TDS on Property Calculator — Calculate 1% TDS on Purchase
Calculate TDS on property purchase above Rs 50 lakh under Section 194IA. Understand buyer responsibility and how to deposit TDS to avoid penalties.
Under Section 194IA of the Income Tax Act buyers must deduct 1% TDS when purchasing property valued above Rs 50 lakh. This TDS must be deposited within 30 days of the month in which deduction is made using Form 26QB. Failure to deduct or deposit TDS results in interest penalties and potential prosecution. Both buyer and seller need PAN numbers for this transaction.
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Income Tax Calculator (India FY 2025-26)
Key Information
| Parameter | Details |
|---|---|
| TDS Rate on Property | 1% of sale consideration |
| Threshold for TDS | Rs 50 lakh (property value) |
| Deposit Deadline | 30 days after month of deduction |
| Penalty for Non-Deduction | 1% per month interest |
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Use Calculator NowFrequently Asked Questions
How to calculate TDS on Rs 80 lakh property?
On an Rs 80 lakh property the buyer must deduct 1% TDS = Rs 80000. The buyer pays Rs 79.2 lakh to the seller and deposits Rs 80000 as TDS through Form 26QB. The seller can claim credit for this TDS when filing their income tax return. TDS applies on the total consideration including any additional amounts for parking or amenities.
Who is responsible for deducting TDS on property?
The buyer is legally responsible for deducting and depositing TDS on property purchases above Rs 50 lakh. Both buyer and seller must have PAN numbers. The buyer must file Form 26QB online within 30 days and issue Form 16B to the seller within 15 days of depositing TDS. These are mandatory legal requirements not optional.
What if the seller is an NRI?
For NRI sellers TDS rates are much higher: 20% on long-term capital gains (property held over 2 years) or 30% on short-term gains. The buyer must obtain a TAN (Tax Deduction Account Number) for NRI property transactions. The NRI seller can apply for a lower TDS certificate under Section 197 if their actual tax liability is lower than the standard TDS rate.
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Last updated: March 2026