1 % of each payment to be deducted as TDS on purchase of any immovable property of Rs.50 lakhs or above (other than agricultural land).

If sale value of an immovable property (other than agricultural land) is Rs.50 lakhs and above, the buyer is obligated under the law to deduct tax at 1% on such value and pay the tax so deducted to the Government account within 7 days. For making payment, the PAN No. of the payer and the payee is required. [Section 194(IA)].

Immovable property sold lower than stamp duty value, difference would be taxed as income of seller as capital gains [Section 50C] or business income [Section 43CA]

In case the immovable property is sold at a value lower than the stamp duty value, then the difference between stamp duty value and consideration would be treated as income of the seller as capital gains u/s.50C, if the property is a capital asset. If the property is held as a business asset, then, it would be taxed as business income under section 43CA.

Immovable Property purchased lower than stamp duty value, difference would be treated as income of purchaser.

In case an immovable property is purchased at value lower than the stamp duty value, then difference between stamp duty value and the consideration value would be treated as the income of the purchaser [Section 56(2)(vii)(b)].