Renting instead of buying? Run the rent TDS calculator — 194-I vs 194-IB. Received the property as a gift instead? Check gift taxability under Section 56(2)(x).
Section 194-IA requires a buyer to deduct 1% TDS on the transfer of immovable property (other than agricultural land) from a resident seller, once the transaction crosses ₹50 lakh. The Finance Act 2022 amended the section with effect from 1 April 2022 so that both the ₹50 lakh threshold test and the 1% TDS base use the higher of the actual sale consideration or the stamp duty value (SDV / circle-rate value) of the property — a deal priced below ₹50 lakh on the agreement can still attract 194-IA once the SDV is factored in.
For joint purchases or joint sales, the statute does not expressly say whether the ₹50 lakh test applies to the whole property value or to each co-owner's individual share, and CBDT has not issued a clarifying circular. Named ITAT rulings have leaned toward testing each transferee's share — Vinod Soni v ITO (Delhi ITAT, ITA No. 2736/Del/2015) for joint buyers and Oxcia Enterprises (P) Ltd v DCIT (ITAT Jodhpur, (2019) 199 TTJ (UO) 25) for joint sellers — but that remains contested, Tribunal-level, taxpayer-favourable case law rather than settled departmental policy — this calculator surfaces both readings so the divergence is visible rather than silently picking one.
The moment the seller is a non-resident, 194-IA drops out entirely and Section 195 governs instead: TAN becomes mandatory, there is no ₹50 lakh floor, and — absent a Section 197 lower/nil-deduction certificate — the buyer must deduct on the full consideration at the applicable capital-gains rate plus surcharge and cess, not a flat 1%. Different forms apply too: Form 27Q instead of Form 26QB, Form 16A instead of Form 16B.
A resident buyer purchases a flat for an agreed consideration of ₹48 lakh, but the stamp duty / circle-rate value of the property is ₹52 lakh. Single buyer, single resident seller, seller PAN available.
