TDS at purchase (Section 194-IA)
If sale consideration exceeds ₹50 lakh, the buyer must deduct 1% TDS and deposit it via Form 26QB within 30 days of the month of payment. The bank issues a NOC or accepts net payment to enable this.
Failure to deduct TDS attracts interest and penalty on the buyer, not the bank.
GST on the purchase
Ready-to-move-in property with completion certificate: no GST. Under-construction auction lots: 5% (residential) or 12% (commercial) on the sale value, without input tax credit.
Capital gains on resale
- Sold within 24 months of registration — short-term capital gains at your slab rate.
- Sold after 24 months — long-term, taxed at 12.5% (post July 2024 regime) without indexation.
- Reinvestment under Section 54 (residential) or 54EC (bonds) reduces or defers the tax.
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