Is TDS applicable if the property costs less than ₹50 lakh?

Not for a resident seller, provided both the price and the stamp duty value are below ₹50 lakh. The test is on the total value, so joint buyers of a ₹60 lakh property must each deduct even if their share is smaller. For an NRI seller there is no ₹50 lakh threshold at all, so every purchase needs a TDS check.

How much TDS applies when buying property from an NRI?

TDS is charged on the seller's capital gain at the rate that applies to it. Long-term capital gains attract 12.5% plus surcharge and cess; short-term gains are taxed at the applicable rates. Because buyers cannot verify the seller's cost, they usually deduct on the full price unless the seller gives them a Form 128 lower deduction certificate.

What replaced Form 26QB and Form 16B?

For payments made on or after 1 April 2026, Form 26QB is replaced by Form 141, the challan-cum-statement under the Income-tax Rules, 2026. The certificate given to the seller, earlier Form 16B, is now Form 132. Payments made up to 31 March 2026, and corrections for them, still use Form 26QB and Form 16B.

What is the due date for filing Form 141?

Form 141 for a resident seller is due within 30 days from the end of the month in which the tax is deducted. If you pay the seller on 12 September, the form is due by 30 October. Each instalment has its own due date, based on the month in which that instalment was paid and TDS was deducted.

What happens if I file Form 141 late?

A late filing fee of ₹200 for every day of delay applies, capped at the amount of TDS. This is under s.427 of the Income-tax Act, 2025 for periods from 1 April 2026, and s.234E of the 1961 Act for earlier periods. Interest for late deduction or late payment is charged separately from this fee.

What if I forgot to deduct TDS when I paid the seller?

Deduct from the next instalment if any payment is still due, or pay the TDS from your own funds, and file the form at once with the late fee and interest. For periods up to 31 March 2026, interest is 1% a month for not deducting and 1.5% a month for late payment. Filing before a notice arrives keeps the cost lowest.

Is TDS deducted on stamp duty value or the agreement price?

On whichever is higher. If the agreement price is ₹45 lakh but the stamp duty value is ₹55 lakh, the ₹50 lakh test is met and TDS is 1% of ₹55 lakh. Charges linked to the purchase, such as parking, club membership and maintenance paid to the seller, also form part of the consideration.

Is TDS applicable on agricultural land?

TDS under the resident-seller provision does not apply to rural agricultural land, because it is not treated as a capital asset. Agricultural land inside municipal limits or the specified urban distance is a capital asset, so TDS applies to it in the normal way. We check the land records and location before deciding.

Can an NRI seller reduce TDS on the sale?

Yes. The NRI seller can apply on TRACES for a lower or nil deduction certificate in Form 128 under s.395, based on the actual tax on the gain. It must be obtained before the payment, because it applies only to payments made after it is issued. There is no government fee for the application.

Who bears the TDS, the buyer or the seller?

The seller bears the economic cost, because the TDS is deducted from the price paid to them and credited against their tax. The buyer carries the legal responsibility to deduct, pay, report and issue the certificate. If the buyer does not deduct, the buyer is treated as in default and pays the tax, interest and fee.

Can the seller get a refund of excess TDS?

Yes. The seller claims credit for the TDS in their income tax return and receives a refund if the TDS exceeds their final tax. For NRI sellers this is common when TDS was deducted on the full price. A lower deduction certificate before the sale avoids locking up the money until the refund is processed.

NRI se property kharidne par TDS kaise bharein?

Check the payment date first. For payments up to 30 September 2026, apply for a TAN, deduct TDS on the seller's capital gain, pay it and report it in the quarterly statement for non-resident payees. From 1 October 2026 under the Finance Act 2026, a resident individual or HUF buyer can pay through a PAN-based challan without a TAN. We compute the amount and file it for you.

TDS on Property Purchase

TDS on Property Purchase deducted, paid and certified right, whether the seller is resident or NRI.

When you buy property in India, you, the buyer, must deduct TDS before paying the seller. For a resident seller it is 1% through Form 141 when the price is ₹50 lakh or more. For an NRI seller, TDS is charged on the capital gain at the applicable rate, and from 1 October 2026 under the Finance Act 2026, a resident individual or HUF buyer no longer needs a TAN to pay it.

Talk to our team See process

Qualified CA / CS partnersResident cases usually in one working dayBest for: Property buyers (resident sellers at 1%, NRI sellers on gains)

Starting at

₹1,999 onwards

TDS on Property

Property buyers (resident sellers at 1%, NRI sellers on gains)

1% via Form 141 for resident sellers

NRI seller TDS on gains with Form 128 support

No TAN route from 1 October 2026 for individual buyers

Form 132 and Form 131 certificates from TRACES

Timeline

Resident cases usually in one working day

What it is

TDS on Property, explained in plain English.

