Do I have to deduct TDS when I buy a property?

TDS on property was in section 194-IA of the Income-tax Act, 1961 (now section 393(1), Table serial 3(i), of the Income-tax Act, 2025). The rate and the ₹50 lakh threshold are unchanged; the forms have new numbers.

When TDS applies

• Property: land (other than agricultural land) or a building, or part of one, including a flat.
• Value: consideration of ₹50 lakh or more. With several buyers or sellers, the ₹50 lakh test applies to the total price, not to each share.
• Seller: a resident. If the seller is a non-resident, different and higher TDS applies (section 195 of the 1961 Act, now section 393(2) of the 2025 Act), and the buyer needs a TAN.

How much

1% of the consideration or the stamp duty value, whichever is higher. If the seller has not given a valid PAN, the rate is 20%. Deduct when you pay or credit each instalment, including advances.

Steps

1. Collect the seller's PAN and check that it is active.
2. Deduct 1% from each payment.
3. File Form 141 (the challan-cum-statement) on the e-filing portal and pay the tax, within 30 days from the end of the month of deduction. For example, a payment in November 2026 is due by 30 December 2026. Each buyer files one form and can list all the sellers.
4. Download the TDS certificate (Form 132, replacing Form 16B) from TRACES after the form is processed, and give it to the seller.

For payments made before 1 April 2026, the old procedure applies: section 194-IA, Form 26QB and Form 16B.

If you are late

• Interest: 1% a month for late deduction, and 1.5% a month for late payment after deduction (section 201(1A), now section 398(3)).
• Late fee: ₹200 a day until the statement is filed, up to the TDS amount (section 234E, now section 427).
• Penalty may apply for failure to file.

The seller can claim the TDS against their own tax only if it is reported correctly, so check the seller's PAN, name and amounts carefully.