{"id":673,"date":"2026-06-13T04:27:20","date_gmt":"2026-06-13T04:27:20","guid":{"rendered":"https:\/\/mybharatportal.com\/tools\/?page_id=673"},"modified":"2026-10-24T08:35:41","modified_gmt":"2026-10-24T08:35:41","slug":"tds-on-property-calculator","status":"publish","type":"page","link":"https:\/\/mybharatportal.com\/tools\/tds-on-property-calculator\/","title":{"rendered":"TDS on Property Purchase 2026 \u2014 Section 194-IA Guide"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\">TDS on Property Purchase in India 2026 \u2014 Complete Guide (Section 194-IA)<\/h1>\n\n\n\n<div id=\"tds-prop-calc\" style=\"--tp-ink:#0f2a24; --tp-paper:#fbfaf7; --tp-card:#ffffff; --tp-accent:#0d6e5f; --tp-accent-dark:#08483e; --tp-saffron:#c8602b; --tp-line:#e3e0d6; --tp-muted:#6b7570; font-family:'Segoe UI',system-ui,-apple-system,Arial,sans-serif; max-width:760px; margin:32px auto; background:var(--tp-paper); border:1px solid var(--tp-line); border-radius:14px; padding:0; overflow:hidden; color:var(--tp-ink);\">\n\n  <div style=\"background:linear-gradient(135deg,var(--tp-accent-dark),var(--tp-accent)); padding:22px 26px; color:#fff;\">\n    <div style=\"font-size:12px; letter-spacing:.08em; text-transform:uppercase; opacity:.85; margin-bottom:4px;\">Section 194-IA &amp; 195 \u00b7 FY 2025-26<\/div>\n    <h3 style=\"margin:0; font-size:22px; font-weight:700;\">TDS on Property Purchase Calculator<\/h3>\n    <p style=\"margin:6px 0 0; font-size:14px; opacity:.9;\">Know your exact TDS, filing form, and due date before you pay the seller.<\/p>\n  <\/div>\n\n  <div style=\"padding:22px 26px;\">\n\n    <!-- Seller type toggle -->\n    <div style=\"display:flex; gap:8px; margin-bottom:20px; background:#eef0ec; border-radius:10px; padding:4px;\">\n      <button type=\"button\" id=\"tp-tab-res\" onclick=\"tpSetSeller('resident')\" style=\"flex:1; padding:10px 12px; border:none; border-radius:8px; background:var(--tp-accent); color:#fff; font-weight:600; font-size:14px; cursor:pointer;\">Resident Seller<\/button>\n      <button type=\"button\" id=\"tp-tab-nri\" onclick=\"tpSetSeller('nri')\" style=\"flex:1; padding:10px 12px; border:none; border-radius:8px; background:transparent; color:var(--tp-ink); font-weight:600; font-size:14px; cursor:pointer;\">NRI Seller<\/button>\n    <\/div>\n\n    <!-- RESIDENT PANEL -->\n    <div id=\"tp-panel-resident\">\n      <div style=\"display:grid; grid-template-columns:1fr 1fr; gap:16px; margin-bottom:16px;\">\n        <div>\n          <label style=\"display:block; font-size:13px; font-weight:600; margin-bottom:6px; color:var(--tp-muted);\">Sale Consideration (\u20b9)<\/label>\n          <input type=\"number\" id=\"tp-sale\" value=\"6500000\" min=\"0\" step=\"10000\" oninput=\"tpCalcResident()\" style=\"width:100%; box-sizing:border-box; padding:10px 12px; border:1px solid var(--tp-line); border-radius:8px; font-size:15px;\">\n        <\/div>\n        <div>\n          <label style=\"display:block; font-size:13px; font-weight:600; margin-bottom:6px; color:var(--tp-muted);\">Stamp Duty \/ Circle Rate Value (\u20b9)<\/label>\n          <input type=\"number\" id=\"tp-stamp\" value=\"6800000\" min=\"0\" step=\"10000\" oninput=\"tpCalcResident()\" style=\"width:100%; box-sizing:border-box; padding:10px 12px; border:1px solid var(--tp-line); border-radius:8px; font-size:15px;\">\n        <\/div>\n      <\/div>\n\n      <div style=\"display:grid; grid-template-columns:1fr 1fr; gap:16px; margin-bottom:20px;\">\n        <div>\n          <label style=\"display:block; font-size:13px; font-weight:600; margin-bottom:6px; color:var(--tp-muted);\">Date of Payment<\/label>\n          <input type=\"date\" id=\"tp-date\" oninput=\"tpCalcResident()\" style=\"width:100%; box-sizing:border-box; padding:10px 12px; border:1px solid var(--tp-line); border-radius:8px; font-size:15px;\">\n        <\/div>\n        <div>\n          <label style=\"display:block; font-size:13px; font-weight:600; margin-bottom:6px; color:var(--tp-muted);\">Seller&#8217;s PAN furnished?<\/label>\n          <select id=\"tp-pan\" onchange=\"tpCalcResident()\" style=\"width:100%; box-sizing:border-box; padding:10px 12px; border:1px solid var(--tp-line); border-radius:8px; font-size:15px; background:#fff;\">\n            <option value=\"yes\">Yes<\/option>\n            <option value=\"no\">No<\/option>\n          <\/select>\n        <\/div>\n      <\/div>\n\n      <div id=\"tp-result-resident\"><\/div>\n    <\/div>\n\n    <!-- NRI PANEL -->\n    <div id=\"tp-panel-nri\" style=\"display:none;\">\n      <div style=\"display:grid; grid-template-columns:1fr 1fr; gap:16px; margin-bottom:16px;\">\n        <div>\n          <label style=\"display:block; font-size:13px; font-weight:600; margin-bottom:6px; color:var(--tp-muted);\">Sale Consideration (\u20b9)<\/label>\n          <input type=\"number\" id=\"tp-nri-sale\" value=\"15000000\" min=\"0\" step=\"10000\" oninput=\"tpCalcNri()\" style=\"width:100%; box-sizing:border-box; padding:10px 12px; border:1px solid var(--tp-line); border-radius:8px; font-size:15px;\">\n        <\/div>\n        <div>\n          <label style=\"display:block; font-size:13px; font-weight:600; margin-bottom:6px; color:var(--tp-muted);\">Holding Period<\/label>\n          <select id=\"tp-nri-holding\" onchange=\"tpCalcNri()\" style=\"width:100%; box-sizing:border-box; padding:10px 12px; border:1px solid var(--tp-line); border-radius:8px; font-size:15px; background:#fff;\">\n            <option value=\"ltcg\">More than 24 months (LTCG)<\/option>\n            <option value=\"stcg\">24 months or less (STCG)<\/option>\n          <\/select>\n        <\/div>\n      <\/div>\n\n      <div id=\"tp-nri-slab-wrap\" style=\"margin-bottom:16px;\">\n        <label style=\"display:block; font-size:13px; font-weight:600; margin-bottom:6px; color:var(--tp-muted);\">NRI seller&#8217;s total taxable income (for surcharge)<\/label>\n        <select id=\"tp-nri-slab\" onchange=\"tpCalcNri()\" style=\"width:100%; box-sizing:border-box; padding:10px 12px; border:1px solid var(--tp-line); border-radius:8px; font-size:15px; background:#fff;\">\n          <option value=\"0\">Up to \u20b950 lakh \u2014 no surcharge<\/option>\n          <option value=\"10\">\u20b950 lakh \u2013 \u20b91 crore \u2014 10% surcharge<\/option>\n          <option value=\"15\">Above \u20b91 crore \u2014 15% surcharge<\/option>\n        <\/select>\n      <\/div>\n\n      <div id=\"tp-nri-stcg-note\" style=\"display:none; font-size:13px; color:var(--tp-muted); margin-bottom:16px; background:#f4efe6; padding:10px 12px; border-radius:8px;\">\n        Short-term gains are taxed at the NRI&#8217;s applicable slab rate (up to 30%) plus surcharge and cess. This calculator shows TDS at the maximum 30% slab \u2014 check the seller&#8217;s actual slab for a precise figure, or ask them for a Lower Deduction Certificate.