What You Should Know About 194IA TDS While Buying or Selling Property to Stay Compliant

When buying or selling property in India, a crucial financial regulation that often goes unnoticed is Section 194IA of the Income Tax Act, 1961. This provision mandates the deduction of Tax Deducted at Source (TDS) during specified property transactions. Non-compliance with this rule can lead to legal hassles and penalties. If you're navigating property transactions, here’s what you need to know about 194IA TDS to stay compliant, along with the benefits of financing property purchases through Bajaj Finserv’s home loan offering.

Understanding 194IA TDS

Section 194IA was introduced as part of measures to streamline property transactions and curb tax evasion in the real estate sector. As per this section:

1. Applicability
   
   

• TDS under 194IA applies when the consideration for a property transaction exceeds ₹50 lakh.
  
  

• It is applicable whether the property is land, a residential flat, or commercial property.
  
  

2. Who Needs to Deduct TDS?
   
   

• The buyer, not the seller, is obligated to deduct TDS at the rate of 1% of the transaction value.
  
  

3. Payment of TDS
   
   

• The buyer must deposit the TDS amount with the government. This is typically done online through the Tax Information Network (TIN).
  
  

4. Non-Agricultural Property
   
   

• The provision excludes agricultural land from the purview of 194IA TDS deductions.
  
  

5. PAN Requirement
   
   

• The buyer and seller must provide their PAN details for proper recordkeeping. Without a PAN, TDS is deducted at the maximum marginal rate.
  
  

6. Form 26QB
   
   

• Buyers must ensure proper filing of Form 26QB to deposit the TDS before issuing Form 16B to the seller.
  
  

Importance of Compliance

Non-compliance with 194IA can lead to:

• Penalties and Interest: Late payment or deduction of TDS adds financial stress through penalties and interest rates that increase over time.
  
  

• Legal Hassles: Both buyers and sellers can face scrutiny from tax authorities over improperly executed property transactions.
  
  

• Delays in Property Registration: Pending TDS obligations may delay the registration process, creating barriers in property ownership transfer.
  
  

Therefore, it’s imperative that all parties involved in high-value property transactions understand and adhere to the provisions under Section 194IA.

Financing Property Purchase with Bajaj Finserv Home Loans

Now that you understand how 194IA TDS impacts property transactions, let’s explore how you can leverage Bajaj Finserv’s Home Loan to simplify the financial aspect of buying property.

Purchasing real estate requires substantial financial resources, and not everyone may have the capital readily available. Bajaj Finserv offers an efficient and customer-centric home loan facility designed to fulfill your real estate funding needs, ensuring that buyers can stay compliant with 194IA while also achieving their dream of property ownership.

Benefits of Bajaj Finserv Home Loan

1. High Loan Amount
   Bajaj Finserv provides substantial loan amounts, going up to ₹5 crore or even higher depending on eligibility. This helps buyers comfortably purchase high-value properties that fall under the purview of 194IA TDS.
   
   

2. Competitive Interest Rates
   Bajaj Finserv offers competitive interest rates, making borrowing highly affordable for both salaried and self-employed individuals.
   
   

3. Flexible Tenure
   Buyers can choose repayment tenures ranging up to 30 years, ensuring manageable EMIs without financial strain.
   
   

4. Online Tools for Planning
   Bajaj Finserv provides calculators, such as the EMI calculator, to help buyers assess how much they can afford and plan their repayment strategy effectively.
   
   

5. Prepayment and Foreclosure Options
   To reduce the total interest burden, borrowers can opt for part-prepayments or foreclosures without hefty charges.
   
   

6. Minimal Documentation
   Applying for a home loan with Bajaj Finserv involves minimal paperwork, simplifying the application and approval process.
   
   

7. Quick Disbursal
   Upon approval, loan amounts are often disbursed promptly, enabling buyers to close property transactions efficiently while adhering to compliance norms like 194IA TDS.
   
   

8. Tax Benefits
   Borrowers can avail tax deductions on both principal repayment and interest paid under Sections 80C and 24(b) of the Income Tax Act, reducing the overall financial burden.
   
   

How to Apply for Bajaj Finserv Home Loan

Applying for a Bajaj Finserv Home Loan is a quick and seamless process that involves a few simple steps:

Step 1: Check Eligibility

Visit the home loan eligibility page to check your eligibility criteria based on income, age, employment type, and repayment capacity.

Step 2: EMI Calculation

Use Bajaj Finserv’s online home loan EMI calculator to plan your finances and determine a repayment schedule that works best for you.

Step 3: Document Preparation

Prepare essential documents, usually including:

• Proof of identity (Aadhaar, PAN, Passport)
  
  

• Proof of income (salary slips, bank statements, IT returns)
  
  

• Property-related documentation, including filing of 194IA TDS for high-value property deals
  
  

Step 4: Online Application

Fill out the home loan application form on Bajaj Finserv’s website. Keep your documents ready for submission. Be prepared to provide accurate information to avoid delays in the approval process.

Step 5: Approval and Disbursal

After verifying your application and documents, Bajaj Finserv provides a timely loan approval. Once approved, the funds are disbursed quickly to ensure you can close your property transaction smoothly.

Also Read :- What Factors Affect Home Loan Interest Rates in Delhi for Borrowers in 2025

Why Compliance and Home Loan Go Hand-in-Hand

Understanding your obligations under Section 194IA TDS allows you to manage property transactions responsibly, while financing your purchase through Bajaj Finserv’s home loan ensures that you don’t have to compromise on your dream property due to funding constraints. Balancing statutory obligations with proactive financial planning is the key to hassle-free real estate ownership.

Having a trusted financial partner like Bajaj Finserv simplifies the entire journey, from getting the perfect home loan to ensuring compliance with tax regulations. Whether you’re purchasing a property exceeding ₹50 lakh or exploring investment opportunities, Bajaj Finserv’s lending solutions provide the financial freedom you need.

Final Thoughts

Property transactions are complex, and compliance with laws like 194IA TDS is critical to avoid penalties, delays, and other complications. Buyers should familiarize themselves with the filing and deduction requirements under Section 194IA, ensuring a smooth process for both themselves and sellers.

Simultaneously, leveraging a home loan from Bajaj Finserv can help you secure the property you desire without financial strain. With flexible repayment options, competitive interest rates, and quick disbursal, Bajaj Finserv stands out as a reliable financing solution for individuals seeking to purchase high-value properties.

Ready to make your property dream come true? Visit Bajaj Finserv Home Loan page now and take the first step toward a smarter, more compliant property purchase!