With a view to prevent undervaluation and under-reporting of transactions in the real estate sector and also to collect tax at the earliest point of time, vide the Finance Act, 2013, a new section 194-IA has been inserted with effect from 1 June, 2013 to introduce TDS at the rate of 1% on the value of transfer of immovable property where the consideration is Rs. 50 Lacs or more.
Salient features of Section 194-IA:
The obligation to deduct TDS is cast on all Buyers, whether resident or non-resident, and includes individual, firm, company, etc.
The Seller should be a resident.
The quantum of consideration should be Rs. 50 Lacs or more.
Tax shall be deducted at the rate of 1%.
Tax is to be deducted either at the time of making payment or crediting of any sum as consideration for transfer of immovable property, whichever is earlier.http://www.lawweb.in/2013/07/tds-on-transfer-of-immovable-property.html