\n      <\/div>\n\n      <div id=\"tp-result-nri\"><\/div>\n    <\/div>\n\n  <\/div>\n\n  <div style=\"padding:14px 26px; background:#f4efe6; border-top:1px solid var(--tp-line); font-size:12.5px; color:var(--tp-muted); line-height:1.5;\">\n    For informational use only \u2014 not tax advice. Rates reflect FY 2025-26 rules as of July 2026. Verify with a chartered accountant before filing. Forms 141\/132 apply for transactions dated 1 April 2026 onward; Forms 26QB\/16B apply before that.\n  <\/div>\n<\/div>\n\n<script>\n(function(){\n  function tpFmtINR(n){\n    n = Math.round(n);\n    var s = Math.abs(n).toString();\n    var last3 = s.substring(s.length-3);\n    var other = s.substring(0, s.length-3);\n    if(other !== '') last3 = ',' + last3;\n    var formatted = other.replace(\/\\B(?=(\\d{2})+(?!\\d))\/g, \",\") + last3;\n    return (n<0?'-':'') + '\u20b9' + formatted;\n  }\n\n  window.tpSetSeller = function(type){\n    var res = document.getElementById('tp-panel-resident');\n    var nri = document.getElementById('tp-panel-nri');\n    var tabRes = document.getElementById('tp-tab-res');\n    var tabNri = document.getElementById('tp-tab-nri');\n    if(type === 'resident'){\n      res.style.display = 'block'; nri.style.display = 'none';\n      tabRes.style.background = 'var(--tp-accent)'; tabRes.style.color = '#fff';\n      tabNri.style.background = 'transparent'; tabNri.style.color = 'var(--tp-ink)';\n      tpCalcResident();\n    } else {\n      res.style.display = 'none'; nri.style.display = 'block';\n      tabNri.style.background = 'var(--tp-accent)'; tabNri.style.color = '#fff';\n      tabRes.style.background = 'transparent'; tabRes.style.color = 'var(--tp-ink)';\n      tpCalcNri();\n    }\n  };\n\n  window.tpCalcResident = function(){\n    var sale = parseFloat(document.getElementById('tp-sale').value) || 0;\n    var stamp = parseFloat(document.getElementById('tp-stamp').value) || 0;\n    var panYes = document.getElementById('tp-pan').value === 'yes';\n    var dateVal = document.getElementById('tp-date').value;\n    var out = document.getElementById('tp-result-resident');\n\n    var base = Math.max(sale, stamp);\n    var threshold = 5000000;\n\n    if(base < threshold){\n      out.innerHTML = '<div style=\"background:#eef0ec; border-radius:10px; padding:16px 18px; font-size:14.5px;\">'\n        + '<strong style=\"color:var(--tp-accent-dark);\">No TDS applicable.<\/strong><br>The higher of sale consideration and stamp duty value ('+tpFmtINR(base)+') is below the \u20b950,00,000 threshold under Section 194-IA.'\n        + '<\/div>';\n      return;\n    }\n\n    var rate = panYes ? 0.01 : 0.20;\n    var tds = base * rate;\n    var net = sale - tds;\n\n    \/\/ Form + due date logic\n    var payDate = dateVal ? new Date(dateVal + 'T00:00:00') : new Date();\n    var cutoff = new Date('2026-04-01T00:00:00');\n    var useNewForm = payDate >= cutoff;\n    var formName = useNewForm ? 'Form 141 (Schedule B)' : 'Form 26QB';\n    var certName = useNewForm ? 'Form 132' : 'Form 16B';\n\n    var dueDate = new Date(payDate.getFullYear(), payDate.getMonth()+1, 0); \/\/ last day of pay month\n    dueDate.setDate(dueDate.getDate() + 30);\n    var dueDateStr = dueDate.toLocaleDateString('en-IN', {day:'numeric', month:'long', year:'numeric'});\n\n    var today = new Date();\n    var lateHtml = '';\n    if(today > dueDate){\n      var msDiff = today - dueDate;\n      var daysLate = Math.ceil(msDiff \/ (1000*60*60*24));\n      var lateFee = Math.min(daysLate * 200, tds);\n      lateHtml = '<div style=\"margin-top:12px; background:#fbeceb; border:1px solid #f0c9c6; border-radius:8px; padding:12px 14px; font-size:13.5px; color:#7a2e28;\">'\n        + '<strong>\u26a0 Due date has passed<\/strong> ('+daysLate+' days late). Estimated Section 234E late fee: <strong>'+tpFmtINR(lateFee)+'<\/strong> (\u20b9200\/day, capped at TDS amount). Interest under Section 201(1A) may also apply \u2014 consult a CA.'\n        + '<\/div>';\n    }\n\n    out.innerHTML =\n      '<div style=\"display:grid; grid-template-columns:1fr 1fr; gap:12px; margin-bottom:14px;\">'\n        + tpStatCard('TDS Base (higher of the two)', tpFmtINR(base))\n        + tpStatCard('TDS Rate', panYes ? '1%' : '20% (no PAN \u2014 Sec 206AA)')\n        + tpStatCard('TDS Amount to Deduct', tpFmtINR(tds), true)\n        + tpStatCard('Net Payable to Seller', tpFmtINR(net))\n      + '<\/div>'\n      + '<div style=\"background:#eef0ec; border-radius:10px; padding:14px 16px; font-size:14px; line-height:1.7;\">'\n        + 'File using <strong>'+formName+'<\/strong>, download <strong>'+certName+'<\/strong> from TRACES for the seller.<br>'\n        + 'Due date to file &amp; deposit: <strong>'+dueDateStr+'<\/strong> (30 days from end of payment month).'\n      + '<\/div>'\n      + lateHtml;\n  };\n\n  window.tpCalcNri = function(){\n    var sale = parseFloat(document.getElementById('tp-nri-sale').value) || 0;\n    var holding = document.getElementById('tp-nri-holding').value;\n    var surcharge = parseFloat(document.getElementById('tp-nri-slab').value) || 0;\n    var stcgNote = document.getElementById('tp-nri-stcg-note');\n    var slabWrap = document.getElementById('tp-nri-slab-wrap');\n    stcgNote.style.display = holding === 'stcg' ? 'block' : 'none';\n\n    var baseRate = holding === 'ltcg' ? 12.5 : 30; \/\/ STCG shown at max slab\n    var cess = 4;\n    var effectiveRate = baseRate * (1 + surcharge\/100) * (1 + cess\/100);\n    var tds = sale * (effectiveRate\/100);\n    var net = sale - tds;\n\n    var out = document.getElementById('tp-result-nri');\n    out.innerHTML =\n      '<div style=\"display:grid; grid-template-columns:1fr 1fr; gap:12px; margin-bottom:14px;\">'\n        + tpStatCard('Base Rate', baseRate+'%')\n        + tpStatCard('Effective Rate (with surcharge + cess)', effectiveRate.toFixed(2)+'%')\n        + tpStatCard('TDS Amount to Deduct', tpFmtINR(tds), true)\n        + tpStatCard('Net Payable to Seller', tpFmtINR(net))\n      + '<\/div>'\n      + '<div style=\"background:#eef0ec; border-radius:10px; padding:14px 16px; font-size:14px; line-height:1.7;\">'\n        + 'This is a <strong>Section 195<\/strong> transaction, not 194-IA:<br>'\n        + '\u2022 You need a <strong>TAN<\/strong>, not just a PAN<br>'\n        + '\u2022 File <strong>Form 27Q<\/strong> quarterly and deposit via <strong>Challan 281<\/strong><br>'\n        + '\u2022 Due date: <strong>7th of the month following deduction<\/strong> \u2014 not 30 days<br>'\n        + '\u2022 No \u20b950 lakh threshold \u2014 TDS applies from the first rupee<br>'\n        + '\u2022 If the seller holds a Lower Deduction Certificate (Form 13), apply that rate instead'\n      + '<\/div>';\n  };\n\n  function tpStatCard(label, value, accent){\n    return '<div style=\"background:'+(accent ? '#e4f0ec' : '#fff')+'; border:1px solid var(--tp-line); border-radius:10px; padding:12px 14px;\">'\n      + '<div style=\"font-size:12px; color:var(--tp-muted); margin-bottom:4px;\">'+label+'<\/div>'\n      + '<div style=\"font-size:18px; font-weight:700; color:'+(accent ? 