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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.

Actual price agreed between buyer and seller
Yes
Without seller PAN, TDS is deducted at 20% (Section 206AA)
Value as per stamp duty authority (circle rate × area). TDS is on the higher of sale price or stamp duty value.

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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 on Property Purchase (Section 194IA):
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

Sale consideration&rupee;85,00,000
Section 194IA threshold&rupee;50,00,000
TDS applicable?Yes (&rupee;85L > &rupee;50L)

Step 2: Determine TDS base

Sale consideration&rupee;85,00,000
Stamp duty value&rupee;92,00,000
TDS base (higher value)&rupee;92,00,000

Step 3: Calculate TDS

TDS rate (seller has PAN)1%
TDS amount (1% of &rupee;92L)&rupee;92,000
Net payable to Ramesh&rupee;84,08,000

Step 4: Compliance

Priya pays Ramesh&rupee;84,08,000
Priya deposits TDS via Form 26QB&rupee;92,000
Due date for Form 26QBWithin 30 days of month-end
Ramesh claims TDS credit in ITRVia Form 16B issued by Priya

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.

FAQ

A buyer must deduct TDS under Section 194IA if the sale consideration for immovable property (other than agricultural land) exceeds &rupee;50,00,000. TDS is deducted at 1% on the full consideration — not just the amount above &rupee;50 lakh. The obligation to deduct arises at the time of credit or payment, whichever is earlier. If advance payments are made, TDS must be deducted on each installment proportionally.
Form 26QB is an online challan-cum-statement filed by the buyer on traces.gov.in or the Income Tax e-filing portal. The process: (1) Go to TIN NSDL or traces.gov.in and select Form 26QB; (2) Fill in buyer and seller PAN, property details, transaction date, and TDS amount; (3) Pay TDS online via net banking (no physical challan needed); (4) The form generates a unique acknowledgement number; (5) Use this number to download Form 16B (TDS certificate) from TRACES within 10-15 days; (6) Provide Form 16B to the seller within 15 days of uploading the challan. The due date for Form 26QB is 30 days from the end of the month in which TDS was deducted. No TAN is required — buyer's PAN is sufficient.
If the seller is an NRI, Section 194IA does not apply. Instead, Section 195 of the Income Tax Act applies, which requires the buyer to deduct TDS at the applicable capital gains tax rate (typically 20% LTCG or 30% STCG on the sale price, not just the gain). This requires the buyer to obtain a TAN, file TDS return in Form 27Q (not 26QB), and issue Form 16A. The NRI seller can apply for a lower deduction certificate from the Income Tax Department (Form 13) if their actual tax liability is lower than the standard TDS rate. Consulting a CA is strongly recommended when buying from an NRI.
In a joint purchase, each buyer independently deducts TDS in proportion to their ownership share and files a separate Form 26QB. For example, if two buyers own 60% and 40%, each files one Form 26QB with their proportionate TDS amount. Similarly, if there are joint sellers, the TDS is split in proportion to each seller's share, and a separate Form 26QB is required for each buyer-seller combination. For 2 buyers and 2 sellers, 4 Form 26QBs are required in total. Each buyer's due date is the same — 30 days from the end of the month of deduction.
If the seller does not provide a PAN, the buyer must deduct TDS at 20% under Section 206AA (instead of 1%). This significantly increases the TDS amount and may cause problems for the seller when claiming credit. For example, on an &rupee;80 lakh property, TDS jumps from &rupee;80,000 (1%) to &rupee;16,00,000 (20%). The buyer should insist on the seller's PAN before completing the transaction. Once the seller provides their PAN, they can claim the TDS credit in their ITR and get a refund if their actual tax liability is lower.

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