TDS on Property Purchase deduct, deposit, file — don't miss a step.
TDS compliance for buyers of immovable property — 1% under Section 194IA for resident sellers, higher rates under Section 195 for non-resident sellers, with Form 26QB and 27Q filing, Form 16B issuance, and full registration support.
Every buyer of immovable property above ₹50 lakh in India is required to deduct TDS at the time of payment to the seller. The applicable section depends on the seller's tax residency — Section 194IA at 1% for resident sellers, and Section 195 at rates ranging from 20% to 23.92% (with surcharge and cess) for non-resident sellers, subject to lower-deduction certificates where obtained.
TDS on property is one of the highest-risk compliance areas. Missing or wrong deduction makes the buyer the assessee in default, attracts interest under Sections 201 and 201(1A), and creates a TDS liability that the buyer must discharge with personal funds. Non-payment also blocks property registration in many states.
Our team handles every aspect — verifying seller residency, choosing the right section, calculating the deduction including across multiple installments, filing Form 26QB for resident sellers or Form 27Q for non-residents, issuing Form 16B / 16A, supporting Section 197 lower-deduction certificates, and reconciling all transactions in Form 26AS for both buyer and seller.
Our Property TDS Services
Section 194IA Filing
Form 26QB challan-cum-statement filing for purchase from resident sellers above ₹50 lakh consideration.
Section 195 Filing
Form 27Q quarterly filing for purchase from non-resident sellers, with treaty rate and TRC application.
Form 16B & 16A Issue
Generation and issue of Form 16B to resident sellers and Form 16A to non-resident sellers from TRACES.
Lower-Deduction Support
Assistance to NRI sellers in applying for Section 197 certificate for reduced TDS rates.
Installment & Pre-EMI TDS
Correct deduction across multiple installments, advance payments, and possession-linked schedules.
Joint Buyer Allocation
Correct allocation of TDS between joint buyers in proportion to ownership share and payment.
Registration Coordination
Coordination with sub-registrar offices that demand TDS challan and 26QB acknowledgement at registration.
Defaults & Notices
Reply to CPC-TDS default notices for short or late deduction, with rectification where applicable.
How We Handle Property TDS
Seller Status Check
Verification of seller's tax residency to determine whether 194IA or 195 applies.
Section & Rate Selection
Selection of correct section, rate, and treatment of indexation/cost basis for non-residents.
Deduction & Challan
Calculation of TDS at the time of each payment and deposit through Form 26QB or challan 281.
Statement Filing
Filing of Form 26QB for residents or inclusion in Form 27Q for non-residents.
Certificate & Records
Issue of Form 16B / 16A and reconciliation in 26AS for buyer and seller.
Why Get Property TDS Right
Frequently Asked Questions
TDS under Section 194IA applies when buying immovable property (other than agricultural land) from a resident seller, where consideration is ₹50 lakh or more.
1% under Section 194IA for resident sellers; for NRI sellers, Section 195 rates apply — typically 20% on long-term gains plus surcharge and cess, unless a lower-deduction certificate is obtained.
Form 26QB challan-cum-statement for resident sellers under Section 194IA; Form 27Q quarterly return for non-resident sellers under Section 195.
Yes. Each joint buyer must file a separate Form 26QB in proportion to their share of the consideration paid to the seller.
Yes. NRI sellers can apply for a lower-deduction certificate under Section 197 from the jurisdictional AO before the sale to reduce the high default rate.
Buying Property Above ₹50 Lakh?
Don't let TDS be the surprise at registration. Talk to our team for clean, complete TDS handling on every property purchase — resident or NRI seller.
Get Property TDS Done or call +91 9819 000 511