TDS on property purchase calculator (Section 194-IA)
When you buy immovable property for ₹50 lakh or more from a resident seller, you must deduct 1% TDS from every payment and deposit it with Form 26QB within 30 days of the month end. The threshold is on the total consideration (or stamp-duty value, whichever is higher), and once crossed TDS applies to the whole amount, not just the excess.
- Rate
- 1% on the full consideration
- TDS per instalment
- ₹25,000
- Net amount paid to seller
- ₹74.25 L
- Compliance
- File Form 26QB for each payment within 30 days of month end; give the seller Form 16B. No TAN needed.
Copy link to this calculation · JSON API · Estimates only; verify rates with the source below.
How it is calculated
Section 194-IA: if consideration or stamp-duty value is ₹50 lakh or more, deduct 1% (20% if the seller's PAN is invalid) on the higher of the two, on every instalment including the booking amount. Agricultural land is exempt. For NRI sellers section 195 applies instead at the capital-gains rate on the whole sale value unless a lower-deduction certificate is obtained.
Worked example
₹75 lakh flat, circle-rate value ₹70 lakh, three instalments: TDS 1% of ₹75 lakh = ₹75,000, i.e. ₹25,000 per instalment; the seller receives ₹74.25 lakh and gets credit for the TDS in Form 26AS.
Frequently asked questions
Is TDS on property deducted on the amount above ₹50 lakh?
No. Once the total reaches ₹50 lakh, 1% applies to the entire consideration from the first payment.
Who pays TDS on property, buyer or seller?
The buyer deducts and deposits it; the seller gets credit against their capital-gains tax. If two buyers pay jointly, each files a 26QB for their share.
What if I forget to deduct TDS?
Interest at 1% per month for non-deduction (1.5% for non-deposit), a late-filing fee of ₹200 per day for 26QB and possible penalty; the seller's credit is also delayed.
Sources and what to verify: Income-tax Act s.194-IA, s.195; Form 26QB rules.
Estimates for planning only; not financial, legal or tax advice. Figures reflect common practice and published rates as of November 2026. Found an outdated rate? Email hello@zeorent.com.