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TDS on property purchase calculator (old 194-IA, now section 393)
A buyer paying ₹50 lakh or more for property other than agricultural land deducts 1% TDS and deposits it with the Income Tax Department. If the stamp duty value is higher than the price, the 1% is worked out on that value. If the seller has no PAN, the rate is 20%.
From 1 April 2026 the rule sits in section 393(1) of the Income-tax Act 2025, filed on Form 141. Payments before that date fall under the old section 194-IA and Form 26QB.
- Pay the seller
- ₹84,10,000
- Section
- Section 393(1), Table serial no. 3(i)
- File on
- Form 141, Schedule B
- Deposit by
- 30 December 2026
The stamp duty value is higher than the price, so TDS is on ₹90,00,000.
How to use the TDS on property calculator
- Enter the property price, and the stamp duty value if you know it.
- Choose whether the price is paid at once or in instalments; for an instalment, enter its amount and date.
- Say whether the seller has given a valid PAN.
- Read the TDS to deduct and the date by which to deposit it on Form 141.
- Deposit the TDS on the income-tax portal, then download Form 132 and give it to the seller.
Old and new references: 194-IA and section 393
The Income-tax Act 2025 replaced the 1961 Act from 1 April 2026. The rule itself did not change; its section numbers and forms did. Use the date of payment or credit, whichever is earlier, to pick the column.
| What | Before 1 April 2026 | From 1 April 2026 |
|---|---|---|
| Law | Income-tax Act 1961 | Income-tax Act 2025 |
| TDS on property | Section 194-IA | Section 393(1), Table serial no. 3(i) |
| Rate and threshold | 1% at ₹50 lakh or more | 1% at ₹50 lakh or more |
| No PAN (20%) | Section 206AA | Section 397(2)(b)(i) |
| Deposit and statement | Form 26QB (challan-cum-statement) | Form 141, Schedule B (challan-cum-statement) |
| Certificate to seller | Form 16B | Form 132 |
| Interest on delay | Section 201(1A) | Section 398(3) |
| Late filing fee | Section 234E | Section 427 |
| TAN needed? | No | No |
Worked example: an ₹85 lakh flat with a ₹90 lakh stamp duty value
Paid on 15 November 2026 to a resident seller with a PAN.
| Case | Working | TDS |
|---|---|---|
| Paid all at once | 1% of the higher of ₹85 lakh and ₹90 lakh | ₹90,000 |
| One instalment of ₹12,75,000 | 1% of the amount paid | ₹12,750 |
| Seller has no PAN | 20% of ₹90 lakh | ₹18,00,000 |
| A ₹48 lakh flat, ₹48 lakh value | Below ₹50 lakh | No TDS |
On the lump sum the buyer pays the seller ₹84,10,000 (₹85 lakh less ₹90,000) and deposits ₹90,000 on Form 141 by 30 December 2026.
How TDS on property is calculated
TDS = 1% × the higher of the price and the stamp duty value
- Threshold: TDS applies when the price or the stamp duty value is ₹50 lakh or more, counting all buyers and all sellers of the property together.
- What counts as price: everything paid to the seller for the property, including parking, club membership, electricity or water connection, maintenance and advance fees.
- GST: left out where the agreement shows it separately (CBDT Circular No. 23/2017). No official guidance covers interest charged for late payment; agree it with your CA.
- Instalments: 1% of each payment, deducted when it is paid or credited, whichever comes first. When the stamp duty value is above the price, the Form 141 portal brings the value in at the last instalment; check the figure it proposes then.
- No PAN: 20% instead of 1%.
- Deposit: within 30 days from the end of the month in which TDS was deducted, on Form 141 with the buyer’s and seller’s PANs. No TAN is needed. Within 15 days after that, the buyer downloads the TDS certificate (Form 132) from the income-tax portal and gives it to the seller.
How we round
TDS is rounded to the nearest rupee, which is what the Form 141 portal does. Section 516 of the 2025 Act (section 288B earlier) rounds amounts payable to the nearest ₹10; no official note reconciles the two, so expect the portal’s figure.
