Frequently Asked Questions
What is Section 194IA TDS on property purchase? ＋
Section 194IA requires the buyer to deduct 1% TDS when purchasing immovable property (other than agricultural land) for ₹50 lakh or more. The buyer must deposit the TDS with the government using Form 26QB and issue Form 16B to the seller.
Who deducts TDS on property purchase — buyer or seller? ＋
The BUYER deducts TDS from the payment made to the seller. The buyer is responsible for filing Form 26QB and depositing the TDS. If multiple buyers or sellers, each buyer must deduct TDS on their proportionate share.
What is Form 26QB for property TDS? ＋
Form 26QB is the challan-cum-statement for TDS on property purchase (Section 194IA). It must be filed online on the Income Tax Department portal (tin.nsdl.com) within 30 days from the end of the month in which TDS is deducted.
Is TDS applicable on the entire property value or just the excess over ₹50 lakh? ＋
TDS at 1% applies on the ENTIRE sale consideration, not just the excess over ₹50 lakh. If a property is purchased for ₹60 lakh, TDS = 1% of ₹60 lakh = ₹60,000 (not 1% of ₹10 lakh).
What if the property is purchased in installments? ＋
TDS must be deducted on each installment payment proportionately. The total TDS across all installments must equal 1% of the total sale consideration. Each installment payment requires a separate Form 26QB filing.