TDS on Property Calculator — Calculate 1% TDS on Purchase — India 2026
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.
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.
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Income Tax Calculator (India FY 2025-26)
How Tax Calculation Works
Income tax is calculated on your total taxable income after deducting eligible exemptions and deductions from your gross income. The tax is applied progressively — you pay a lower rate on initial income slabs and higher rates only on income that exceeds each threshold. This means moving into a "higher tax bracket" does not mean your entire income is taxed at the higher rate. Understanding marginal vs effective tax rate is crucial: your marginal rate applies only to the last rupee earned, while your effective rate is the average across all slabs.
Tax-Saving Strategies
Under the old regime, maximize deductions: Section 80C allows up to Rs 1.5 lakh through PPF, ELSS, EPF, and life insurance. Section 80D covers health insurance premiums up to Rs 25,000 (Rs 50,000 for senior citizens). Section 80CCD(1B) offers an additional Rs 50,000 deduction for NPS contributions. Home loan interest up to Rs 2 lakh is deductible under Section 24. Under the new regime, the Rs 75,000 standard deduction and lower slab rates may save you more if your total deductions are below Rs 3.75 lakh. Calculate under both regimes before choosing.
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.
Which tax regime should I choose — old or new?
Choose the new regime if your total deductions are below Rs 3.75 lakh. Choose the old regime if you claim HRA, 80C (Rs 1.5L), 80D, home loan interest, and NPS totaling more than Rs 3.75 lakh. Salaried employees can switch every year.
Is income up to Rs 12 lakh really tax-free?
Under the new regime for FY 2025-26, income up to Rs 12 lakh is effectively tax-free due to Section 87A rebate. After Rs 75,000 standard deduction, taxable income is Rs 11.25 lakh which qualifies for full rebate. However, income even slightly above Rs 12 lakh loses this entire benefit.
How can I save more tax legally?
Under the old regime, maximize 80C (Rs 1.5L via PPF, ELSS, EPF), 80D (Rs 25K-50K for health insurance), 80CCD(1B) (Rs 50K for NPS), HRA exemption, and home loan interest (Rs 2L under Section 24).
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Last updated: March 2026