How do you use the TDS on property calculator?
- Enter the full sale price (for all buyers together) and the stamp duty value, also called the guidance value, from the registration estimate.
- Enter the date you pay the seller and say if the seller has given their PAN.
- Read the TDS to deduct, what goes to the seller and the deposit date. Your share for a joint purchase and an NRI seller are under “Adjust your share and the seller’s residency”.
What is the TDS rule on buying property?
When you buy a flat, house or non-agricultural land from a resident seller, you must deduct tax at source and pay it to the government. Since 1 April 2026 the rule is in section 393(1) of the Income-tax Act, 2025 (Table, serial number 3(i)), which replaced section 194-IA.
- The rate is 1% of the sale price or the stamp duty value, whichever is higher.
- It applies when either value is ₹ 50 lakh or more. With several buyers or sellers, the ₹ 50 lakh test is on the whole deal, not each person’s share.
- If the seller does not give their PAN, the rate goes up to 20%.
- Agricultural land is outside this rule, and a different rule applies when the seller is an NRI.
You deposit the TDS with Form 141 (Schedule B), which replaced Form 26QB from tax year 2026-27, using your PAN. A TAN is not needed. The deposit is due within 30 days from the end of the month in which you deducted it, and you then give the seller a TDS certificate.
How the TDS is worked out
1
Base
Higher of sale price and stamp duty value2
Test
Applies if either value is ₹ 50,00,000 or more3
TDS
Base × 1% (20% without the seller’s PAN)Worked example: ₹ 60 lakh flat, ₹ 62 lakh stamp duty value
The stamp duty value is higher, so TDS is 1% of ₹ 62 lakh: ₹ 62,000. You pay the seller ₹ 59,38,000 and deposit ₹ 62,000 with Form 141. If the seller had not given their PAN, TDS would be ₹ 12,40,000, which is why it pays to get the PAN before the deal. If two buyers share the flat equally, each deducts ₹ 31,000.
How does the ₹ 50 lakh line work?
| Sale price | Stamp duty value | TDS |
|---|---|---|
| ₹ 48,00,000 | ₹ 49,00,000 | ₹ 0 |
| ₹ 48,00,000 | ₹ 51,00,000 | ₹ 51,000 |
| ₹ 50,00,000 | ₹ 45,00,000 | ₹ 50,000 |
| ₹ 90,00,000 | ₹ 85,00,000 | ₹ 90,000 |
| ₹ 1,50,00,000 | ₹ 1,50,00,000 | ₹ 1,50,000 |
What should you keep in mind?
- For an under-construction flat paid in instalments, TDS is deducted on each instalment once the total deal is ₹ 50 lakh or more.
- Late deduction or deposit brings interest and a late fee, so deduct when you pay and file on time.
- The TDS is not an extra cost: it is part of the price, and the seller claims credit for it in their return. Your total buying cost is in the total cost of buying a home calculator.
Frequently asked questions
1% of the sale price or the stamp duty value, whichever is higher, if either is ₹ 50 lakh or more. On a ₹ 60 lakh flat with a stamp duty value of ₹ 62 lakh, TDS is ₹ 62,000. If the seller has not given their PAN, the rate is 20%.
Yes. The rule applies when the price or the stamp duty value is ₹ 50 lakh or more, so a deal at exactly ₹ 50 lakh attracts ₹ 50,000 of TDS. At ₹ 49,99,999, with a stamp duty value below ₹ 50 lakh as well, no TDS is due under this rule.
It is now part of section 393(1), in the table of payments, serial number 3(i). The rate, the ₹ 50 lakh threshold and the stamp duty value rule are the same as under section 194-IA. The deposit is made with Form 141, Schedule B, which replaced Form 26QB from tax year 2026-27.
The ₹ 50 lakh test is on the whole deal, not on each person’s share. If the total is ₹ 50 lakh or more, each buyer deducts TDS on their own payment. With two equal buyers of a ₹ 62 lakh flat, each deducts ₹ 31,000 and files separately.
Within 30 days from the end of the month in which you deducted it. For a payment on 10 November 2026, the deadline is 30 December 2026. You use your PAN, so no TAN is needed. Indicative only. Please verify with your Chartered Accountant before acting.
No. When the seller is a non-resident, a different TDS rule applies, with higher rates linked to the seller’s capital gains, and you need a TAN. This calculator does not work that out. Please speak to your Chartered Accountant before paying an NRI seller.
Related answers and guides
- TDS on Flat Purchase from April 2026: Section 393
- TDS When an NRI Buys or Sells a Flat
- Before Property Registration in Bengaluru: 20 Checks
- NRI Buying Property in Bangalore (2026): FEMA, POA, TDS
Sources
- Income-tax Act, 2025, section 393(1), Table serial number 3(i) and its notes (1% TDS, ₹ 50 lakh threshold on the higher of price and stamp duty value, aggregate of buyers and sellers), and section 397(2) (20% without PAN), in force from 1 April 2026.
- Income-tax Rules, 2026: Form 141, Schedule B for TDS on transfer of immovable property, replacing Form 26QB. Checked 19 Oct 2026.
Indicative only. Please verify with your Chartered Accountant before acting.
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