What is TDS on property purchase?

Under Section 194-IA of the Income Tax Act, a buyer must deduct 1% TDS on the purchase of immovable property (other than agricultural land) if the transaction value exceeds Rs 50 lakh. The buyer deducts TDS from the payment made to the seller and deposits it with the government.

What is the TDS rate on property purchase in 2026?

The TDS rate on property purchase is 1% of the total sale consideration (not just the amount exceeding Rs 50 lakh). If the seller does not provide a PAN, the TDS rate increases to 20%.

How to file Form 26QB for TDS on property?

Step 1: Visit the TRACES website (tdscpc.gov.in). Step 2: Go to e-File > Form 26QB. Step 3: Fill in buyer and seller details (PAN, address, contact). Step 4: Enter property details and sale consideration. Step 5: Calculate TDS amount (1% of sale value). Step 6: Pay TDS online via net banking or at authorized bank. Step 7: Download the challan (Form 26QB acknowledgment). Step 8: Generate TDS certificate (Form 16B) from TRACES after 15 days.

What is the penalty for not deducting TDS on property?

If the buyer fails to deduct TDS: (1) Interest of 1% per month on the TDS amount from the date of deduction to the date of actual deduction. (2) Interest of 1.5% per month from the date of deduction to the date of deposit. (3) Penalty under Section 271H ranging from Rs 10,000 to Rs 1,00,000.

Is TDS applicable on property below Rs 50 lakh?

No, TDS under Section 194-IA is not applicable if the total sale consideration of the property is less than Rs 50 lakh. This threshold applies to the total transaction value, including stamp duty value if higher.

When should TDS on property be paid?

TDS on property must be deposited within 30 days from the end of the month in which the deduction is made. For example, if TDS is deducted on 15th January, it must be deposited by 28th February.

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TDS on Property Purchase Calculator

Calculate TDS under Section 194-IA and learn how to file Form 26QB on TRACES

Property Details

Total Sale Consideration (Rs)

Does the seller have a PAN?

How to File Form 26QB and Pay TDS

Visit tdscpc.gov.in and register as a taxpayer using your PAN. Verify via email and mobile OTP.

Enter buyer and seller details

Fill in PAN, name, address and contact details for both buyer and seller. If multiple sellers, file separate Form 26QB for each seller.

Enter property and payment details

Property address, date of agreement/booking, total sale consideration, amount paid/credited and date of payment.

Pay TDS online

Pay via net banking through authorized banks. The portal auto-generates Challan No. ITNS 281. Save the challan receipt.

Download acknowledgment

After successful payment, download the Form 26QB acknowledgment with challan identification number (CIN).

Generate Form 16B (TDS certificate)

After 15 days of filing, login to TRACES > Downloads > Form 16B. This is the TDS certificate you must provide to the seller.

Important deadlines

TDS must be deposited within 30 days from the end of the month of deduction. Late deposit attracts interest at 1.5% per month.

Frequently Asked Questions

TDS Calculation

Enter property value and click Calculate

Section 194-IA: Buyer must deduct TDS on property valued above Rs 50 lakh.

TDS Rate: 1% if seller has PAN, 20% if seller has no PAN.

Form 26QB: Filed online on TRACES (tdscpc.gov.in) by the buyer.

Form 16B: TDS certificate issued to the seller after filing Form 26QB.

Threshold: Rs 50 lakh (total consideration or stamp duty value, whichever is higher).

Stamp Duty Calculator →EMI Calculator →