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IndiaTax & ComplianceUpdated: Sep 13, 2026
Direct Answer
If you buy immovable property worth Rs 50 Lakhs or more, you must deduct 1% TDS from the payment to the seller under Section 194-IA. You must deposit this via Form 26QB within 30 days from the end of the month of deduction and issue Form 16B to the seller.
Buyer's Liability
Many buyers assume TDS is the seller's headache. Under Indian tax law, the buyer is penalized for failure to deduct or deposit TDS. If the property involves multiple buyers or sellers, the Rs 50 Lakh threshold applies to the overall property value, not individual shares.
How to Reconcile
- Bank Outflow: Your bank statement will show a payment to the seller (99%) and a payment to the government (1%).
- Filing: You do not need a TAN to file Form 26QB. It is PAN-based.
- Stamp Duty Value: Note that if the Stamp Duty Value exceeds the agreement value, the 1% TDS applies on the higher of the two.