Not covered here
Agricultural land, compulsory acquisition and joint development agreements have their own rules, and a non-resident seller’s TDS is at the rates in force on capital gains under section 393(2), not 1%.
Questions people ask
Which section covers TDS on property after 1 April 2026?
Section 393(1) of the Income-tax Act 2025, Table serial no. 3(i), replaced section 194-IA of the 1961 Act for payments from 1 April 2026. The rate (1%), the ₹50 lakh threshold and the stamp duty value rule are unchanged. Payments made before 1 April 2026 stay under section 194-IA.
Which form replaced Form 26QB?
Form 141 (Schedule B) is the challan-cum-statement for property TDS from 1 April 2026. It merged Forms 26QB, 26QC, 26QD and 26QE. The seller’s TDS certificate, earlier Form 16B, is Form 132: the buyer downloads it from the income-tax portal and gives it to the seller (rule 215(1)).
Is TDS due when the price is exactly ₹50 lakh?
Yes. Note 3 to the section 393(1) Table taxes a price or stamp duty value "equal to or greater than fifty lakh rupees". It first named serial 3(iii) by mistake; the Finance Act 2026 corrected it to serial 3(i), the property row, from 1 April 2026. The old section 194-IA also taxed exactly ₹50 lakh.
Is TDS on property deducted on the GST?
Not where the agreement shows GST separately: CBDT Circular No. 23/2017 says TDS is then worked out on the amount without GST, and section 536(2)(j) of the 2025 Act keeps that circular in force. There is no CBDT clarification written for property TDS, so confirm with your CA. If GST is not shown separately, deduct on the whole amount.
Do joint buyers each have their own ₹50 lakh threshold?
No. Note 1 to section 393(1) adds up what all buyers pay all sellers, so the threshold is tested on the whole property. Each buyer then deducts TDS on their own share of each payment and files their own Form 141.
Is TDS deducted on each instalment of an under-construction flat?
Yes. If the property is worth ₹50 lakh or more, the buyer deducts 1% from every instalment when it is paid or credited, whichever is earlier, and files Form 141 for each month in which a deduction is made.
What if the seller has no PAN?
The rate rises to 20% under section 397(2)(b)(i) of the 2025 Act (section 206AA earlier).
What if the buyer deposits the TDS late?
Interest runs at 1% a month for late deduction and 1.5% a month for late deposit (section 398(3)), counting part of a month as a month. A late fee of ₹200 a day, up to the TDS amount, applies for late filing (section 427).
Sources
Rates and rules last checked against the official sources below.
- Income-tax Act 2025, section 393, as amended by the Finance Act 2026 (Income Tax Department) Table serial no. 3(i): 1% of the consideration or stamp duty value, whichever is higher; Note 1 adds up all buyers and sellers; Note 3, corrected to serial 3(i) from 1 April 2026, taxes ₹50 lakh or more.
- CBDT Circular No. 23/2017, 19 July 2017 (Income Tax Department) TDS is worked out without GST that the agreement shows separately; kept in force under the 2025 Act by section 536(2)(j).
- Income-tax Act 2025, section 397 No TAN needed for property TDS; 20% when the seller has no PAN.
- Income-tax Act 2025, section 398 Interest of 1% a month for late deduction and 1.5% a month for late deposit.
- Income-tax Act 2025, section 427 Late fee of ₹200 a day, up to the TDS amount.
- Income-tax Act 2025, section 402 (definitions) Consideration includes parking, club membership, maintenance and similar charges.
- Form 141 FAQs (e-filing portal) Form 141 replaces Form 26QB; deposit within 30 days from the end of the month of deduction.
- Form 141 user manual (e-filing portal) Instalments, buyer and seller shares, and TDS rounded to the nearest rupee.
- Income-tax Rules 2026, rule 215(1) (Income Tax Department) The buyer downloads the TDS certificate (Form 132) from the portal and gives it to the seller.
- TDS on purchase of immovable property, old section 194-IA (Income Tax Department) The rule for payments before 1 April 2026.
- A price of exactly ₹50 lakh is treated as taxable.
- Where the stamp duty value is above the price, it shows 1% of each instalment and flags the top-up due with the last one.