What is the due date for Form 26QB?

Form 26QB must be filed and TDS deposited within 30 days from the end of the month of deduction. Form 16B must be issued to the seller within 15 days of the Form 26QB due date.

Is TDS applicable if there are multiple buyers or sellers?

Yes. Each buyer files a separate Form 26QB for their share. Where there are multiple sellers, a separate Form 26QB is required for each seller. Each buyer-seller combination needs its own Form 26QB.

TDS on Purchase of Property – Section 194IA Compliance & Form 26QB Services

Q: Who is required to deduct TDS on purchase of property?

Every buyer of immovable property (not agricultural land) where consideration is Rs. 50 lakh or more must deduct TDS at 1% under Section 194IA. Applicable to all buyers — individuals, HUFs, companies, LLPs. No TAN required; uses buyer's PAN via Form 26QB.

Q: What is the TDS rate on property purchase and is GST included?

1% of the higher of sale consideration or stamp duty value (post Finance Act 2022). GST is excluded from the TDS base. Other charges like parking or development charges may be included if part of the consideration.

Q: What happens if Form 26QB is filed late?

Late filing fee of Rs. 200 per day under Section 234E, interest of 1% per month for late deduction and 1.5% per month for late deposit under Section 201(1A), and potential penalty under Section 271C.

Complete Assistance for TDS Deduction on Immovable Property Purchase Under Section 194IA

Under Section 194IA of the Income Tax Act, 1961, every buyer of immovable property (other than agricultural land) is required to deduct TDS at 1% of the total sale consideration at the time of payment to the seller, if the sale consideration is Rs. 50 lakh or more. This TDS must be deposited using Form 26QB — a challan-cum-return — within 30 days from the end of the month in which TDS was deducted. The buyer must then issue a TDS certificate in Form 16B to the seller within 15 days of the due date for furnishing Form 26QB. Section 194IA is applicable to all buyers — individuals, HUFs, companies, and firms — making it one of the most widely applicable TDS provisions in India.

Errors in Form 26QB, late filing, or incorrect TDS computation attract significant late fees, interest, and penalties — and delay the seller's ability to claim TDS credit against their capital gains tax liability. Our expert team provides complete TDS on property purchase compliance, connecting with our Form 26QB filing service, TDS Return Filing, Section 156 Demand Notice resolution for TDS demands, and TDS & Tax Liability advisory.

Our TDS on Property Purchase Services

TDS Computation – Section 194IA

Accurate computation of TDS on property purchase — determining the correct base (total sale consideration including all payments), applicable rate (1%), and whether the Rs. 50 lakh threshold is met for the specific transaction.

Form 26QB Preparation & Filing

End-to-end preparation and online filing of Form 26QB on the TIN-NSDL portal, including correct entry of buyer and seller PAN, property details, consideration amount, and TDS challan data for each installment payment.

TDS Challan Payment Advisory

Guidance on timely payment of TDS through the online challan linked to Form 26QB within 30 days from the end of the month of deduction, to avoid late filing fees under Section 234E.

Form 16B Certificate Generation

Downloading and issuing the TDS certificate in Form 16B from TRACES to the property seller within 15 days of the Form 26QB due date, serving as proof of TDS deduction and deposit.

Multiple Instalment TDS Management

Handling TDS compliance for properties purchased in multiple instalments — including computation of TDS on each payment, filing of separate Form 26QB for each instalment, and overall reconciliation.

Form 26QB Correction & Default Resolution

Filing of Form 26QB correction requests for errors in PAN, property details, or consideration amounts, and resolution of demands arising from short deduction, late filing, or challan mismatches.

Why Professional Assistance Matters for TDS on Property Purchase

Late filing fee of Rs. 200 per day under Section 234E is levied automatically and cannot be waived — timely filing is essential
Incorrect PAN entry in Form 26QB blocks the seller's 26AS credit, delaying their ITR refund and creating disputes
Properties purchased in multiple instalments require a separate Form 26QB for each payment — complex to manage without professional support
TDS on property is applicable to each co-buyer and co-seller separately, requiring careful structuring when multiple parties are involved
Non-deduction of TDS makes the buyer liable as assessee-in-default under Section 201 for the entire TDS amount plus interest
Form 16B must be issued to the seller within the prescribed time — delays create legal liability and registration process complications

Frequently Asked Questions – TDS on Purchase of Property Section 194IA

Who is required to deduct TDS on purchase of property under Section 194IA?

Every buyer of immovable property (other than agricultural land) is required to deduct TDS at 1% of the sale consideration, provided the total consideration is Rs. 50 lakh or more. This obligation applies to all categories of buyers — individuals, HUFs, companies, LLPs, and firms. Unlike most other TDS provisions, there is no requirement for the buyer to have a TAN (Tax Deduction Account Number) — TDS on property purchase is made using the buyer's own PAN through Form 26QB.

What is the TDS rate on property purchase and is GST included in the base?

The TDS rate under Section 194IA is 1% of the sale consideration (or stamp duty value, whichever is higher for transactions covered by Section 43CA/50C). Post the Finance Act 2022, if the agreement value is lower than the stamp duty value, TDS is computed on the higher of the two. GST paid on property is not part of the sale consideration for TDS purposes — only the base property price is subject to TDS. However, other charges like parking, club membership, and infrastructure development charges may be included if they form part of the consideration.

What is the due date for filing Form 26QB and paying TDS on property?

Form 26QB must be filed and the TDS must be deposited within 30 days from the end of the month in which the TDS was deducted (i.e., in which the payment or agreement, whichever is earlier, was made). For example, if TDS was deducted on 15th March, Form 26QB must be filed and TDS deposited by 30th April. The Form 16B TDS certificate must be issued to the seller within 15 days from the due date of furnishing Form 26QB (which effectively means within 45 days of the payment date).

Is TDS on property applicable if there are multiple buyers or sellers?

Yes. Where there are multiple buyers, each buyer is individually responsible for deducting and depositing their proportionate share of TDS on the consideration they pay. Similarly, where there are multiple sellers, TDS must be deducted from each seller's share of the consideration. A separate Form 26QB must be filed for each buyer-seller combination. For example, if two buyers purchase from one seller, two Form 26QBs must be filed. If one buyer purchases from two sellers, two Form 26QBs must be filed — one per seller.

What happens if Form 26QB is filed late or TDS is not deducted on property?

Late filing of Form 26QB attracts a fee of Rs. 200 per day under Section 234E for every day of delay, up to the amount of TDS. Additionally, interest under Section 201(1A) is applicable: 1% per month from the date TDS was deductible to the date of actual deduction, and 1.5% per month from the date of deduction to the date of deposit. If TDS is not deducted at all, the buyer is treated as assessee-in-default and the entire TDS amount plus interest becomes payable. A penalty under Section 271C may also be levied.

Buying Property? Ensure Correct TDS Compliance from Day One.

Our experts will handle your Form 26QB filing, TDS computation, challan payment, and Form 16B issuance seamlessly.