Amogh N P
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TDS on Property — Section 194-IA Calculator

The 1% TDS the buyer must deduct and deposit when buying property valued ₹50.00 L or more. Handles joint-buyer splits, the 20% rate for no-PAN sellers, and flags NRI-seller cases (where Section 195 applies instead).

Transaction

₹75.00 L

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

Seller status

TDS under Section 194-IA

₹75,000total TDS (1% of sale)

Sale consideration

₹75.00 L

TDS (1 buyer)

₹75,000

Seller receives (net)

₹74.25 L

Sale − TDS

Rate applied

1%

s.194-IA

Compliance timeline

  1. 1Deduct at time of payment. For instalment payments, deduct at every instalment; TDS is on the instalment amount.
  2. 2Form 26QB (deposit + return) — within 30 days from the end of the month in which deduction was made. File at tin-nsdl.com.
  3. 3Form 16B (TDS certificate to seller) — within 15 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

Related tools: Stamp Duty Calculator · Capital Gains Tax Calculator · Home Loan Affordability

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.