What is TDS on property purchase under Section 194-IA?
When you buy immovable property (other than agricultural land) worth ₹50 lakh or more, you must deduct 1% TDS on the sale consideration under Section 194-IA, deposit it using Form 26QB within 30 days of the month-end, and give the seller a Form 16B certificate. The 1% is on the full amount, not just the excess over ₹50 lakh.
1How it works
The buyer (not the seller) deducts 1% of the total sale consideration and deposits it via Form 26QB. No TAN is needed — your PAN suffices. If the seller has no PAN, TDS is 20%.
2Deadlines and certificate
Deposit the TDS within 30 days from the end of the month of payment/credit. Then download Form 16B from TRACES and hand it to the seller. Late deposit attracts interest and a Section 234E fee.
Frequently asked questions
Is TDS on property 1% of the whole amount or only above ₹50 lakh?
It's 1% of the entire sale consideration once the value is ₹50 lakh or more — not just the portion above ₹50 lakh.
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General information for AY 2026-27, not professional advice. Laws change with each Finance Act, notification or amendment and depend on your specific facts — verify the current position with a licensed CA or advocate before acting.