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TDS on property purchase calculator.
The buyer deducts 1% TDS when the property’s price or stamp duty value, whichever is higher, is ₹50 lakh or more and the seller is resident.
₹75 L
The government value used for stamp duty; leave 0 if not known
TDS is worked out on the amount each buyer pays, rounded to the nearest rupee. The threshold uses the higher of the price and the stamp duty value, as the Income Tax Department’s FAQ words it.
General information as published by the Income Tax Department, reviewed 12 Oct 2026 — not tax advice; check the e-filing portal or a chartered accountant before you pay.
Sources
- Income Tax Department — TDS FAQs (rates, threshold, section 206AA) (accessed 2026-10-12)
- Income Tax Department — FAQs and guidance notes on forms under the Income-tax Rules, 2026 (accessed 2026-10-12)
- Income Tax e-filing portal — e-pay tax FAQ (TAN, resident and non-resident sellers) (accessed 2026-10-12)
How it works
The maths, in plain words.
- 01
Threshold
Base = the higher of the price and the stamp duty value of the whole property. If the base is below ₹50,00,000, no TDS is deducted.
- 02
Rate
1% for a resident seller. If the seller does not furnish a PAN, section 206AA applies: the higher of the specified rate, the rates in force and 20%.
- 03
Amount
TDS = amount the buyer pays × rate, worked out per buyer on their share and rounded to the nearest rupee. The stamp duty value only decides whether TDS applies here.
Questions
Frequently asked.
Who deducts TDS when property is bought?
The buyer deducts TDS from the amount paid to a resident seller when the price or stamp duty value of the property, whichever is higher, is ₹50 lakh or more, and pays it to the government. The rate is 1%, and agricultural land is outside this rule.
Does the buyer need a TAN to pay TDS on property?
No. The Income Tax Department’s e-pay tax FAQ says the payer or deductor is not required to obtain a Tax Deduction Account Number (TAN) for this payment. The buyer pays with their PAN through the challan-cum-statement on the e-filing portal instead.
Which forms replaced Form 26QB and Form 16B?
Under the Income-tax Rules, 2026, Form 141 is the challan-cum-statement that replaced Form 26QB, and Form 132 is the TDS certificate that replaced Form 16B. The buyer files the statement and gives the seller the certificate, as listed in the department’s guidance on the new forms.
How does TDS work with joint buyers?
The ₹50 lakh test looks at the whole property: its price or stamp duty value, whichever is higher. When it applies, each buyer deducts TDS on the share they actually pay, so two buyers paying 70% and 30% deduct 1% of their own payments.
What if the seller has no PAN or is non-resident?
Without the seller’s PAN, section 206AA requires the higher of the specified rate, the rates in force and 20%. If the seller is non-resident, this 1% rule does not apply: the department says the applicable form is Form 27Q, so speak to a chartered accountant.
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