TDS on property is tax the buyer holds back from the sale price and pays to the government on the seller's behalf. The buyer is legally responsible for deducting, paying, reporting and giving the seller a certificate, while the seller gets credit for this TDS in their own return and claims a refund if it exceeds their actual tax. Two things decide your route: whether the seller is resident or non-resident for tax purposes, and the date you make the payment. These rules apply to immovable property other than rural agricultural land.

For payments made up to 31 March 2026, and corrections to them, see Form 26QB filing and correction. If the TDS exceeds the seller's final tax, see the seller's refund of excess TDS.

Key terms

The vocabulary you'll see on the portal.

Section 393(1)

Resident seller TDS: 1% where consideration or stamp duty value is ₹50 lakh or more. Applies from 1 April 2026 under the Income-tax Act, 2025.

Form 141

Challan-cum-statement for property, rent and similar TDS by individuals. Replaces Forms 26QB, 26QC, 26QD and 26QE. Due within 30 days from the end of the month of deduction. No TAN needed.

Form 132

TDS certificate given to the seller. Replaces Form 16B and is downloaded from TRACES.

Section 393(2)

TDS on payments to non-resident sellers. Charged on the capital gain at the applicable rate, with no ₹50 lakh threshold.

Form 144 and Form 131

Quarterly statement (old 27Q) and certificate (old 16A) for the TAN route on non-resident payments.

Form 128

Lower or nil deduction certificate under section 395, applied for on TRACES before the payment. Replaces Form 13.

Routes & scenarios

Match the situation to the right fix.

Resident seller, 1% via Form 141

Seller is resident and the higher of price and stamp duty value is ₹50 lakh or more.

Test is on total value, not per share
1% on each instalment for staged payments
Form 141 within 30 days from the end of the month
No TAN needed, filing on PAN

NRI seller, TDS on gains

Seller is non-resident. TDS runs on the capital gain at the applicable rate.

12.5% plus surcharge and cess for long-term gains
No ₹50 lakh threshold, every purchase needs a check
Form 128 certificate cuts excess TDS before payment
PAN-based challan from 1 October 2026 for individual buyers

Joint buyers and sellers

More than one buyer, more than one seller, or both.

₹50 lakh test on total property value
Each buyer-seller pair files its own Form 141
Correct share shown on each form

Instalment payments

Under-construction property or staged payment plans.

TDS on each instalment when paid
One Form 141 per month of payment
Cumulative tracking across stages

The process

TDS on Property - from kickoff to confirmation.

Classify

We confirm the seller's residential status, the buyers and sellers, the payment schedule and the higher of consideration and stamp duty value.

Compute

We work out the TDS for each buyer-seller pair and each instalment, including surcharge and cess for an NRI seller.

Set up the route

Resident seller: Form 141 on PAN. NRI seller with payment before 1 October 2026: TAN application. NRI seller with payment from 1 October 2026: PAN-based challan for resident individual and HUF buyers.

File and pay

We prepare the form, you pay from your own bank account, and we check the challan details match.

Certificate

We download Form 132, or the applicable certificate, from TRACES and send it to you for the seller.

Follow-up

If a default notice appears on TRACES, we reply and correct it.

Documents required

What we'll need from you.

Upload via our secure portal. We pre-check every scan before filing - cuts portal rejections by ~90%.

PAN of every buyer and every seller, with address and contact details

Sale agreement and payment schedule, with instalment dates for under-construction property

Stamp duty value or circle rate document

Share of each buyer and each seller in the property

For an NRI seller: proof of residential status, the Form 128 certificate if obtained, and purchase cost records if a certificate is being applied for

Bank account from which each payment will be made

For payments to an NRI seller before 1 October 2026: TAN, or the details to apply for one

TDS on Property FAQ

Common questions, answered.

Still unsure if TDS on Property is right for your case? Talk to our team and we will walk you through your specifics.

Still have questions?

Tell us about your case and our team will walk through it and outline next steps.

Talk to our team →

The rate is 1% of the higher of the sale consideration and the stamp duty value, where that amount is ₹50 lakh or more. From 1 April 2026 this falls under s.393(1) of the Income-tax Act, 2025 and is paid through Form 141, which replaced Form 26QB. The buyer does not need a TAN and files using PAN details.

Ready when you are

Let's get your TDS on Property sorted this week.

Our team will get on a call with you, confirm scope and start the work.

Talk to our team Browse Tax Filing & Compliance

TDS on Property Purchase

TDS on Property Purchase deducted, paid and certified right, whether the seller is resident or NRI.

Talk to our team See process

Qualified CA / CS partnersResident cases usually in one working dayBest for: Property buyers (resident sellers at 1%, NRI sellers on gains)

Starting at

₹1,999 onwards

TDS on Property

Property buyers (resident sellers at 1%, NRI sellers on gains)

1% via Form 141 for resident sellers

NRI seller TDS on gains with Form 128 support

No TAN route from 1 October 2026 for individual buyers

Form 132 and Form 131 certificates from TRACES

Timeline

Resident cases usually in one working day

What it is

TDS on Property, explained in plain English.

For payments made up to 31 March 2026, and corrections to them, see Form 26QB filing and correction. If the TDS exceeds the seller's final tax, see the seller's refund of excess TDS.

