TDS on Property Calculator 2026
Section 194-IA TDS on Sale of Property
Calculate TDS payable on property purchase above ₹50 Lakh, check Form 26QB due date, and estimate late filing interest & penalty instantly.
TDS on Property Calculator
Section 194-IA — TDS on transfer of immovable property
What is TDS on Property and How is it Calculated?
TDS on property refers to Tax Deducted at Source under Section 194-IA of the Income Tax Act, 1961. When a buyer purchases immovable property (other than agricultural land) worth ₹50 Lakh or more, the buyer must deduct 1% TDS from the sale consideration before paying the seller, and deposit it with the government.
This rule applies regardless of whether the seller makes a profit or loss on the sale — TDS is deducted on the total sale value, not on capital gains. The seller can later claim credit for this TDS while filing their Income Tax Return (ITR), and any excess gets refunded.
Applicable when: Sale Consideration ≥ ₹50,00,000
Net Payment to Seller = Sale Consideration − TDS Amount
Form to File: Form 26QB (within 30 days from end of month of payment)
Many buyers mistakenly think TDS applies only to the amount above ₹50 Lakh. This is incorrect. If the property value is ₹50 Lakh or more, 1% TDS applies on the entire sale value, not just the portion exceeding ₹50 Lakh. For a ₹60 Lakh property, TDS is ₹60,000 (1% of ₹60 Lakh), not ₹10,000.
TDS on Property — Quick Reference Table
| Property Value | TDS Applicable? | TDS Rate | TDS Amount | Net to Seller |
|---|---|---|---|---|
| ₹45,00,000 | ❌ No | — | ₹0 | ₹45,00,000 |
| ₹50,00,000 | ✅ Yes | 1% | ₹50,000 | ₹49,50,000 |
| ₹75,00,000 | ✅ Yes | 1% | ₹75,000 | ₹74,25,000 |
| ₹1,00,00,000 | ✅ Yes | 1% | ₹1,00,000 | ₹99,00,000 |
| ₹2,50,00,000 | ✅ Yes | 1% | ₹2,50,000 | ₹2,47,50,000 |
If Form 26QB is not filed within 30 days from the end of the month in which payment was made, a late fee of ₹200 per day applies under Section 234E (capped at the TDS amount). Additionally, interest of 1% per month applies for late deduction and 1.5% per month for late deposit of TDS under Section 201(1A). Always file Form 26QB on time to avoid these charges.
Step-by-Step: How to Pay TDS on Property
- 01 Visit the TIN-NSDL / e-Filing portal and select Form 26QB under “TDS on Sale of Property”
- 02 Enter PAN of buyer and seller — both PANs are mandatory; TDS cannot be deposited without valid PAN
- 03 Fill in property details, sale consideration, and date of payment/credit
- 04 Make payment online via net banking (e-pay tax) or generate a challan for offline payment at bank
- 05 After 5-7 days, download Form 16B (TDS certificate) from TRACES and share with the seller