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TDS on Property Purchase Calculator (Section 194-IA)

Buying a property worth ₹50 lakh or more? You must deduct 1% TDS from the payment to the seller and deposit it with the income tax department. Work out the exact amount, what to pay the seller, and your Form 26QB deadline.

Rules last reviewed September 2026Official source: incometax.gov.in

₹

Include parking, club membership, electricity/water connection and similar charges.

₹

If this is higher than the sale price, TDS is calculated on it instead.

For joint buyers, each buyer deducts TDS on their own share.

TDS you must deduct

₹75,000

1% of your share of ₹75,00,000.

Value TDS is calculated on₹75,00,000
TDS rate1%
Pay to the seller₹74,25,000
Deposit with the government₹75,000
Form 26QB due by30 October 2026

File Form 26QB and pay the TDS online through the income tax e-filing portal. You don't need a TAN. Then download Form 16B and give it to the seller.

TDS on property at common prices

Property valueTDS (1%)Paid to seller
₹45,00,000Not applicable₹45,00,000
₹50,00,000₹50,000₹49,50,000
₹75,00,000₹75,000₹74,25,000
₹1,00,00,000₹1,00,000₹99,00,000
₹2,00,00,000₹2,00,000₹1,98,00,000

How to pay TDS on property: step by step

  1. Deduct 1% (20% if the seller's PAN is inoperative) from the payment to the seller.
  2. Log in to the income tax e-filing portal and choose e-Pay Tax → Form 26QB (TDS on sale of property).
  3. Enter buyer, seller and property details, the total value, and the amount paid.
  4. Pay the TDS online; the challan and statement are filed together.
  5. After processing, download Form 16B from TRACES and give it to the seller.

What counts as the sale consideration

The full amount paid for the property, including charges incidental to the transfer such as car parking, club membership, and electricity or water connection fees. If the stamp duty (circle rate) value is higher than the agreed price, TDS is calculated on the stamp duty value.

TDS is not an extra cost

TDS is part of the price, not on top of it: you pay 99% to the seller and 1% to the government on the seller's behalf. The seller claims it as a credit against their income tax. Your extra costs as a buyer are stamp duty, registration and, for under-construction homes, GST.

Frequently asked questions

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