TDS on Property Purchase Calculator India 2026
If you are buying a property for ₹50 lakh or more in India, you must deduct 1% TDS from the payment to the seller under Section 194IA and deposit it with the government. This calculator tells you exactly how much, when, and which form to file.
TDS rates at a glance — Section 194IA
| Scenario | TDS Rate | Form | Note |
|---|---|---|---|
| Resident buyer + Resident seller, price ≥ ₹50L | 1% | Form 26QB | On full consideration, not just the excess over ₹50L |
| Resident buyer + Resident seller, price < ₹50L | NIL | N/A | No TDS under Section 194IA |
| Resident buyer + NRI seller (LTCG, held >2 yrs) | 20% + surcharge + cess | Form 27Q | Or DTAA rate if applicable; NRI can apply for lower TDS certificate (Form 13) |
| Resident buyer + NRI seller (STCG, held ≤2 yrs) | 30% + surcharge + cess | Form 27Q | Engage CA — NRI seller TDS is complex |
| NRI buyer + Resident seller, price ≥ ₹50L | 1% | Form 26QB | Same as resident buyer for resident seller scenario |
NRI seller scenarios require CA consultation — actual rate depends on holding period, DTAA treaty, and whether Form 13 lower-deduction certificate is obtained.
Section 194IA — the 3-step process
- Deduct at source. When making each payment to the seller (booking amount, agreement, possession), deduct 1% TDS from the amount payable. Do NOT pay the full consideration to the seller.
- Deposit within 30 days. Deposit the TDS to the government via Form 26QB on tin.nsdl.com within 30 days from the end of the month in which you made the payment. Late deposit attracts interest at 1.5%/month.
- Issue Form 16B. After Form 26QB is processed (typically 10–15 days), download Form 16B from traces.gov.in and issue it to the seller within 15 days of the Form 26QB filing due date.
Frequently asked questions
When is TDS on property purchase applicable?
Section 194IA of the Income Tax Act requires the buyer to deduct 1% TDS when purchasing immovable property (other than agricultural land) for a consideration of ₹50 lakh or more. This applies to both resident and NRI buyers when the seller is a resident Indian. For NRI sellers, a different provision applies with higher rates.
Is TDS calculated on stamp duty value or agreement value?
TDS under Section 194IA is calculated on the actual agreement/consideration value — what you actually pay the seller. If the stamp duty value (circle rate) is higher, no TDS adjustment is needed for 194IA purposes (unlike under Section 50C for capital gains, which uses circle rate if higher).
What happens if the buyer does not deduct TDS?
The buyer becomes an assessee-in-default under Section 201 of the Income Tax Act. Consequences: interest at 1.5% per month on the TDS amount from the date of deduction to deposit, penalty equal to the TDS amount under Section 271C, and prosecution under Section 276B in serious defaults. The seller can also face scrutiny for the shortfall.
How to file Form 26QB online?
File at tin.nsdl.com → TDS on Property → Online Form 26QB. You need: PAN of buyer and seller, property details, consideration amount, payment date, bank challan. After filing, pay tax via net banking. Form 16B (TDS certificate to be given to seller) is generated automatically after filing.
If paying in instalments, when do I deduct TDS?
TDS must be deducted from each payment instalment — not just at final possession. So if you pay ₹20L booking amount, ₹30L on agreement, and ₹20L on possession, you deduct 1% (₹20,000) from the booking amount, ₹30,000 from agreement, and ₹20,000 at possession. Each instalment requires a separate Form 26QB filing within 30 days of the month of payment.
Does TDS apply to agricultural land?
No. Section 194IA specifically excludes agricultural land. However, converted land (agricultural converted to residential) is covered once converted. Verify land classification in the sale deed carefully before deciding.
Can an NRI seller claim a refund if TDS is excess?
Yes. NRI sellers can file an Income Tax Return (ITR) after the financial year and claim a refund for any excess TDS paid over the actual tax liability. This is especially relevant when the NRI holds the property long-term and the indexed capital gain is much lower than the TDS deducted at 20%. The NRI can also apply for a lower deduction certificate (Form 13) before the transaction to reduce TDS at source.
What is Form 16B?
Form 16B is the TDS certificate that the buyer issues to the seller after filing Form 26QB. It must be issued within 15 days of the due date for filing Form 26QB. The seller uses Form 16B to claim credit for TDS against their income tax liability.