In accordance with the Finance Act of 2013, TDS (Tax Deducted at Source) is applicable on the purchase of immovable property such as Land, Building,  when the sale consideration is ₹ 50,00,000 (Rupees Fifty Lakhs) or more. Sec 194 IA of the Income Tax Act stipulates that, in such transactions, the purchaser of the property is required to deduct a tax at the rate of 1% at the time of making payment to the builder, developer, or any seller. Immovable property includes purchase of residential flats, shops, offices, or any piece of land.

The deducted tax must then be deposited into the Government Account through any authorized bank branch. Also a tax return in form 26QB needs to be submitted on the IT Portal.