Rate of TDS on Sale of Immovable Property under Section 194IA of Income Tax Act, 1961 or Rate of TDS on Purchase of Immovable property. Person responsible for paying i.e. purchaser of property has to do the TDS of 1% at the time of payment of consideration. TDS to be done when consideration is more than Rs 50 Lakhs. No TDS on sale of agriculture property.
For the purpose of this section immovable property means any land (other than agricultural land) or any building or part of a building and agriculture land means agricultural land in India, not being a land situate in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2; (b).
Reference: Section 194IA for TDS on Payment on transfer of certain immovable property
194-IA. Payment on transfer of certain immovable property other than agricultural land.—(1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income tax thereon.
(2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees. (3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.
Explanation.— For the purposes of this section,— (a) “agricultural land” means agricultural land in India, not being a land situate in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of section 2; (b) “immovable property” means any land (other than agricultural land) or any building or part of a building.’.