'var(--tp-accent-dark)' : 'var(--tp-ink)')+';\">'+value+'<\/div>'\n      + '<\/div>';\n  }\n\n  \/\/ init\n  document.addEventListener('DOMContentLoaded', function(){\n    var dEl = document.getElementById('tp-date');\n    if(dEl && !dEl.value){\n      var t = new Date();\n      dEl.value = t.toISOString().substring(0,10);\n    }\n    tpCalcResident();\n  });\n  \/\/ fallback if DOMContentLoaded already fired (common when pasted mid-page)\n  if(document.readyState !== 'loading'){\n    var dEl2 = document.getElementById('tp-date');\n    if(dEl2 && !dEl2.value){ dEl2.value = new Date().toISOString().substring(0,10); }\n    tpCalcResident();\n  }\n})();\n<\/script>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"791\" height=\"1024\" src=\"https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/tds-on-property-calculator-screenshot-791x1024.jpg\" alt=\"TDS on property calculator showing Rs. 75,000 TDS on Rs. 75,00,000 sale value\" class=\"wp-image-1928\" srcset=\"https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/tds-on-property-calculator-screenshot-791x1024.jpg 791w, https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/tds-on-property-calculator-screenshot-232x300.jpg 232w, https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/tds-on-property-calculator-screenshot-768x994.jpg 768w, https:\/\/mybharatportal.com\/tools\/wp-content\/uploads\/2026\/10\/tds-on-property-calculator-screenshot.jpg 850w\" sizes=\"auto, (max-width: 791px) 100vw, 791px\" \/><\/figure>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-56949365665e09a1a972ad60df4fda78 wp-block-paragraph\"><strong>Updated: 24 July 2026 | Fact-checked against Income Tax Department, Tax2win, ClearTax, Taxguru, CA Club India<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" style=\"margin-top:20px;margin-bottom:20px\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-43d04d024c5a1cdd4f76dfa4572f85f9\" style=\"border-color:#4a8cd2;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#edf4ff;margin-top:20px;margin-bottom:20px;padding-right:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-ca7d1bc4 wp-block-group-is-layout-constrained\">\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-b117b252be2f39918fd85d77d0672ecf wp-block-paragraph\">Ramesh just bought a flat in Pune for \u20b965 lakh. He paid the full amount to the seller, registered the property, and went home happy. Three months later, he got a notice from the Income Tax Department. The reason? He forgot to deduct TDS before paying the seller. A quick check on a TDS on property calculator would have told him to deduct \u20b965,000 before paying.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-b7477f7929ff8a9dfe1d8595245bc065 wp-block-paragraph\">This happens more than you think. Thousands of property buyers in India every year land in trouble \u2014 not because they did anything dishonest, but because nobody told them about <strong>TDS on property purchase<\/strong>.<\/p>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-0c443e3ac5c8d4deba95f772e4280d2e wp-block-paragraph\">This guide will make sure that doesn&#8217;t happen to you.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-ddad62a0a5cbc10ff2d2a007f62f2968\" style=\"border-color:#48dd9b;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#e8fdf6;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-f2bb4551 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">What Exactly is TDS on Property?<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">TDS stands for <strong>Tax Deducted at Source<\/strong>. When you buy a property worth \u20b950 lakh or more, the government does not want to wait until the seller files their income tax return to collect tax. So it puts the responsibility on <em>you<\/em> \u2014 the buyer \u2014 to deduct a small percentage of the payment before handing it over to the seller.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">Think of yourself as a mini tax collector for just this one transaction.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">This rule comes from <strong>Section 194-IA of the Income Tax Act, 1961<\/strong> (and from April 1, 2026 onwards, the restructured equivalent under <strong>Section 393(1) of the Income Tax Act, 2025<\/strong>). The rate is simple: <strong>1% of the sale consideration or stamp duty value, whichever is higher<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The seller gets the remaining 99%. They can later claim credit for this TDS amount when they file their ITR, and if tax is excess, they get a refund.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-f516b3167ee5da721556d4c6fe32b8ac\" style=\"border-color:#e0df4d;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#fbfbef;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">Who Has to Deduct This TDS?<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>The buyer<\/strong> \u2014 always. Not the seller. Not the builder. Not the broker.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">If you are purchasing any immovable property (flat, plot, house, commercial space \u2014 anything except rural agricultural land) worth \u20b950 lakh or more from a <strong>resident Indian seller<\/strong>, you must deduct 1% TDS before making any payment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You don&#8217;t need a TAN (Tax Deduction Account Number) for this \u2014 for resident-seller purchases only. All you need is your PAN and the seller&#8217;s PAN. (NRI-seller purchases work differently \u2014 see the dedicated section further below.)<\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-10b71c3f96d1bcb142d8d896a5e580d1\" style=\"border-color:#ec9647;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#fff9f3;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">The \u20b950 Lakh Threshold \u2014 One Critical Update Many People Miss<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">Here&#8217;s where most buyers make a mistake. They look only at the sale agreement value. But the law says TDS applies on the <strong>higher of two values<\/strong>:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-6594fab6ad8cf39170aff36d062a1437\">The sale consideration (what you actually pay the seller)<\/li>\n\n\n\n<li class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-e2aa49411cfb44c531a9ce0bba88413d\">The <strong>stamp duty value<\/strong> of the property (also called circle rate \/ ready reckoner value)<\/li>\n<\/ol>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">This change was introduced in <strong>Budget 2022<\/strong> and is now firmly in place.