India Tax & Regulatory
TDS on Sale Consideration (Section 194-IA / 195)
The buyer's statutory obligation to deduct tax at source on specified payments to a seller — including immovable property transfers over ₹50 Lakh (Section 194-IA) or any payment to a non-resident seller (Section 195) — before releasing proceeds.
Buyer Example
Buyer acquiring a Faridabad manufacturing unit's factory land, part of a broader ₹14 Cr asset purchase, withholds 1% TDS under Section 194-IA on the ₹8 Cr land component before remitting the balance, and separately follows the lower/nil-deduction certificate process for the non-resident co-promoter's share under Section 195 — protecting the buyer from being treated as an "assessee in default" for under-deduction.