TDS on Purchase of Property (Section 194-IA)
Stay Compliant While Buying Property. Avoid Penalties Later.
Buying property isn’t just about registration and payment. There’s a tax responsibility that most buyers overlook—TDS under Section 194-IA.
At N D Savla & Associates, we ensure your property transaction is fully compliant, from TDS deduction to filing Form 26QB—so you don’t face penalties later.
What is TDS on Property Purchase?
Under Section 194-IA, the buyer of an immovable property must deduct TDS at the time of payment to the seller, provided the property value exceeds ₹50 lakhs.
Key Rules You Should Know
- TDS is applicable if property value is ₹50 lakhs or more
- TDS rate is 1% of the total sale consideration
- Buyer is responsible for deducting and depositing TDS
- No TAN required—PAN of buyer and seller is sufficient
- TDS must be deposited using Form 26QB
Latest Rules & Updates
Stamp Duty Value Consideration
TDS applies on higher of actual sale value or stamp duty value.
Higher TDS Without PAN
If seller PAN is not available, TDS may go up to 20%.
Multiple Buyers/Sellers
Separate Form 26QB must be filed for each buyer-seller combination.
Strict Filing Timeline
TDS must be deposited within 30 days from the end of the month of deduction.
Form 16B Issuance
Buyer must issue TDS certificate (Form 16B) to the seller.
Penalty for Non-Compliance
Interest and penalties apply for delay in deduction or filing.
Common Mistakes Buyers Make
- Not deducting TDS at all
- Incorrect calculation on lower value instead of stamp duty value
- Missing filing deadlines for Form 26QB
- Not issuing Form 16B to the seller
How N D Savla & Associates Helps
- Accurate TDS calculation on property transactions
- Filing of Form 26QB
- Form 16B generation and issuance
- Correction filings and notice handling
- End-to-end compliance support
Buying Property? Don’t Miss the TDS Step
Ensure your transaction is fully compliant with expert support from N D Savla & Associates.
Get in TouchF.A.Q.
Section 194IA requires property buyers to deduct 1% TDS when purchasing property valued at ₹50 lakh or more from a resident seller.
The buyer of the property is responsible for deducting and depositing the TDS with the Income Tax Department.
TDS on property purchase is deposited using Form 26QB on the Income Tax portal.
Form 16B is the TDS certificate issued to the seller after the buyer deposits the TDS and files Form 26QB.
The TDS must be deposited within 30 days from the end of the month in which the deduction is made.
No. TDS under Section 194IA is not applicable if the property value is below ₹50 lakh.