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>Example:<\/strong> You buy a flat and agree to pay \u20b948 lakh to the seller. But the government&#8217;s circle rate for that area puts the property&#8217;s stamp duty value at \u20b955 lakh. Even though you&#8217;re paying only \u20b948 lakh, TDS still applies \u2014 and it applies on \u20b955 lakh (the higher value).<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">So the TDS deductible = 1% of \u20b955 lakh = <strong>\u20b955,000<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This catches a lot of buyers off guard, especially in cities where circle rates have been revised upward recently.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">The 1% TDS Calculation \u2014 Exactly How It Works<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">The formula is straightforward:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-c94bc0bc5166db0978ee156c596064d2 wp-block-paragraph\" style=\"background-color:#e0ffe6\"><strong>TDS = 1% \u00d7 (Sale Consideration OR Stamp Duty Value, whichever is higher)<\/strong><\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/blockquote>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-4eeeee77fc8ac36811177967bb2f3b29\" style=\"border-color:#f25e5e;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#ffefef;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">And here&#8217;s the most important thing to understand: <strong>TDS applies on the full sale value, not just the amount above \u20b950 lakh<\/strong>.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">Many buyers think: &#8220;My property is \u20b960 lakh, so TDS is 1% of \u20b910 lakh = \u20b910,000.&#8221; That is completely wrong.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>Correct calculation:<\/strong> TDS = 1% of \u20b960,00,000 = <strong>\u20b960,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The seller receives: \u20b960,00,000 \u2212 \u20b960,000 = \u20b959,40,000<\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Quick Reference Table \u2014 TDS on Property Values<\/h3>\n\n\n\n<figure style=\"margin-top:20px;margin-right:20px;margin-bottom:20px;margin-left:20px\" class=\"wp-block-table\"><table class=\"has-theme-palette-3-color has-text-color has-background has-link-color has-border-color has-fixed-layout\" style=\"background-color:#fdf3ff;border-color:#de6ceb;border-width:1px\"><thead><tr><th>Property Value<\/th><th>TDS Applicable?<\/th><th>TDS Amount<\/th><th>Net Amount to Seller<\/th><\/tr><\/thead><tbody><tr><td>\u20b945,00,000<\/td><td>\u274c No<\/td><td>\u20b90<\/td><td>\u20b945,00,000<\/td><\/tr><tr><td>\u20b950,00,000<\/td><td>\u2705 Yes<\/td><td>\u20b950,000<\/td><td>\u20b949,50,000<\/td><\/tr><tr><td>\u20b975,00,000<\/td><td>\u2705 Yes<\/td><td>\u20b975,000<\/td><td>\u20b974,25,000<\/td><\/tr><tr><td>\u20b91,00,00,000<\/td><td>\u2705 Yes<\/td><td>\u20b91,00,000<\/td><td>\u20b999,00,000<\/td><\/tr><tr><td>\u20b92,50,00,000<\/td><td>\u2705 Yes<\/td><td>\u20b92,50,000<\/td><td>\u20b92,47,50,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-50072cf87799e3c4a898ae4fe9a8e240 wp-block-paragraph\">TDS rate: 1% (no surcharge or cess added on resident-seller transactions \u2014 confirmed by Income Tax Department)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-32d3c5dc4d820ff4486d8de76729365d\" style=\"border-color:#ec7ccc;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#ffeff6;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">What If the Seller Doesn&#8217;t Have PAN?<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">Then your TDS rate jumps from 1% to <strong>20% under Section 206AA<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you pay \u20b960 lakh to a seller who hasn&#8217;t given you their PAN (or whose PAN is not Aadhaar-linked), you&#8217;d need to deduct \u20b912 lakh instead of \u20b960,000. That&#8217;s a massive difference. Always get the seller&#8217;s PAN before any payment is made. No exceptions.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-55203a0f2c1e7ec0f0a5b0bdeb91cfe2\" style=\"border-color:#55ded0;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#ebfffd;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">The Form Change You Need to Know About in 2026<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">This is the most critical update that most articles \u2014 including older versions of this page \u2014 get wrong or miss entirely.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>For property transactions where payment was made on or before March 31, 2026:<\/strong> Use the old <strong>Form 26QB<\/strong> and TDS certificate is <strong>Form 16B<\/strong> (downloaded from TRACES).<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>For property transactions where payment is made on or after April 1, 2026:<\/strong> The Income Tax Act, 2025 applies. Form 26QB has been replaced by <strong>Form 141 (Schedule B)<\/strong>. The TDS certificate is now <strong>Form 132<\/strong> (downloaded from TRACES), which replaces Form 16B.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The due date remains the same: <strong>30 days from the end of the month<\/strong> in which payment was made.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-96fec9af4031f797ba6ddabbb06a1c52\" style=\"border-color:var(--global-palette1);border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#f2f6ff;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">How to Pay TDS on Property \u2014 Step by Step (2026)<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">Let&#8217;s say you paid \u20b965 lakh to the seller on July 10, 2026. Here&#8217;s exactly what you need to do:<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>Step 1: Deduct before paying<\/strong> Pay the seller \u20b964,35,000. Retain \u20b965,000 (1% of \u20b965 lakh) to be deposited as TDS.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>Step 2: Go to the Income Tax e-filing portal<\/strong> Visit <a href=\"https:\/\/www.incometax.gov.in\/\" target=\"_blank\" rel=\"noopener\">incometax.gov.in<\/a>. Log in with your PAN.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>Step 3: File Form 141 (Schedule B)<\/strong> Under the Income Tax Act, 2025 section, select Form 141 and choose Schedule B (Transfer of Immovable Property). Enter buyer PAN, seller PAN, property details, sale consideration, stamp duty value, and amount of TDS.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>Step 4: Pay online<\/strong> Pay \u20b965,000 through net banking or UPI. The payment and filing happen in one step \u2014 Form 141 is a challan-cum-statement.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>Step 5: Due date<\/strong> Since payment was made on July 10, 2026, Form 141 must be filed and TDS deposited by <strong>July 31, 2026<\/strong> (30 days from end of July).