What is TDS on property?
TDS on property is the income tax the buyer of a property worth ₹50 lakh or more deducts and deposits: 1% of the price or the stamp duty value, whichever is higher, under s.393(1) of the Income-tax Act 2025 (old s.194-IA).
Also called TDS on sale of property, section 194-IA, section 393(1).
For payments credited or made from 1 April 2026, TDS on immovable property other than agricultural land is under section 393(1) of the Income-tax Act 2025, Table serial number 3(i). Before that date it was section 194-IA of the Income-tax Act 1961.
| Item | Rule |
|---|---|
| Rate | 1% of the consideration or the stamp duty value, whichever is higher |
| Threshold | Either is ₹50 lakh or more (Note 3 to the table, as corrected by the Finance Act 2026) |
| GST | Left out where shown separately (CBDT Circular 23/2017); confirm with your CA |
| When | On each payment or credit, whichever is earlier |
| Without PAN | 20% (s.397(2)(b)(i)) |
| TAN | Not needed (s.397(1)(c)(i)) |
| Form | Form No. 141 (formerly 26QB), within 30 days from the end of the month of deduction |
| Certificate | Form No. 132 (formerly 16B), to the seller |
The buyer deducts it, so the builder usually receives 99% of each instalment and claims the deducted amount as a tax credit. See Form 26QB for how the credit is checked.
Sources, read on 9 Nov 2026: s.393, s.397, rule 218, rule 219, rule 215 and Circular 23/2017 on the Income Tax Department’s site.