Question
How does TDS on property purchase (Section 194-IA) work?
Answer
Bottom line: The buyer deducts 1% TDS on a property of ₹50 lakh or more and deposits it in Form 26QB.
1. The rule
1% on the higher of the sale consideration or the stamp-duty value, where either is ₹50 lakh or more.
2. Form 26QB
File and deposit within 30 days from the end of the month of deduction, then give the seller Form 16B.
3. Scope
No TAN is needed, and it does not apply to agricultural land.
Compute it with our TDS on Property Sale Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.