When is TDS on Property Required?

Under Section 194-IA, the buyer must deduct TDS at 1% of the sale consideration when:

Property value is ₹50 lakh or more
Seller is a resident (not NRI — different section applies)
Property is land (other than agricultural), building, flat, or commercial unit

Important: TDS is on the full consideration, not just the amount above ₹50 lakh. Deposit via Form 26QB within 30 days from month-end of deduction and issue Form 16B to the seller.

Example

Flat purchase price: ₹75,00,000 · Seller has PAN → TDS = 1% × ₹75,00,000 = ₹75,000. Pay seller ₹74,25,000 and deposit ₹75,000 to the government.

Frequently Asked Questions

Who deducts TDS — buyer or seller?

The buyer deducts and deposits TDS. The seller receives the balance after TDS.

What if the seller does not have PAN?

TDS rate increases to 20% under Section 206AA.

Is agricultural land covered?

Section 194-IA generally excludes agricultural land in rural areas. Consult a CA for specific plots.

How do I pay TDS?

Pay online through the TIN-NSDL portal using Form 26QB (Challan 26QB).

TDS on Property Purchase Calculator

🏠 Property TDS Calculator

When is TDS on Property Required?

Example

Frequently Asked Questions

Who deducts TDS — buyer or seller?

What if the seller does not have PAN?

Is agricultural land covered?

How do I pay TDS?

Buying Property? Get Expert Tax Help

🏠 Property TDS Calculator

When is TDS on Property Required?

Example

Frequently Asked Questions

Who deducts TDS — buyer or seller?

What if the seller does not have PAN?

Is agricultural land covered?

How do I pay TDS?

Related

Full TDS Guide

Home Loan EMI

Capital Gains

Buying Property? Get Expert Tax Help