Do I need TDS if my flat costs under 50 lakh?

No TDS if the total price is genuinely below Rs 50 lakh. But since October 2024 you can't dodge it by splitting payments across multiple buyers/sellers - all payments in the deal are added together for the threshold test. No TDS if total consideration is below Rs 50 lakh Since the Finance (No.2) Act 2024 amendment (1 Oct 2024), payments by/to ALL parties in one deal are aggregated Closed the loophole of co-owners each paying just under Rs 50 lakh Same aggregation expected to continue under Section 393(1)/Form 141

Can multiple buyers split payments to avoid TDS?

No TDS if the total price is genuinely below Rs 50 lakh. But since October 2024 you can't dodge it by splitting payments across multiple buyers/sellers - all payments in the deal are added together for the threshold test. No TDS if total consideration is below Rs 50 lakh Since the Finance (No.2) Act 2024 amendment (1 Oct 2024), payments by/to ALL parties in one deal are aggregated Closed the loophole of co-owners each paying just under Rs 50 lakh Same aggregation expected to continue under Section 393(1)/Form 141

CAPGAIN › Answers › Capital gains & TDS on property › Do I Need TDS if the Property is Under Rs 50 Lakh, or Split Between Buyers?

Do I Need TDS if the Property is Under Rs 50 Lakh, or Split Between Buyers?

Short answer: No TDS if the total price is genuinely below Rs 50 lakh. But since October 2024 you can't dodge it by splitting payments across multiple buyers/sellers - all payments in the deal are added together for the threshold test.

Law: Section 194-IA / Section 393(1), Income-tax Act 1961 / 2025 · Authority: CBDT · Status: in force (effective 1 Oct 2024) · Checked 25 Sept 2026

What you need to know

No TDS if total consideration is below Rs 50 lakh
Since the Finance (No.2) Act 2024 amendment (1 Oct 2024), payments by/to ALL parties in one deal are aggregated
Closed the loophole of co-owners each paying just under Rs 50 lakh
Same aggregation expected to continue under Section 393(1)/Form 141

Who this applies to: buyers, sellers, CAs

Official / primary source: incometaxindia.gov.in (government source)

The law behind it

Section 393(1), Income-tax Act 2025 - Consolidated TDS on Property/Rent/Contractors

The new Act merges old Sections 194-IA, 194-IB, 194-I plus contractor/professional TDS into one Section 393(1), reported on one Form 141. The 1% rate and Rs 50 lakh threshold for property from a resident are unchanged - only the paperwork changed.

Section 393(1), Income-tax Act 2025 · in force · source

Form 141 - Consolidated Challan-cum-Statement (Property/Rent/Contractor/VDA TDS)

The new all-in-one TDS form replacing Forms 26QB, 26QC, 26QD and 26QE. For property, the rate and threshold are unchanged (1% above Rs 50 lakh) - only the form and reporting detail changed.

Form 141, filed under Section 393(1), Income-tax Act 2025 · in force · source

24-Month Holding Period for Long-Term Capital Asset Status (Property)

Hold a property over 24 months before selling and your gain is 'long-term', with better tax treatment. This has applied since AY2018-19 and was NOT changed by the July 2024 budget reforms.

Section 2(42A), Income-tax Act 1961 / Section 2, Income-tax Act 2025 · in force · source

Section 26, Income-tax Act 2025 - House Property Deductions (successor to Section 24)

The 30% standard deduction and home loan interest rules from Section 24 continue as Section 26 of the new Act.

Section 26, Income-tax Act 2025 · in force · source

Work out your own numbers

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