TDS on property (section 194-IA)
Under section 194-IA of the Income Tax Act, a buyer of immovable property valued at ₹50 lakh or more must deduct 1% TDS and deposit it with the government. It is not an extra cost — it comes out of what is paid to the authority — but it is the buyer's compliance obligation, not the authority's. In RIICO's current round, 288 of the 584 live plots already cross ₹50 lakh at the reserve, and a bid only goes up.
Worth knowing
- The threshold is on the total value, including the freehold charge where one applies.
- The challan and the form are usually filed with the authority before possession.
Questions people ask
What is TDS on property in a government plot auction?
Under section 194-IA of the Income Tax Act, a buyer of immovable property valued at ₹50 lakh or more must deduct 1% TDS and deposit it with the government. It is not an extra cost — it comes out of what is paid to the authority — but it is the buyer's compliance obligation, not the authority's. In RIICO's current round, 288 of the 584 live plots already cross ₹50 lakh at the reserve, and a bid only goes up.
What should a bidder watch for with tds on property?
The threshold is on the total value, including the freehold charge where one applies.
Anything else about tds on property?
The challan and the form are usually filed with the authority before possession.