TDS on Property — 26QB Requirement Checker
Buying a property? Check instantly whether you must deduct 1% TDS and file Form 26QB — or whether Section 195 (Form 27Q) applies because the seller is an NRI.
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Requirement breakdown
Section 194-IAGet your Form 26QB / 27Q filed by a CA
We compute the TDS, file the challan-cum-statement and issue Form 16B / 16A to the seller — end to end.
Disclaimer: Indicative check for individual property transactions under the Income-tax Act. Actual TDS, rates and surcharge for NRI sellers depend on capital-gains character, holding period and any lower-deduction certificate. Provisions per the Finance Act 2025.
Section 194-IA vs Section 195 — which applies
The single most important question when buying immovable property is the seller's residential status. A resident seller triggers Section 194-IA (1% TDS, Form 26QB, no TAN). An NRI seller instead triggers Section 195, where TDS is on the capital gain at higher rates, needs a TAN, and is reported on Form 27Q — Form 26QB does not apply at all.
| Threshold | Property value ≥ ₹50,00,000 |
| TDS rate | 1% of consideration (higher of sale value / stamp value) |
| Form | Form 26QB (challan-cum-statement) |
| TAN needed? | No — buyer uses PAN |
| Deposit | Within 30 days of end of month of deduction |
| Certificate | Form 16B to the seller |
| Threshold | No ₹50L floor — applies to any consideration |
| TDS rate | On capital gains: ~20% LTCG / slab STCG, plus surcharge & cess |
| Form | Form 27Q (quarterly TDS return) |
| TAN needed? | Yes — buyer must obtain a TAN |
| Deposit | By 7th of the next month |
| Certificate | Form 16A to the seller |
How Form 26QB works
When Section 194-IA applies, the buyer (not the seller) is responsible for deducting and depositing the TDS. It is a self-contained process — no TAN, filed online per buyer–seller pair.
Deduct 1%
Deduct 1% of the consideration at the time of payment or credit to the resident seller — from each instalment if paid in parts.
File 26QB
File Form 26QB (challan-cum-statement) and pay the TDS within 30 days from the end of the month in which it was deducted. No TAN required.
One per pair
With multiple buyers or sellers, file a separate 26QB for every buyer–seller combination, splitting the value by their respective shares.
Issue Form 16B
Download Form 16B from TRACES and hand it to the seller as proof of the TDS deducted and deposited on their behalf.
Key terms explained
₹50 lakh threshold
Section 194-IA applies only when the consideration (or stamp-duty value, whichever is higher) is ₹50,00,000 or more. The test is on the full property value — you cannot escape it by adding co-buyers so each share falls below ₹50L.
Multiple buyers / sellers
The 1% still applies on the whole value, but each buyer files their own Form 26QB against each seller. Four combinations (2 buyers × 2 sellers) mean four separate 26QB filings, each for that pair's share.
No TAN for 194-IA
Unlike normal TDS, Section 194-IA lets an individual buyer deduct using just their PAN — no TAN is needed. This concession does not extend to Section 195 (NRI sellers), where a TAN is mandatory.
Form 16B
After filing 26QB and the TDS is processed, the buyer downloads Form 16B from the TRACES portal and issues it to the seller — their proof that 1% was deducted and credited to their PAN.
Questions people ask
Short answers on TDS on Property (26QB) Checker. Tap a question to open it.
01When must I deduct TDS on a property purchase?
Under section 194-IA, where the consideration or the stamp duty value of an immovable property, other than agricultural land, is ₹50 lakh or more and the seller is a resident. TDS is 1%.
02Is the threshold applied per buyer or per property?
Per property. Where there are multiple buyers or sellers, the ₹50 lakh test is applied to the total consideration for the property, not to each person's share — a point clarified to stop the threshold being split.
03Do I need a TAN?
No. TDS under 194-IA is deposited through Form 26QB, a challan-cum-statement based on PAN. Each buyer files a separate 26QB for each seller.
04By when must Form 26QB be filed?
Within 30 days from the end of the month in which the deduction was made. Form 16B is then downloaded from TRACES and given to the seller.
05Does this apply if the seller is an NRI?
No. A purchase from a non-resident falls under section 195, at a much higher rate on the whole consideration, and the buyer needs a TAN and must file Form 27Q instead.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.