TDS on Property Calculator India — Section 194IA
Calculate how much TDS to deduct when buying property above ₹50 lakh in India. Covers Section 194IA (1% TDS), stamp duty value test, joint purchase split, Form 26QB due dates, and penalty calculator for late deduction or deposit. Updated for FY 2025-26.
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How to Use This Calculator
TDS on Property tab
Enter the property sale consideration (price agreed between buyer and seller) and indicate whether the seller has a PAN. Optionally enter the stamp duty value (circle rate × area) — if the stamp duty value is higher than the actual consideration, TDS must be deducted on the stamp duty value. The calculator shows the TDS amount, net payable to the seller, Form 26QB due date, and a step-by-step process guide.
Joint Purchase tab
Enter the total property price, select the number of buyers, and specify Buyer 1's ownership share (%). The calculator splits the TDS liability proportionally and reminds each buyer that they must file a separate Form 26QB for their respective share.
Penalty Calculator tab
Enter the TDS amount, the number of months delayed for deduction (attracts 1%/month interest), and months delayed for deposit (attracts 1.5%/month interest). Optionally enter the number of days late for Form 26QB filing to compute the &rupee;200/day late fee under Section 234E (capped at the TDS amount).
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The Formula
Section 194IA of the Income Tax Act, 1961 requires the buyer to deduct TDS at the time of purchasing immovable property:
TDS Base = Higher of (Sale Consideration, Stamp Duty Value)
TDS Amount = TDS Base × 1%
Conditions:
• Applicable only if sale consideration > &rupee;50,00,000
• Applies on FULL consideration (not just the excess above &rupee;50 lakh)
• Agricultural land is exempt
• Without seller PAN (Section 206AA): TDS at 20%
Net Payable to Seller:
Net = Sale Consideration − TDS Amount
Penalty for Non-Compliance:
Interest (late deduction) = TDS × 1% × months delayed [Section 201(1A)]
Interest (late deposit) = TDS × 1.5% × months delayed [Section 201(1A)]
Form 26QB late fee = &rupee;200 per day (capped at TDS amount) [Section 234E]
The buyer is the deductor — the legal obligation to deduct TDS and deposit it with the government falls entirely on the buyer. If the buyer fails to deduct, they can be treated as an assessee in default under Section 201 of the Income Tax Act.
Example
Priya — buying a 2BHK flat in Pune for &rupee;85 lakh
Priya is purchasing a resale flat in Pune for &rupee;85,00,000. The seller (Ramesh) has a valid PAN. The stamp duty value (circle rate) is &rupee;92,00,000. Priya needs to know how much TDS to deduct before making the final payment.
Step 1: Check if TDS applies
Step 2: Determine TDS base
Step 3: Calculate TDS
Step 4: Compliance
Priya pays &rupee;84,08,000 to Ramesh and deposits &rupee;92,000 as TDS via Form 26QB on traces.gov.in within 30 days of the month-end. She then issues Form 16B (TDS certificate) to Ramesh within 15 days of depositing the TDS.