<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>Step 6: Download Form 132<\/strong> After processing (usually 5\u20137 working days), download Form 132 from TRACES and give it to the seller. This is their proof of TDS credit, which they will use when filing their ITR.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-7086dc28788fe1e9e8de4e90348054be wp-block-paragraph\" style=\"background-color:#ceffe0\"><strong>Note:<\/strong> If you&#8217;re a buyer individual or HUF purchasing from a resident seller, you do not need a TAN. Your PAN is sufficient. This does <strong>not<\/strong> apply when buying from an NRI seller \u2014 see below.<\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-f7bce7a51c1bf5407acd3ee9abfbba07\" style=\"border-color:var(--global-palette13);border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#fff0f0;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">Joint Buyers \u2014 One Thing That Trips People Up<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">If two people are buying a property together \u2014 say husband and wife \u2014 each buyer must file a <strong>separate Form 141<\/strong>. Each buyer files for their proportionate share of the sale value and TDS.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">Example: Flat worth \u20b980 lakh, two joint buyers in equal 50-50 share.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ul style=\"background-color:#fbc0c0\" class=\"wp-block-list has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-e1e5b700d853fc49eb73313c3ef74d08\">\n<li>Buyer 1 files Form 141 for \u20b940 lakh value, TDS = \u20b940,000<\/li>\n\n\n\n<li>Buyer 2 files Form 141 for \u20b940 lakh value, TDS = \u20b940,000<\/li>\n\n\n\n<li>Total TDS deposited: \u20b980,000 (1% of \u20b980 lakh \u2014 correct)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Under the old Form 26QB system, 2 buyers + 2 sellers meant 4 separate forms. Under Form 141, it&#8217;s now one form per buyer regardless of number of sellers \u2014 a genuine simplification.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-2d1b3827f9faafcfd719fc0221758409\" style=\"border-color:#2db2d4;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#f5faff;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">What About Instalment Payments?<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">Under-construction properties are often paid in multiple instalments. TDS applies on <strong>each instalment separately<\/strong> \u2014 not just the final payment. Every time you pay an instalment that, when added to previous instalments, takes the total above \u20b950 lakh, you start deducting TDS.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most people handling under-construction flats just deduct 1% TDS from each instalment throughout the payment schedule to keep it clean.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Penalties for Not Paying TDS on Time<\/h2>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-a0de7d7d5c48543ccbc1723dd9dcb98e wp-block-paragraph\">This is where Ramesh from the beginning of this article got hurt. Here&#8217;s what happens if you don&#8217;t comply:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Late Filing Fee \u2014 Section 234E<\/h3>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-a270931d8d26f8e092ab9ad7a5005ce1 wp-block-paragraph\">\u20b9200 per day from the due date until the date you actually file Form 141. This fee is <strong>capped at the total TDS amount<\/strong> \u2014 so it can never exceed the TDS you owe. But on a \u20b965,000 TDS amount, at \u20b9200\/day, you can hit the cap in just 325 days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Interest on Late Deduction \u2014 Section 201(1A)<\/h3>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-fae7da4e1945958e65228a95b05e9c6d wp-block-paragraph\">If you delay deducting TDS from the seller: <strong>1% per month<\/strong> (or part of a month) from the date TDS was deductible to the date you actually deducted it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Interest on Late Deposit \u2014 Section 201(1A)<\/h3>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-8e1f0103d6bb363311cdfc7727934aff wp-block-paragraph\">After deducting TDS, if you delay depositing it with the government: <strong>1.5% per month<\/strong> from the date of deduction to the date of deposit.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Penalty \u2014 Section 271H<\/h3>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-e64233cc7abc9755ddbd748855c04673 wp-block-paragraph\">An additional penalty of <strong>\u20b910,000 to \u20b91,00,000<\/strong> can be imposed by the Assessing Officer for non-filing or incorrect filing. However, this penalty is waived if you file within 30 days of the due date, pay the TDS, and deposit the late fee and interest.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-ec28c07bdca5a3268f3c4a0668c3c8aa wp-block-paragraph\" style=\"background-color:#e9ffe5\"><strong>Real-world consequence:<\/strong> On a \u20b91 crore property, if TDS of \u20b91 lakh is delayed by 6 months, interest alone adds up to \u20b99,000 (1.5% \u00d7 6 months). Not a huge amount, but you&#8217;ll also be answering a tax notice, which is far more inconvenient.<\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What Happens to the Seller?<\/h2>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-bfa1caee1fbb065a33e63cafb2b3815f wp-block-paragraph\">The seller gets their 99% amount after TDS deduction. The TDS you deposit shows up in the seller&#8217;s <strong>AIS (Annual Information Statement)<\/strong> and <strong>Form 26AS<\/strong> automatically. When the seller files their ITR, they claim this TDS as a credit against their total tax liability. If their actual tax is less than what was deducted, the difference is refunded.<\/p>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-cc637bb6f0c1724d265cdb3ae99c911a wp-block-paragraph\">So the seller is not &#8220;losing&#8221; money \u2014 they&#8217;re just prepaying tax they would have to pay anyway.<\/p>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-0d2ca92e8c277c68062fbaf0a0eccc8b wp-block-paragraph\"><strong>Critical for the seller:<\/strong> They can only claim TDS credit after you file Form 141 and download Form 132. If you never file, the seller&#8217;s TDS credit doesn&#8217;t appear, and they end up paying full tax from their pocket. This is exactly why many sellers now insist on proof of TDS filing before handing over property documents.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-ad67077a6980858561bdda31ff6cba28\" style=\"border-color:#6cf080;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#f0fff6;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">When Does Section 194-IA NOT Apply?