TDS on Property Purchase Calculator, Section 194-IA
A buyer of immovable property (other than agricultural land) must deduct 1% TDS when the consideration or stamp duty value is ₹50 lakh or more. The TDS is computed on the higher of the two values and deposited through Form 26QB within 30 days of the month end. Without the seller’s PAN the rate is 20%.
TDS on Property Purchase Calculator (Section 194-IA)
Check whether 1% TDS applies on a property purchase, how much to deduct, and what to pay the seller after deduction.
Leave 0 if not known or lower than price
TDS applies on this purchase
₹75,000
1% of ₹75,00,000
Value on which TDS is computed
₹75,00,000
TDS per instalment (1)
₹75,000
Net payable to seller
₹74,25,000
For purchases from resident sellers only. Non-resident sellers fall under Section 195 with different rates and a TAN requirement. Interest and late fees for delayed deposit are not included here.
Section 194-IA in plain terms
When you buy property worth ₹50 lakh or more from a resident seller, the law makes you a tax deductor for one transaction. You hold back 1% of the price, pay it to the government in the seller’s name, and give the seller a certificate (Form 16B) so they can claim the credit when they file their return. The seller’s capital gains tax is computed separately; the 1% is just an advance collection.
Two details trip people up. The threshold and the deduction are both measured on the higher of the agreed price and the stamp duty (circle rate) value, not just the agreed price. And the limit applies to the property as a whole, so splitting the purchase between co-buyers does not get you under it.
How to use the calculator
- Enter the agreed consideration and, if you know it, the stamp duty value from the sale deed or the sub-registrar’s valuation.
- Untick the PAN box if the seller has not provided a valid PAN. The rate jumps to 20%.
- If you are paying a builder in instalments, enter the number of instalments to see the TDS per payment.
- The result shows whether TDS applies, the base value used, the amount to deduct and the net you pay the seller.
Example
A flat is bought for ₹75 lakh and the stamp duty value is ₹72 lakh. TDS is 1% of ₹75 lakh, so ₹75,000. The buyer pays the seller ₹74,25,000 and deposits ₹75,000 via Form 26QB within 30 days of the month end. If the deal closes on 12 August, the 26QB is due by 30 September.
Common mistakes we see in practice
- Deducting on the agreed price when the stamp duty value is higher.
- Filing one 26QB for a joint purchase instead of one per buyer-seller pair.
- Missing the 30-day deadline and paying ₹200 a day under 234E on top of interest.
- Treating an NRI seller as resident and deducting 1% instead of applying Section 195.
- Not collecting Form 16B, leaving the seller without credit in Form 26AS.
Section 194-IA at a glance
| Item | Rule |
|---|---|
| Threshold | ₹50,00,000 (consideration or stamp duty value, whichever is higher) |
| Rate | 1% with seller PAN; 20% without |
| Who deducts | Buyer, no TAN required |
| Form | 26QB, one per buyer-seller combination |
| Due date | 30 days from end of month of deduction |
| Certificate | Form 16B to seller within 15 days of 26QB due date |
| Excluded | Rural agricultural land; NRI sellers (Section 195 applies) |
Frequently Asked Questions
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