Section 194-IA → Section 222
TDS on Payment on transfer of certain immovable property other than agricultural land
Quick Answer
Section 194-IA of the Income Tax Act, 1961 (TDS on Payment on transfer of certain immovable property other than agricultural land) corresponds to Section 222 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 194-IA
Section 194-IA of the 1961 Act sets out the rules on TDS on payment on transfer of certain immovable property other than agricultural land. TDS @ 1% by the buyer on the purchase of immovable property if the consideration exceeds Rs. 50 Lakhs.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 194-IA is retained and renumbered as Section 222 of the Income-tax Act, 2025. Retained. The 1% TDS is calculated on the higher of the Sales Consideration or the Stamp Duty Value.
The transition impact on Section 194-IA is assessed as High. Essential for every real estate transaction in India.
Sec 194-IA
Provision Summary
TDS @ 1% by the buyer on the purchase of immovable property if the consideration exceeds Rs. 50 Lakhs.
Sec 222
Provision Summary
Retained. The 1% TDS is calculated on the higher of the Sales Consideration or the Stamp Duty Value.
Key Changes & Highlights
- Explicitly linked with Section 50C to ensure no mismatch between TDS and Capital Gains reporting.
Related Sections
Frequently Asked Questions
Which subject does Section 194-IA of the 1961 Act cover?
Section 194-IA of the Income Tax Act, 1961 covers TDS on payment on transfer of certain immovable property other than agricultural land. TDS @ 1% by the buyer on the purchase of immovable property if the consideration exceeds Rs. 50 Lakhs.
What is the new section number for Section 194-IA under the Income-tax Act, 2025?
Section 194-IA of the Income Tax Act, 1961 maps to Section 222 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. The 1% TDS is calculated on the higher of the Sales Consideration or the Stamp Duty Value.
How does the Income-tax Act, 2025 affect Section 194-IA in practice?
The transition impact for Section 194-IA is rated High. Essential for every real estate transaction in India.
What is new about Section 194-IA under the Income-tax Act, 2025?
Explicitly linked with Section 50C to ensure no mismatch between TDS and Capital Gains reporting. These points are specific to Section 194-IA (TDS on Payment on transfer of certain immovable property other than agricultural land).
Disclaimer: This mapping of Section 194-IA (TDS on Payment on transfer of certain immovable property other than agricultural land) to Section 222 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 194-IA is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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