Tds of 1% and its applicability

I understand that with effect from 2013, there is the responsibility for the transferee(purchaser) to withhold the TDS of 1% if the property consideration price  immovable property is more than and equal to 50 lakhs.

My question is what the defintion of '' consideration proce'' does it mean that the payment maid to the seller or the market value(circle rate) as determined by the govt registration office for the purpose of determining registration fees or stamp duty .

case-1: if MV is higher than 50 lakhs but  the payment to the owner is less than 50 lakhs

case -2: if MV is lower than 50 lakhs but  the payment to the owner is higher than 50 lakhs

Kindly guide me .

Thanks & Regards


Lawyer in Hyderabad.wats app no.9989324294

The Budget 2013-14 introduced TDS on property @ 1% on all immovable property transactions over Rs.50 lakhs under section 194 IA



Go through the Finance Act or consult a tax consultant for getting approptiate reply.


Actually I am not intending to know the which sections of IT act call for such TDS deduction but I really want to know the interpretations. I have already gone through the 2013 finance bill but unable to comprehend the above points, kindly enlighten me.

Hello everyone,

You can check the detailed tax rates for financial year 2015-16 here at


This Matter is dealth with in Income TAX Section 194 IA. This is not Application to Rural Agriculture Land trasfer, Compulsory acquision by any Law & Consideration is less than  Rs. 50 Lakhs. Rate of TDS is @ 1%  at the time of Account credit or payment  in cash or cheque or any other mode. 




Your are not logged in . Please login to post replies

Click here to Login / Register  


  Search Forum



Post a Suggestion for LCI Team
Post a Legal Query
CrPC Course!     |    x