TDS on Property Sale Calculator (FY 2026-27)
Buying property? Compute the exact TDS you must deduct – 1% for a resident seller (Form 141, earlier Form 26QB) or 12.5%-plus for an NRI seller under Section 195, where most buyers go wrong. Verified by a practising CA.
| Particular | Resident seller | NRI seller |
|---|---|---|
| Provision | Sec 393(1), Income-tax Act 2025 (earlier Sec 194-IA) | Sec 195 framework (payments to non-residents) |
| Rate | 1% of the higher of consideration or stamp duty value | LTCG: 12.5% + surcharge + 4% cess (13% to 14.95% effective); STCG: 30% + surcharge + cess |
| Threshold | No TDS only if consideration AND stamp duty value are both below Rs 50 lakh | None – applies on any amount |
| TDS base | Full consideration / SDV (higher) | Full sale consideration, unless a Sec 197 lower-deduction certificate permits deduction on gains |
| Form | Form 141 (Schedule B) within 30 days of month-end – replaced Form 26QB from 1 April 2026; no TAN needed | Challan deposit + quarterly TDS statement (Form 27Q under the earlier regime); TAN historically required – verify current portal process under the 2025 Act |
| Certificate to seller | Form 16B | Form 16A |
When you buy any immovable property (other than rural agricultural land) from a resident, deduct 1% of the higher of the sale consideration or the stamp duty value at the time of credit or payment, whichever is earlier. The exemption applies only when both values are below Rs 50 lakh – and since the 2024 amendment, the threshold is tested on the aggregate consideration even with multiple buyers or sellers, so splitting payments does not escape TDS. “Consideration” includes charges incidental to transfer – parking, club membership, maintenance deposits. Deposit the TDS with Form 141 (Schedule B) – the Income-tax Act 2025 successor to Form 26QB – within 30 days from the end of the month of deduction, using your PAN (no TAN needed), and issue Form 16B to the seller within 15 days. If the seller has no valid PAN, deduct at 20%. Delay costs Rs 200 per day (capped at the TDS amount) plus interest at 1% per month for non-deduction and 1.5% per month for deducted-but-not-deposited.
If the seller is a non-resident, Section 194-IA/393(1) does not apply at all – the buyer must deduct under the Section 195 framework, on the full sale consideration, at the capital-gains rates: for property held over 24 months, 12.5% LTCG (for transfers on or after 23 July 2024) plus surcharge (10% above Rs 50 lakh, 15% above Rs 1 crore – capped at 15% for LTCG) plus 4% cess – an effective 13% to 14.95%. For shorter holding, STCG applies at slab rates – in practice TDS at 30%-plus. There is no Rs 50 lakh threshold: even a Rs 25 lakh flat bought from an NRI attracts full TDS. The practical fix every NRI seller should know: apply to the jurisdictional AO in Form 13 for a lower/nil deduction certificate u/s 197, so TDS is computed on the actual capital gain instead of the gross price – otherwise a large refund stays blocked until the return is processed. The buyer should obtain the certificate copy before deducting at the lower rate, deposit by the 7th of the following month and report in the quarterly NRI TDS statement.
TDS on Property Sale – Frequently Asked Questions
When is TDS deducted on the sale of property in India?
When the seller is a resident, the buyer deducts 1% under Section 194-IA if the sale consideration or the stamp duty value is ₹50,00,000 or more — TDS is charged on the higher of the two. The tax is deposited using Form 141 (earlier Form 26QB) within 30 days from the end of the month of deduction, and Form 16B is issued to the seller within 15 days thereafter.
What if the seller does not have a PAN?
If a resident seller does not furnish a PAN, TDS under Section 194-IA is deducted at 20% instead of 1%, as required by Section 206AA. Always collect the seller’s PAN before making payment to avoid this higher deduction.
How is TDS different when the seller is an NRI?
Sale by a non-resident falls under Section 195, not 194-IA, and there is no ₹50 lakh threshold — TDS applies from the first rupee. Long-term gains (property held over 24 months) attract 12.5% plus applicable surcharge and 4% Health and Education cess; short-term gains (24 months or less) are deducted at 30% plus surcharge and cess. The buyer needs a TAN and files Form 27Q, not Form 141. Surcharge on long-term gains is capped at 15%.
Can the NRI seller reduce TDS on the full sale value?
Yes. Without a certificate, TDS for an NRI applies on the entire sale consideration, which usually exceeds the actual tax. The NRI seller can apply to the Assessing Officer for a lower or nil deduction certificate under Section 197, so that TDS is computed only on the actual capital gain. Enter that certificate rate in the calculator to see the reduced deduction.
What are the penalties for late deposit or filing?
Interest under Section 201(1A) applies at 1% per month for late deduction and 1.5% per month for late deposit after deduction. A late filing fee under Section 234E of ₹200 per day also applies for delayed filing of the TDS statement, capped at the amount of TDS. This calculator estimates the ₹200-per-day late fee based on the delay you enter.
This calculator gives an indicative estimate for general guidance and is not tax advice. Actual TDS depends on the facts of the transaction and the seller’s residential status; please confirm the position with your Chartered Accountant.