<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">TDS under this section is not required in these situations:<\/p>\n\n\n\n<ul style=\"background-color:#cbffd2\" class=\"wp-block-list has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-3574a858a828d6b5ab5017586b451ca6\">\n<li><strong>Property value below \u20b950 lakh<\/strong> (both sale consideration and stamp duty value are below \u20b950 lakh)<\/li>\n\n\n\n<li><strong>Rural agricultural land<\/strong> \u2014 explicitly exempt<\/li>\n\n\n\n<li><strong>Compulsory government acquisition<\/strong> \u2014 falls under Section 194LA instead<\/li>\n\n\n\n<li><strong>NRI sellers<\/strong> \u2014 completely different rules apply under Section 195 (see below)<\/li>\n<\/ul>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Buying Property from an NRI Seller \u2014 Different Rules Entirely<\/h2>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-fde6c1068ab59c15190b11e886c51beb wp-block-paragraph\">If the person selling you the property is an NRI (Non-Resident Indian), do not apply the 1% rule, and do not assume the &#8220;PAN is enough&#8221; guidance from earlier in this article applies here \u2014 it doesn&#8217;t. Section 194-IA does not apply to NRI sellers at all.<\/p>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-45e137d5381a231ce7a25dd260bbf4a8 wp-block-paragraph\">Instead, <strong>Section 195<\/strong> of the Income Tax Act applies, with a completely different rate structure, deposit mechanism, and deadline:<\/p>\n\n\n\n<figure style=\"margin-top:20px;margin-bottom:20px\" class=\"wp-block-table\"><table class=\"has-theme-palette-3-color has-text-color has-background has-link-color has-border-color has-theme-palette-13-border-color has-fixed-layout\" style=\"background-color:#fff0f0;border-width:1px\"><thead><tr><th>Gain Type<\/th><th>Holding Period<\/th><th>TDS Rate (FY 2025-26)<\/th><\/tr><\/thead><tbody><tr><td>Long-Term Capital Gain<\/td><td>More than 24 months<\/td><td>12.5% (no indexation) + surcharge + 4% cess<\/td><\/tr><tr><td>Short-Term Capital Gain<\/td><td>24 months or less<\/td><td>As per income slab, up to 30% + surcharge + cess<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-49731474524a0235d9e560101d592ae7 wp-block-paragraph\">Surcharge is what catches people off guard. On a straightforward LTCG sale with no surcharge slab triggered, the effective rate lands around <strong>14.95%<\/strong>. But once the NRI&#8217;s total income crosses \u20b950 lakh, surcharge pushes the effective rate to roughly <strong>20.8%<\/strong>, and above \u20b91 crore it climbs to nearly <strong>23.92%<\/strong>. On a \u20b91.5 crore sale, that&#8217;s the difference between withholding ~\u20b922.4 lakh and ~\u20b935.9 lakh \u2014 plan the seller&#8217;s payout accordingly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Three things that work completely differently from a resident-seller purchase:<\/strong><\/p>\n\n\n\n<ol style=\"border-color:#e37dd4;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#ffeffd\" class=\"wp-block-list has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-74c6bdce90c9e232a9080f5f0fc8b5e3\">\n<li class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-528a2a4971087da5d816ac29c9af9f32\"><strong>You need a TAN, not just a PAN.<\/strong> This is the single most common mistake buyers make when purchasing from an NRI. Apply for a TAN via Form 49B at NSDL\/UTIITSL <em>before<\/em> the transaction \u2014 you cannot deposit this TDS on your PAN alone the way you can under Section 194-IA.<\/li>\n\n\n\n<li><strong>Filing is different.<\/strong> Deposit TDS using <strong>Challan 281<\/strong>, and file your TDS return on <strong>Form 27Q<\/strong> quarterly \u2014 not Form 141\/26QB, and not a single post-payment filing.<\/li>\n\n\n\n<li><strong>The deadline is shorter.<\/strong> TDS must be deposited by the <strong>7th of the month following deduction<\/strong> \u2014 not the 30-day window that applies to resident-seller property purchases.<\/li>\n<\/ol>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-e0c7df7f93436bc785941a1e84cc8a56 wp-block-paragraph\">There is also <strong>no \u20b950 lakh threshold<\/strong> for NRI sellers \u2014 TDS applies from rupee one.<\/p>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-f6716260f5163d4c7ff0e340509e60d4 wp-block-paragraph\">By default, TDS is deducted on the <strong>entire sale value<\/strong>, not just the profit \u2014 which is why many NRI sellers apply for a <strong>Lower Deduction Certificate<\/strong> (via Form 13, under Section 197) from the Income Tax Department to reduce TDS to their actual tax liability. If your NRI seller has one, apply the rate specified on that certificate instead of the standard rate.<\/p>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-34783284ad7a372b59003b13b6688a5c wp-block-paragraph\">If you&#8217;re buying from an NRI and try to apply 1% TDS using your PAN, you&#8217;re non-compliant on multiple fronts at once. Always verify the seller&#8217;s residential status \u2014 and get your TAN sorted \u2014 before signing the agreement.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-0d049955427d2d3ac85eb04d58d1099d\" style=\"border-color:#96c0fa;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#f3f0ff;margin-top:20px;margin-bottom:20px;padding-top:20px;padding-right:20px;padding-bottom:20px;padding-left:20px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-2ccc6f79 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">5 Common Mistakes Buyers Make (And How to Avoid Them)<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mistake 1: Paying the full amount and then trying to deduct TDS later<\/strong> TDS must be deducted before paying the seller. If you&#8217;ve already paid, you are in technical default. Contact a CA immediately.<\/li>\n\n\n\n<li><strong>Mistake 2: Ignoring stamp duty value<\/strong> Always check the circle rate\/stamp duty value of the property before calculating TDS. If stamp duty value is higher, your TDS base is higher.<\/li>\n\n\n\n<li><strong>Mistake 3: Missing parking, club membership, PLC charges in TDS base<\/strong> These charges are part of the total consideration. They must be included in the TDS calculation base. Not including them is a common error flagged in AIS mismatches.<\/li>\n\n\n\n<li><strong>Mistake 4: Filing Form 26QB for transactions after April 1, 2026<\/strong> For payments made on or after April 1, 2026, use Form 141 (Schedule B). Using the old Form 26QB will cause processing errors.<\/li>\n\n\n\n<li><strong>Mistake 5: Using PAN instead of TAN for an NRI-seller purchase<\/strong> The PAN-only rule applies only to resident-seller transactions. If your seller is an NRI, you need a TAN, must file Form 27Q, and deposit by the 7th of the following month \u2014 not the 30-day window that applies elsewhere in this guide.