Explanation
Section 194IA of IT Act 1961 (§393 of IT Act 2025): buyer deducts 1% TDS on the entire sale consideration (not just the profit) when buying immovable property (other than agricultural land) from a resident for ≥₹50 lakh. Process: (1) Deduct 1% of consideration at the time of payment. (2) Deposit via Form 26QB on NSDL/TIN portal within 30 days of the end of the month of deduction. (3) Download Form 16B (TDS certificate) from TRACES within 15 days of deposit — give to seller. No TAN required — buyer's PAN used. Late deposit fee: §234E ₹200/day. Penalty for non-deduction: §271C equal to TDS amount. Important: for NRI sellers, §195 applies — NOT §194IA — different rates, no ₹50L threshold, TAN required. Verify on the income-tax portal before filing.