Budget 2025 amendment reduces TDS threshold to ₹30 Lakh for residential property, requiring buyers to deduct 1% TDS from October 1, 2025. Applicable to all residential properties ≥₹30 L.

Compliance requirements: Deduct 1% on entire consideration, deposit via Form 26QB within 30 days, issue Form 16B to seller, quote PAN of both parties. Joint buyers: Deduct proportionately based on ownership share.

Penalties: 1% monthly interest for late deposit, ₹200 per day late fee, prosecution for willful default. Exceptions: Agricultural land, government properties, certain exempt transactions. Keywords: TDS threshold reduction, Section 194-IA compliance, buyer obligation.