Maharashtra Property Buyers: New TDS Rules 2025 – What You Must Know
The 2025 Income‑Tax Act has revamped TDS for property transactions. Maharashtra investors now need to file updated forms and keep track of new rates.
Key points at a glance
- •❗TDS for sellers now 20% on sale proceeds, payable within 30 days of settlement.
- •🏠Buyers must deduct 2% TDS on transfer, if no sale agreement before deadline.
- •🔄NRIs face a flat 10% TDS on transfer value, with a reduced rate of 5% if a tax treaty applies.
- •📑New Form TDS‑2 replaces the old Form 26Q for sellers, while buyers use Form 26QB.
- •⏰Deadlines: TDS payment due within 30 days of settlement; filing within 45 days of transaction.
Seller’s TDS Snapshot
Sellers must now withhold 20% of the sale price and remit it within 30 days of settlement. File Form TDS‑2 online through the MCA portal.
Buyer’s Deduction Rules
Buyers are liable to deduct 2% TDS on the property value if no sale agreement is signed before the settlement date. Use Form 26QB to claim the deduction.
NRI Compliance
NRIs transferring property must pay 10% TDS upfront, reduced to 5% under a treaty. File Form 26QB and keep proof of treaty agreement.
Want more detail?
What actually happened?
The Income‑Tax Act 2025 introduced new TDS sections for property deals. Key changes include updated rates and new filing forms for sellers, buyers and NRIs.
What it means for buyers
Buyers now face a mandatory 2% deduction if they pay the full purchase price without a signed agreement. Failure to deduct can attract penalties up to 20% of the due TDS.
What to watch next
Keep an eye on the MCA portal for any further amendments and ensure your property broker is up‑to‑date with the new forms. Consult a tax advisor before finalising deals.
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