TDS on Purchase of Property (Section 194-IA) – Complete Buyer’s Guide 2025 Buying a property is one of the biggest financial decisions most people make. But many buyers miss a crucial compliance step — TDS (Tax Deducted at Source) on property purchases. This guide explains Section 194-IA simply, with practical steps you can follow right away. What is TDS on property purchase? Section 194-IA requires the buyer to deduct 1% TDS from the consideration paid to the seller when the sale consideration or stamp duty value is ₹50,00,000 or more . You must deduct TDS before paying the seller. When does Section 194-IA apply? Applies to purchase of immovable property (land, building, flat) — except agricultural land . Applies when sale consideration or SDV ≥ ₹50,00,000 (higher of the two). Applies if the seller is resident in India . For non-residents, Section 195 is relevant. TDS rate 1% of the sale consideration (or stamp duty value). If seller does not provi...