Rate of TDS

Last updated at April 16, 2024 by Teachoo

Section no	Description	Cutoff	Rate of TDS	Examples
194 IA	Purchase of Immovable property	4999999	1%	On purchase of property more than 50 lacs, buyer has to deduct 1% and pay balance to party

Changes in 194-IA Due to Lockdown

However,Due to Lockdown,Government has temporarily reduced Rate by 25%

hence,TDS Rate on Purchase of Immovable Property is Changed as follows

				Current Rate		New Rate (Temporary)
TDS on Purchase of Immovable Property				1%		1%*75%=0.75%

Note - This New Rate is Temporary only if TDS Deducted form 14 May 2020 to 31 Mar 2021

After this old Rate will be applicable

Example

Suppose A sells property to B for Rs 100 lacs

B will pay him only 99 lacs and deposit remaining 1 lacs TDS to Government

Note:-

While other Sections are applicable only if we are doing business,

this section is applicable for all assessees

Exception

Cut off

No TDS to be deducted if Consideration is less than 50 lacs (Unlike Other Sections,On 50 Lacs,TDS is to be deducted)
So Actual cut off is 4999999

Class 6