{"id":7915,"date":"2025-07-16T10:30:45","date_gmt":"2025-07-16T10:30:45","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7915"},"modified":"2025-07-16T10:30:47","modified_gmt":"2025-07-16T10:30:47","slug":"section-194ia","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-194ia\/","title":{"rendered":"Section\u202f194IA"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-194ia\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section&#x202F;194IA<\/a> is a rule where a person must deduct <strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>TDS<\/a><\/strong> (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Tax<\/a> Deducted at Source) when buying immovable property (like land or house) worth &#8377;50&#8239;lakh or more. The buyer acts like a mini tax collector, holding back 1% of the payment and giving it to the government. It&rsquo;s a gentle way to make sure tax is paid.<\/p>\n\n\n\n<h2 id=\"who-it-applies-to\" class=\"wp-block-heading\">Who it Applies To<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Buyer:<\/strong> Any individual or company buying property.<\/li>\n\n\n\n<li><strong>No<\/strong> TDS if the seller is a <strong>Government body<\/strong> or local authority.<\/li>\n\n\n\n<li>Only applies if the <strong>total consideration is &#x20B9;50&#x202F;lakh or above<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"tds-mechanics-super-simple\" class=\"wp-block-heading\">TDS Mechanics (Super Simple)<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Threshold trigger:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Purchase amount (sale value + any &#x20B9; consideration) &#x2265; &#x20B9;50&#x202F;lakh &#x2192; TDS applies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>TDS rate:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Deduct <strong>1%<\/strong> of entire agreed price.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Payment timing:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Buyer must deduct at the time of <strong>credit\/payment<\/strong> to seller&#x2019;s account.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Deposit TDS:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Pay that 1% to the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> Department <strong>within 30 days<\/strong> of deduction, using <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/form-26q\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Form 26Q<\/a>B.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Proof to seller:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Buyer issues <strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/form-16\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Form 16<\/a>B<\/strong> to seller as proof of TDS deducted.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<h2 id=\"flow-of-events\" class=\"wp-block-heading\">Flow of Events<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Agreement signed &#x2192; Buyer pays &#x20B9;80&#x202F;lakh for a house.<\/li>\n\n\n\n<li>Buyer deducts &#x20B9;80,000 (1% of &#x20B9;80&#x202F;lakh)<\/li>\n\n\n\n<li>Buyer pays &#x20B9;7,920,000 to seller, &#x20B9;80,000 to Government.<\/li>\n\n\n\n<li>Buyer submits TDS online via Form 26QB within 30 days.<\/li>\n\n\n\n<li>Buyer gives Form 16B to seller as receipt.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"why-it-matters\" class=\"wp-block-heading\">Why It Matters<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prevents tax evasion on big land\/property deals<\/li>\n\n\n\n<li>Seller automatically gets credit for TDS deducted<\/li>\n\n\n\n<li>Buyer avoids future penalties by paying TDS on time<\/li>\n<\/ul>\n\n\n\n<h2 id=\"quick-recap\" class=\"wp-block-heading\">Quick Recap<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>Details<\/th><\/tr><\/thead><tbody><tr><td>When<\/td><td>Property cost &#x2265; &#x20B9;50&#x202F;lakh<\/td><\/tr><tr><td>Who deducts<\/td><td>Buyer<\/td><\/tr><tr><td>TDS rate<\/td><td>1% of full payment<\/td><\/tr><tr><td>Deposit &amp; Proof<\/td><td>Within 30 days via Form 26QB; Form 16B to seller<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Section&#x202F;194IA is a rule where a person must deduct TDS (Tax Deducted at Source) when buying immovable property (like land or house) worth &#x20B9;50&#x202F;lakh or more. The buyer acts like a mini tax collector, holding back 1% of the payment and giving it to the government. It&#x2019;s a gentle way to make sure tax is [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7915","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7915\/revisions"}],"predecessor-version":[{"id":7916,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7915\/revisions\/7916"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}