Key terms

The vocabulary you'll see on the portal.

Section 393(1)

Resident seller TDS: 1% where consideration or stamp duty value is ₹50 lakh or more. Applies from 1 April 2026 under the Income-tax Act, 2025.

Form 141

Challan-cum-statement for property, rent and similar TDS by individuals. Replaces Forms 26QB, 26QC, 26QD and 26QE. Due within 30 days from the end of the month of deduction. No TAN needed.

Form 132

TDS certificate given to the seller. Replaces Form 16B and is downloaded from TRACES.

Section 393(2)

TDS on payments to non-resident sellers. Charged on the capital gain at the applicable rate, with no ₹50 lakh threshold.

Form 144 and Form 131

Quarterly statement (old 27Q) and certificate (old 16A) for the TAN route on non-resident payments.

Form 128

Lower or nil deduction certificate under section 395, applied for on TRACES before the payment. Replaces Form 13.

Routes & scenarios

Match the situation to the right fix.

Resident seller, 1% via Form 141

Seller is resident and the higher of price and stamp duty value is ₹50 lakh or more.

Test is on total value, not per share
1% on each instalment for staged payments
Form 141 within 30 days from the end of the month
No TAN needed, filing on PAN

NRI seller, TDS on gains

Seller is non-resident. TDS runs on the capital gain at the applicable rate.

12.5% plus surcharge and cess for long-term gains
No ₹50 lakh threshold, every purchase needs a check
Form 128 certificate cuts excess TDS before payment
PAN-based challan from 1 October 2026 for individual buyers

Joint buyers and sellers

More than one buyer, more than one seller, or both.

₹50 lakh test on total property value
Each buyer-seller pair files its own Form 141
Correct share shown on each form

Instalment payments

Under-construction property or staged payment plans.

TDS on each instalment when paid
One Form 141 per month of payment
Cumulative tracking across stages

The process

TDS on Property - from kickoff to confirmation.

Classify

We confirm the seller's residential status, the buyers and sellers, the payment schedule and the higher of consideration and stamp duty value.

Compute

We work out the TDS for each buyer-seller pair and each instalment, including surcharge and cess for an NRI seller.

Set up the route

File and pay

We prepare the form, you pay from your own bank account, and we check the challan details match.

Certificate

We download Form 132, or the applicable certificate, from TRACES and send it to you for the seller.

Follow-up

If a default notice appears on TRACES, we reply and correct it.

Documents required

What we'll need from you.

Upload via our secure portal. We pre-check every scan before filing - cuts portal rejections by ~90%.

PAN of every buyer and every seller, with address and contact details

Sale agreement and payment schedule, with instalment dates for under-construction property

Stamp duty value or circle rate document

Share of each buyer and each seller in the property

For an NRI seller: proof of residential status, the Form 128 certificate if obtained, and purchase cost records if a certificate is being applied for

Bank account from which each payment will be made

For payments to an NRI seller before 1 October 2026: TAN, or the details to apply for one

TDS on Property FAQ

Common questions, answered.

Still unsure if TDS on Property is right for your case? Talk to our team and we will walk you through your specifics.

Still have questions?

Tell us about your case and our team will walk through it and outline next steps.

Talk to our team →

Ready when you are

Let's get your TDS on Property sorted this week.

Our team will get on a call with you, confirm scope and start the work.

Talk to our team Browse Tax Filing & Compliance

TDS on Property Purchase deducted, paid and certified right, whether the seller is resident or NRI.

TDS on Property, explained in plain English.

The vocabulary you'll see on the portal.

Match the situation to the right fix.

Resident seller, 1% via Form 141

NRI seller, TDS on gains

Joint buyers and sellers

Instalment payments

TDS on Property - from kickoff to confirmation.

Classify

Compute

Set up the route

File and pay

Certificate

Follow-up

What we'll need from you.

Common questions, answered.

What is the TDS rate on property purchase from a resident seller?

Is TDS applicable if the property costs less than ₹50 lakh?

Do I need a TAN to buy property from an NRI?

How much TDS applies when buying property from an NRI?

What replaced Form 26QB and Form 16B?

Let's get your TDS on Property sorted this week.

TDS on Property Purchase deducted, paid and certified right, whether the seller is resident or NRI.

TDS on Property, explained in plain English.

The vocabulary you'll see on the portal.

Match the situation to the right fix.

Resident seller, 1% via Form 141

NRI seller, TDS on gains

Joint buyers and sellers

Instalment payments

TDS on Property - from kickoff to confirmation.

Classify

Compute

Set up the route

File and pay

Certificate

Follow-up

What we'll need from you.

Common questions, answered.

What is the TDS rate on property purchase from a resident seller?

Is TDS applicable if the property costs less than ₹50 lakh?

Do I need a TAN to buy property from an NRI?

How much TDS applies when buying property from an NRI?

What replaced Form 26QB and Form 16B?

Let's get your TDS on Property sorted this week.