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Quick Summary \u2014 Everything in One Place<\/h2>\n\n\n\n<figure style=\"margin-top:20px;margin-right:20px;margin-bottom:20px;margin-left:20px\" class=\"wp-block-table\"><table class=\"has-theme-palette-3-color has-text-color has-background has-link-color has-border-color has-fixed-layout\" style=\"background-color:#fef2fe;border-color:#e466e2;border-width:1px\"><thead><tr><th>What<\/th><th>Resident Seller (194-IA)<\/th><th>NRI Seller (Section 195)<\/th><\/tr><\/thead><tbody><tr><td>Who deducts TDS?<\/td><td>Buyer<\/td><td>Buyer<\/td><\/tr><tr><td>TDS rate<\/td><td>1%<\/td><td>12.5%+ (LTCG) or slab rate (STCG), plus surcharge &amp; cess<\/td><\/tr><tr><td>TDS base<\/td><td>Higher of sale value or stamp duty value<\/td><td>Entire sale value (unless Lower Deduction Certificate obtained)<\/td><\/tr><tr><td>Minimum threshold<\/td><td>\u20b950 lakh<\/td><td>None \u2014 applies from \u20b91<\/td><\/tr><tr><td>TAN required?<\/td><td>No \u2014 PAN is enough<\/td><td><strong>Yes<\/strong><\/td><\/tr><tr><td>Form to file (from April 1, 2026)<\/td><td>Form 141 (Schedule B)<\/td><td>Form 27Q (quarterly)<\/td><\/tr><tr><td>Deposit challan<\/td><td>Built into Form 141<\/td><td>Challan 281<\/td><\/tr><tr><td>Due date<\/td><td>30 days from end of month of payment<\/td><td>7th of the following month<\/td><\/tr><tr><td>TDS certificate<\/td><td>Form 132 (from TRACES)<\/td><td>Form 16A<\/td><\/tr><tr><td>Late filing penalty<\/td><td>\u20b9200\/day (Section 234E), capped at TDS amount<\/td><td>Same provision applies<\/td><\/tr><tr><td>No PAN of seller<\/td><td>TDS at 20% under Section 206AA<\/td><td>N\/A \u2014 TAN-based filing<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Use the Free TDS on Property Calculator<\/h2>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-736d4493cf378df71b4a9a23db4e1370 wp-block-paragraph\">Instead of doing this manually, use the <strong>MY Bharat TDS on Property Calculator<\/strong> above to instantly get:<\/p>\n\n\n\n<ul style=\"border-color:#de4975;border-width:1px;border-top-left-radius:50px;border-top-right-radius:50px;border-bottom-left-radius:50px;border-bottom-right-radius:50px;background-color:#fff5f5\" class=\"wp-block-list has-border-color has-theme-palette-3-color has-text-color has-background has-link-color wp-elements-a9c931fa0a0ee60ff5033c11c6e765da\">\n<li>TDS amount based on your property value and stamp duty value<\/li>\n\n\n\n<li>Form 141 due date based on your payment date<\/li>\n\n\n\n<li>Late filing interest and penalty estimation if you&#8217;ve already missed the deadline<\/li>\n<\/ul>\n\n\n\n<p class=\"has-theme-palette-3-color has-text-color has-link-color wp-elements-4f7139b860c900009532637a55e29060 wp-block-paragraph\">Enter your numbers at the top of this page and get your answer in seconds.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n<style>.kt-accordion-id673_0e50ef-c6 .kt-accordion-inner-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:10px;}.kt-accordion-id673_0e50ef-c6 .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid transparent;background:#ffffff;padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-right:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);padding-left:var(--global-kb-spacing-sm, 1.5rem);}.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header{border-top:1px solid #f2f2f2;border-right:1px solid #f2f2f2;border-bottom:1px solid #f2f2f2;border-left:1px solid #f2f2f2;border-top-left-radius:6px;border-top-right-radius:6px;border-bottom-right-radius:6px;border-bottom-left-radius:6px;background:#f2f2f2;color:#555555;padding-top:13px;padding-right:15px;padding-bottom:13px;padding-left:15px;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap .kt-blocks-accordion-icon-trigger:before{background:#555555;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-icon-trigger{background:#555555;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-icon-trigger:before{background:#f2f2f2;}.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header:hover, \n\t\t\t\tbody:not(.hide-focus-outline) .kt-accordion-id673_0e50ef-c6 .kt-blocks-accordion-header:focus-visible{color:#444444;background:#eeeeee;border-top:1px solid #878787;border-right:1px solid #878787;border-bottom:1px solid #878787;border-left:1px solid #878787;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger:before, body:not(.hide-focus-outline) .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle ) .kt-blocks-accordion--visible .kt-blocks-accordion-icon-trigger:after, body:not(.hide-focus-outline) .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle ) .kt-blocks-accordion-header:focus-visible .kt-blocks-accordion-icon-trigger:before{background:#444444;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger, body:not(.hide-focus-outline) .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible .kt-blocks-accordion-icon-trigger{background:#444444;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger:before, body:not(.hide-focus-outline) .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible .kt-blocks-accordion-icon-trigger:after, body:not(.hide-focus-outline) .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible .kt-blocks-accordion-icon-trigger:before{background:#eeeeee;}.kt-accordion-id673_0e50ef-c6 .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{color:#ffffff;background:#BE530B;border-top:1px solid #BE530B;border-right:1px solid #BE530B;border-bottom:1px solid #BE530B;border-left:1px solid #BE530B;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:before{background:#ffffff;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger{background:#ffffff;}.kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id673_0e50ef-c6:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:before{background:#BE530B;}@media all and (max-width: 1024px){.kt-accordion-id673_0e50ef-c6 .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid transparent;}}@media all and (max-width: 1024px){.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header{border-top:1px solid #f2f2f2;border-right:1px solid #f2f2f2;border-bottom:1px solid #f2f2f2;border-left:1px solid #f2f2f2;}}@media all and (max-width: 1024px){.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header:hover, \n\t\t\t\tbody:not(.hide-focus-outline) .kt-accordion-id673_0e50ef-c6 .kt-blocks-accordion-header:focus-visible{border-top:1px solid #878787;border-right:1px solid #878787;border-bottom:1px solid #878787;border-left:1px solid #878787;}}@media all and (max-width: 1024px){.kt-accordion-id673_0e50ef-c6 .