TDS on Property Purchase Calculator — Section 194-IA (2026)
Buying a property above ₹50 lakh? You are legally required to deduct 1% TDS from the seller's payment and deposit it using Form 26QB. Missing this attracts ₹200/day penalty. Calculate your exact TDS, due date, and net amount payable to the seller — instantly.
Mandatory for every buyer — not optional
Section 194-IA TDS is the buyer's obligation, not the seller's. Even if your seller says “don't deduct TDS,” you are liable. If the Income Tax Department finds non-deduction, you pay the TDS + interest + penalty.
How TDS on property is calculated (2026)
Determine the base amount
TDS base = higher of sale consideration (agreed price) or stamp duty value (circle rate × area). If your seller agrees to sell at ₹80L but the stamp duty value is ₹85L, TDS is on ₹85L.
Apply 1% rate
TDS = Base amount × 1%. On a ₹1 crore property: ₹1,00,000. Pay ₹99,00,000 to seller; deposit ₹1,00,000 to the government.
For joint purchases — deduct proportionally
If two buyers (e.g., husband + wife) each pay ₹50L for a ₹1Cr flat, each buyer deducts TDS on their own share: ₹50,000 each. Each files a separate Form 26QB.
TDS rates by seller type — 2026
TDS Rate Summary
| Property value | Threshold | TDS rate | TDS on ₹1 Cr property |
|---|---|---|---|
| Resident seller — any amount below ₹50L | < ₹50 lakh | NIL | Not applicable |
| Resident seller — ₹50L and above | ≥ ₹50 lakh | 1% of sale price | ₹1,00,000 |
| Resident seller — no PAN provided | ≥ ₹50 lakh | 20% of sale price | ₹20,00,000 |
| NRI seller (Section 195) | Any amount | 20% LTCG + cess | ~₹22,88,000* |
*NRI LTCG TDS = 20% + 10% surcharge + 4% HEC = 22.88% effective rate for sale consideration above ₹50L
Quick TDS examples
₹45 lakh flat
NIL
Below ₹50L threshold
₹75 lakh flat
₹75,000
1% × ₹75L (resident seller with PAN)
₹1.5 Cr flat
₹1,50,000
1% × ₹1.5Cr. Net paid to seller: ₹1,48,50,000
₹80L — no PAN
₹16,00,000
20% × ₹80L (seller didn't provide PAN)
Form 26QB — step by step
Form 26QB Filing Process
| Step | Action | Timeline |
|---|---|---|
| 1 | Deduct 1% from payment to seller | At time of payment |
| 2 | File Form 26QB on income tax portal | Within 30 days from month-end |
| 3 | Pay TDS to government via challan | Same time as Form 26QB |
| 4 | Download Form 16B (TDS certificate) | Within 15 days of Form 26QB due date |
| 5 | Share Form 16B with seller | For seller's tax return |
Where to file: Visit tin-nsdl.com → Online Services → TDS on Property → Form 26QB. You need the seller's PAN, your PAN, and property details. Payment is online via net banking.
Penalties for non-compliance
Section 194-IA Penalties 2026
| Default | Penalty / Interest | Rate |
|---|---|---|
| Late TDS deduction | Interest | 1% per month from due date |
| Late TDS deposit | Interest | 1.5% per month from deduction date |
| Late Form 26QB filing | Penalty | ₹200 per day (capped at TDS amount) |
| Non-deduction (wilful) | Penalty + prosecution | Equal to TDS amount + up to 7 yrs imprisonment |
Frequently asked questions
What is TDS on property purchase in India?
Under Section 194-IA of the Income Tax Act, the buyer of immovable property (other than agricultural land) must deduct 1% TDS from the payment made to the seller if the property value exceeds ₹50 lakh. The TDS is calculated on the higher of the sale consideration or the stamp duty value. The buyer must deposit this TDS using Form 26QB within 30 days from the end of the month in which TDS was deducted.
What is the TDS rate on property purchase in 2026?
The TDS rate under Section 194-IA is 1% of the sale price or stamp duty value (whichever is higher). If the seller does not provide their PAN, the rate jumps to 20%. This rate applies to all residential and commercial property purchases above ₹50 lakh — there is no change in the 2026 Budget.
When must Form 26QB be filed?
Form 26QB (the TDS challan-cum-statement) must be filed online within 30 days from the end of the month in which TDS was deducted. For example, if you made payment to the seller on June 15, 2026, you must file Form 26QB by July 31, 2026. Late filing attracts a penalty of ₹200 per day (capped at the TDS amount).
What if the seller is an NRI?
If the seller is a Non-Resident Indian (NRI), Section 194-IA does NOT apply. Instead, Section 195 applies — TDS must be deducted at 20% (plus surcharge and cess) on Long-Term Capital Gains, or at applicable slab rates for Short-Term Capital Gains. The NRI seller can apply for a Lower Deduction Certificate from the Income Tax Department to reduce this rate.
Related calculators
Disclaimer: For educational purposes. Tax laws can change — verify with a chartered accountant or the Income Tax Department before filing. TDS rules for NRI sellers (Section 195) are more complex and require professional guidance.