purchase of Immovable Property 1% 1%*75%=0.75%



Note - This New Rate is Temporary only if TDS Deducted form 14 May 2020 to 31 Mar 2021

After this old Rate will be applicable



Suppose A sells property to B for Rs 100 lacs

B will pay him only 99 lacs and deposit remaining 1 lacs TDS to Government



While other Sections are applicable only if we are doing business,

this section is applicable for all assessees




  • This section is not applicable in case of Non Resident Seller
  • This section is not applicable on Agricultural Land

Cut off 

  • No TDS to be deducted if Consideration is less than 50 lacs (Unlike Other Sections,On 50 Lacs,TDS is to be deducted)
  • So Actual cut off is 4999999


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.