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TDS on Property Transactions – A Quick Compliance Snapshot

Buying property worth ₹50 lakhs or more? You're under the lens of Section 194IA of the Income Tax Act, 1961.

Key Highlights:
Who deducts TDS? ⇒ Buyer of the property
When is TDS deducted? ⇒ If sale consideration is ₹50 lakhs or more
What type? ⇒ Immovable property (excluding agricultural land)
TDS Rate? ⇒ 1% of the total sale consideration

No TAN needed, PAN will do

Deposit Timeline:
Within 30 days of the month-end
Use Form 26QB (challan-cum-statement)

TDS Certificate:
Buyer must issue Form 16B to seller

 

Non-compliance? Interest and penalty may apply—don’t let this slip.

Example: Buying property for ₹70 lakhs? Deduct ₹70,000 as TDS and deposit via Form 26QB.