TDS on Purchasing Property – A Complete Guide

In real estate transactions, TDS (Tax Deducted at Source) on property purchases can surprise buyers. This guide clarifies TDS, especially in Chennai's market. TDS is a tax deduction mandated by the Income Tax Act. It applies to property purchases exceeding Rs. 50 lakhs for residential properties. Calculating TDS involves deducting about 1% of the property's sale value. Compliance includes obtaining a TAN and issuing Form 16B to the seller. Real estate developers in Chennai are directly affected by TDS regulations, crucial for maintaining trust among buyers. For 2 BHK apartment buyers, understanding TDS implications is vital for smooth transactions. Compliance ensures smooth property deals, benefiting both buyers and sellers.