Who pays TDS on property purchase in India — buyer or seller?

Under Section 194-IA, the buyer is the deductor. The buyer withholds 1% of the sale consideration, deposits it to the government via Form 26QB, and issues Form 16B to the seller. The TDS is credited against the seller's eventual capital gains tax.

Is TDS applicable if the property is under ₹50 lakh?

No. Section 194-IA's threshold is ₹50 lakh on the transaction. A property bought for ₹49 lakh has no TDS obligation. A property bought for ₹50 lakh or more triggers the full 1% deduction on the entire sale consideration, not just the amount above ₹50 lakh.

If two buyers jointly buy a ₹60 lakh property, is TDS applicable?

Yes. The ₹50 lakh threshold is at the transaction level, not the buyer's share. Even though each co-buyer is paying ₹30 lakh (below ₹50 lakh), the transaction exceeds the threshold, so each buyer must deduct 1% on their own share and file separate Form 26QBs.

What are the deadlines for Form 26QB and Form 16B?

Form 26QB (challan-cum-statement, filed on tin-nsdl.com) is due within 30 days from the end of the month in which the deduction was made. Form 16B (TDS certificate, downloaded from TRACES) must be issued to the seller within 15 days after Form 26QB is filed. Late filing attracts 1% per month interest plus a ₹200/day late fee capped at the TDS amount.

Interactive Calculator · 2026

TDS on Property — Section 194-IA

The 1% TDS the buyer must deduct and deposit when buying property valued ₹50.00 L or more. Joint-buyer splits, 20% no-PAN rate, NRI-seller flag for Section 195 cases.

Transaction

Sale consideration (₹)

₹75.00 L

Number of buyers

Each buyer files their own Form 26QB for their share.

Seller status

Seller is a resident of India
If the seller is an NRI, Section 194-IA doesn’t apply — Section 195 does (much higher TDS). Uncheck this for NRI sellers.Seller has furnished a valid PAN
Without a PAN, Section 206AA forces TDS at 20% instead of 1%.

TDS under Section 194-IA

₹0total TDS (1% of sale)

Seller type:

Sale consideration split

On a sale of ₹75.00 L, the buyer withholds ₹0 and pays the seller ₹0 net.

The withheld 1% is deposited with the government via Form 26QB, not paid to the seller in cash. The seller claims credit for it in their ITR.

Sale consideration

₹75.00 L

TDS (1 buyer)

₹75,000

Seller receives (net)

₹74.25 L

Sale − TDS

Rate applied

s.194-IA

Where this ₹0 goes

Buyer deducts

1% at payment

›

Form 26QB

≤ 30 days, end of mo.

›

Govt. deposit

TIN-NSDL portal

›

Form 16B → seller

≤ 15 days from TRACES

TDS on property — process artefacts

Form 26QB

Form 16B

TIN-NSDL portal

TRACES download

Closing the buy — now plan interiors

Once TDS is deposited and registration is done, DesignAI gets your new home ready.

EMI vs Interior → Use in DesignAI

Compliance timeline

1Deduct at time of payment. For instalment payments, deduct at every instalment; TDS is on the instalment amount.
2Form 26QB (deposit + return) — within 0 days from the end of the month in which deduction was made. File at tin-nsdl.com.
3Form 16B (TDS certificate to seller) — within 0 days after Form 26QB is filed. Download from TRACES and hand over to the seller.

Late filing of Form 26QB attracts interest at 1% per month and a late fee of ₹200/day (capped at the TDS amount). Not worth the miss.

How this works

Threshold ₹50.00 L. Section 194-IA applies only when the total sale consideration is ₹50.00 L or more. The threshold is on the transaction, not on each buyer’s share — so a ₹60 L property bought equally by two co-owners still attracts TDS.
Buyer is the deductor. You, the buyer, must withhold 1% of the sale price and deposit it with the government. The seller receives 99% of the sale price.
No-PAN seller → 20%. If the seller has not given you a valid PAN, Section 206AA forces TDS at 20% — a massive jump. Always get the PAN in writing before signing.
NRI sellers are different. Section 194-IA is silent on non-resident sellers; Section 195 applies, with TDS based on LTCG/STCG at 12.5%/slab rates plus surcharge and cess. Consult a CA — don’t self-serve.
Agricultural land exempt. Sale of rural agricultural land is outside 194-IA regardless of value.

Deep-dive: TDS on Property Purchase in India — 2026 Guide

Indicative only. Always consult a Chartered Accountant for TDS compliance on large transactions. Form 26QB requires both parties’ PAN, property details, date of agreement, date of payment, and sale consideration.

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TDS on Property Purchase in India — 2026 Guide

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