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{border-top:1px solid #BE530B;border-right:1px solid #BE530B;border-bottom:1px solid #BE530B;border-left:1px solid #BE530B;}}@media all and (max-width: 767px){.kt-accordion-id673_0e50ef-c6 .kt-accordion-inner-wrap{display:block;}.kt-accordion-id673_0e50ef-c6 .kt-accordion-inner-wrap .kt-accordion-pane:not(:first-child){margin-top:10px;}.kt-accordion-id673_0e50ef-c6 .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid transparent;}.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header{border-top:1px solid #f2f2f2;border-right:1px solid #f2f2f2;border-bottom:1px solid #f2f2f2;border-left:1px solid #f2f2f2;}.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header:hover, \n\t\t\t\tbody:not(.hide-focus-outline) .kt-accordion-id673_0e50ef-c6 .kt-blocks-accordion-header:focus-visible{border-top:1px solid #878787;border-right:1px solid #878787;border-bottom:1px solid #878787;border-left:1px solid #878787;}.kt-accordion-id673_0e50ef-c6 .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id673_0e50ef-c6 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{border-top:1px solid #BE530B;border-right:1px solid #BE530B;border-bottom:1px solid #BE530B;border-left:1px solid #BE530B;}}<\/style>\n<div class=\"wp-block-kadence-accordion alignnone\"><div class=\"kt-accordion-wrap kt-accordion-id673_0e50ef-c6 kt-accordion-has-7-panes kt-active-pane-0 kt-accordion-block kt-pane-header-alignment-left kt-accodion-icon-style-basic kt-accodion-icon-side-right\" style=\"max-width:none\"><div class=\"kt-accordion-inner-wrap\" data-allow-multiple-open=\"false\" data-start-open=\"0\">\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-1 kt-pane673_544d05-73\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Q: I paid the seller \u20b970 lakh yesterday but forgot to deduct TDS. What do I do now?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">You are technically in default under Section 194-IA. Deduct the TDS from the next instalment if any, or recover it from the seller. File Form 141 immediately, pay the TDS amount + interest at 1% per month for the delay, and the late fee of \u20b9200\/day. Consult a CA to ensure the filing is done correctly.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-2 kt-pane673_e27e36-84\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Q: The sale agreement says \u20b952 lakh but the stamp duty value is \u20b948 lakh. Do I deduct TDS?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">Yes. Since the sale consideration (\u20b952 lakh) exceeds \u20b950 lakh, TDS applies. Calculate 1% on \u20b952 lakh = \u20b952,000.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-3 kt-pane673_d7f091-50\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Q: What if the seller refuses to let me deduct TDS?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">That is irrelevant legally. The obligation to deduct TDS is yours as the buyer. If you fail to deduct, you \u2014 not the seller \u2014 face the penalty. Seller&#8217;s consent is not required. Make it clear before you agree to any price.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-4 kt-pane673_e70369-e9\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Q: The builder says they&#8217;ll handle TDS filing. Should I trust that?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">Do not delegate this. TDS filing is the buyer&#8217;s legal responsibility. Even if the builder &#8220;helps&#8221;, verify on TRACES that Form 141 has been filed and that Form 132 (TDS certificate) reflects your PAN correctly. Builders sometimes get this wrong.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-5 kt-pane673_92b2ef-61\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Q: I&#8217;m buying a property jointly with my mother. Do we file one form or two?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">Two separate forms. Each buyer files Form 141 for their respective share of the consideration and TDS amount.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-6 kt-pane673_2450c6-b4\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Q: Do I deduct TDS on GST charged by the builder?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">No. TDS under Section 194-IA applies on the base sale consideration, not on the GST component. GST is a separate tax \u2014 do not include it in the TDS calculation base.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-7 kt-pane673_8d12ae-9d\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Q: My seller is an NRI. Can I still just use my PAN like a normal property purchase?<\/strong> <\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">No \u2014 this is one of the most common and costly mistakes buyers make. Purchases from NRI sellers fall under Section 195, not 194-IA. You need a TAN, must file quarterly Form 27Q returns, and deposit TDS by the 7th of the following month (not 30 days). Get this set up before you sign the agreement, not after.<\/p>\n<\/div><\/div><\/div>\n<\/div><\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" style=\"margin-top:20px;margin-bottom:20px\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">This article is for general informational purposes and reflects rules applicable as of 24 July 2026. It has been fact-checked against the Income Tax Department (incometax.gov.in), Tax2win, ClearTax, Taxguru, and CA Club India. Tax laws change \u2014 consult a chartered accountant or registered tax advisor for your specific transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For more guides you can visit our main page <a href=\"https:\/\/mybharatportal.com\/\" data-type=\"link\" data-id=\"https:\/\/mybharatportal.com\/\">mybharatportal.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TDS on Property Purchase in India 2026 \u2014 Complete Guide (Section 194-IA) Section 194-IA &amp; 195 \u00b7 FY 2025-26 TDS on Property Purchase Calculator Know your exact TDS, filing form, and due date before you pay the seller. Resident Seller NRI Seller Sale Consideration (\u20b9) Stamp Duty \/ Circle Rate Value (\u20b9) Date of Payment&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"hide","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"class_list":["post-673","page","type-page","status-publish","hentry"],"acf":[],"taxonomy_info":[],"featured_image_src_large":false,"author_info":{"display_name":"Sufyan","author_link":"https:\/\/mybharatportal.com\/tools\/author\/sufyan\/"},"comment_info":0,"_links":{"self":[{"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/pages\/673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/comments?post=673"}],"version-history":[{"count":4,"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/pages\/673\/revisions"}],"predecessor-version":[{"id":1945,"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/pages\/673\/revisions\/1945"}],"wp:attachment":[{"href":"https:\/\/mybharatportal.com\/tools\/wp-json\/wp\/v2\/media?parent=673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}