TDS on property purchase calculator
The 1% the buyer must deduct — computed on the right base, with the ₹50 lakh rule, the no-PAN 20% rate, NRI-seller rates and your exact filing deadline.
A buyer of Indian property worth ₹50 lakh or more must deduct 1% TDS on the higher of the price or the stamp duty value and deposit it within 30 days of the month-end — under Section 194-IA of the Income-tax Act 1961, now Section 393 of the Income-tax Act 2025. This calculator gives the exact amount, the form to file, and the special rates when the seller is an NRI or has no PAN.
Work out the TDS on your purchase
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What the buyer does, step by step
Estimates for planning, not tax advice. Rural agricultural land is outside these rules, instalment payments each need deduction at 1%, and interest and late fees apply to missed deadlines. For NRI purchases especially, involve a chartered accountant before the first payment — or ask us.
How does the 1% TDS on property purchase work?
Section 194-IA of the Income-tax Act 1961 makes the buyer a tax collector: on any purchase of immovable property (other than rural agricultural land) from a resident seller for ₹50 lakh or more, the buyer withholds 1% of the higher of the agreement price or the stamp duty value, deposits it against the seller's PAN, and pays the seller the balance. The seller then claims that 1% as tax already paid. Since 1 October 2024, the ₹50 lakh test is applied to the total deal value across all buyers and sellers together — splitting a ₹90 lakh flat between two co-buyers at ₹45 lakh each no longer escapes it. From 1 April 2026, the same rule lives in Section 393 of the Income-tax Act 2025, filed on Form 141 instead of Form 26QB.
Why is buying from an NRI so different?
Because the seller is a non-resident, Section 195 applies instead: there is no ₹50 lakh threshold, the default deduction is on the entire sale price, and the rate reflects the seller's capital gains tax — 12.5% plus surcharge and cess for long-term holdings (up to 14.95% all-in), or 30%-plus for short-term. The buyer also needs a TAN and files quarterly statements. The practical route is for the NRI to obtain a lower-deduction certificate from the tax officer so the deduction is computed on the actual gain instead of the full price. Never treat an NRI purchase like a resident one — the buyer personally carries the shortfall if too little is deducted.
Common questions
How much TDS is deducted when buying a property in India?
When you buy property worth ₹50 lakh or more from a resident seller, you must deduct 1% TDS on the higher of the actual price or the stamp duty value — under Section 194-IA of the Income-tax Act 1961, and from 1 April 2026 under Section 393 of the Income-tax Act 2025. The 1% applies to the entire amount, not just the part above ₹50 lakh. If the seller has no PAN, the rate becomes 20%. If the seller is an NRI, a much higher deduction under Section 195 applies instead.
Is TDS deducted on the full property value or only above ₹50 lakh?
On the full value. Once the price or the stamp duty value reaches ₹50 lakh, the 1% is charged on the entire higher-of amount from the first rupee. A ₹60 lakh flat means ₹60,000 TDS, not 1% of ₹10 lakh. TDS is skipped only when both the consideration and the stamp duty value are below ₹50 lakh — and since 1 October 2024 the ₹50 lakh test uses the combined total across all buyers and sellers, so splitting payments cannot avoid it.
What is the deadline for Form 26QB after deducting TDS?
The buyer must deposit the TDS with challan-cum-statement Form 26QB within 30 days from the end of the month in which it was deducted, and then give the seller the TDS certificate Form 16B within 15 days of that due date. For transactions from 1 April 2026 under the Income-tax Act 2025, Form 26QB is replaced by Form 141 (Schedule B) and Form 16B by Form 132, with the same 30-day pattern. No TAN is needed — the buyer files with their own PAN.
How much TDS applies if the seller is an NRI?
Buying from an NRI is different: Section 195 applies with no ₹50 lakh threshold, and by default TDS is deducted on the entire sale price. For property held over 24 months and sold on or after 23 July 2024, the long-term rate is 12.5% plus surcharge and cess — effectively 13% up to ₹50 lakh, 14.30% between ₹50 lakh and ₹1 crore, and 14.95% above ₹1 crore. For short-term holdings the default deduction is 30% plus surcharge and cess. The NRI can apply for a lower-deduction certificate so tax is deducted only on the actual gain, and the buyer needs a TAN and must file the quarterly non-resident TDS statement.
Is TDS required when a society member gets a flat in redevelopment?
Receiving your new flat in exchange for the old one is not a cash purchase, so the buyer-style 1% TDS under Section 194-IA is generally not how that step is taxed — the member's gain is dealt with under Section 45(5A) in the completion-certificate year. The 1% TDS becomes relevant if you later sell the new flat for ₹50 lakh or more, or if you buy extra area from the developer worth ₹50 lakh or more.
What happens if the buyer does not deduct or deposit the TDS?
The buyer is treated as an assessee in default: interest applies for late deduction or late deposit, a late-filing fee applies for a delayed Form 26QB, and penalties can follow. The liability sits on the buyer, not the seller, so the safe practice is to deduct at the time of each payment — including instalments — and deposit within the 30-day window.
Related tools & guides
- Capital gains tax calculator — the seller-side tax on the same deal
- Stamp duty 80C deduction calculator — recover tax on your purchase costs
- TDS on property purchase — the full guide
- Capital gains in redevelopment — Section 45(5A)
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