Section 194IA: TDS on sale of immovable property
Section 194IA of the Income-tax Act, 1961 covers TDS on sale of immovable property. From 1 April 2026 the same deduction sits in Section 393(1), Table Sl. No. 3(i), Income-tax Act, 2025. The rate, threshold and conditions below were read from incometaxindia.gov.in on 13 October 2026.
Section 194IA at a glance
| Nature of payment | Consideration for transfer of any immovable property (other than agricultural land) |
|---|---|
| Who deducts | Any person/transferee (other than those deducting under Sl. 3(iii)) |
| Threshold | Rs 50 lakh (consideration or stamp duty value; aggregated across all transferees/transferors per Note 1 and Note 3) |
| Income-tax Act, 2025 | Section 393(1), Table Sl. No. 3(i), Income-tax Act, 2025 |
| Payee without PAN | Highest of the rate below, the rates in force, or 20% |
TDS rate
| Payee | Rate |
|---|---|
| Resident transferor (any) | 1% of consideration or stamp duty value, whichever is higher |
Rates exclude surcharge and health and education cess.
Conditions and exceptions
- Finance Act 2026 (Act No. 4 of 2026, w.e.f. 1-4-2026) corrected the cross-reference in Note 3 to Table 393(1) (footnote 81).
- Where both Sl. 3(i) and 3(ii) apply, deduct only under 3(ii) (Note 2).
- No-PAN: s.397 of IT Act 2025 requires deduction at the highest of the provision rate, rates in force, or 20% (5% only for s.393(1) Sl. 8(ii) and 8(v)) - per incometaxindia.gov.in/w/section-397-5.
Which Act applies to your payment
The 1961 Act governs a payment if it was credited or paid on or before 31 March 2026, whichever happened first. If both happen on or after 1 April 2026, the 2025 Act applies.
Source and verification
Income Tax Department: Section 393(1), Table Sl. No. 3(i), Income-tax Act, 2025 →
Last verified on 13 October 2026. Finance Acts change TDS rates and thresholds; check the source before you deduct. This is general information, not advice for your situation.
Related
Frequently asked questions
What is the TDS rate under section 194IA?
1% of consideration or stamp duty value, whichever is higher for resident transferor (any). Rates exclude surcharge and cess.
What is the threshold for TDS under section 194IA?
Rs 50 lakh (consideration or stamp duty value; aggregated across all transferees/transferors per Note 1 and Note 3). Below this, no tax is deducted.
What is section 194IA called under the new Income-tax Act?
From 1 April 2026 it is Section 393(1), Table Sl. No. 3(i), Income-tax Act, 2025. The e-filing portal's TDS FAQ says the rates and thresholds were carried over; the section number is what changed.
What if the payee has no PAN?
Section 397 of the 2025 Act requires deduction at the highest of the rate above, the rates in force, or 20%.
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