TDS on Property Purchase Calculator – Section 393 (earlier 194-IA)
If you buy property worth ₹50 lakh or more, you, the buyer, must deduct tax at source and deposit it with the Income Tax Department. From 1 April 2026 this sits under Section 393 of the Income-tax Act, 2025 (the old Section 194-IA). The rate depends on the seller.
Indicative estimate. This result depends on government rates that are still pending verification against the official notification. Confirm the exact amount with the relevant department before paying.
- TDS rate
- 1%
- Applicable section
- Section 393(1), Table Sl. 3(i), Income-tax Act 2025 (earlier 194-IA)
- Net amount payable to seller
- ₹74,25,000
- Deposit the TDS within 30 days of the month-end using the challan-cum-statement prescribed under the 2025 Act (Form 26QB for residents and Form 27Q for NRIs under the old Act) and give the seller the TDS certificate.
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Formula
Resident seller (Section 393(1), Table Sl. 3(i)): TDS = 1% × higher of sale consideration and stamp duty value, if ≥ ₹50 lakh. NRI seller: 12.5% (long-term) or 30% (short-term) + 4% cess on the whole consideration, unless a lower-deduction certificate is obtained.
Worked example
₹75 lakh flat from a resident seller: deduct ₹75,000 and pay ₹74.25 lakh to the seller.
Assumptions
- Surcharge on NRI TDS is ignored; it applies above ₹50 lakh of the seller's income.
- For resident sellers the threshold applies to the total consideration, even if paid in instalments or to multiple sellers.
Frequently asked questions
- Did property TDS change under the Income-tax Act, 2025?
- The section number did: Section 194-IA of the 1961 Act is now Section 393(1), Table Sl. 3(i) of the 2025 Act, effective 1 April 2026. The 1% rate and ₹50 lakh threshold are unchanged. Forms are being renumbered, so check the e-filing portal for the current challan-cum-statement.
- Do I need a TAN to deduct property TDS?
- No, for resident sellers; the challan-cum-statement uses your PAN. For NRI sellers you need a TAN.
- What if the seller has no PAN?
- TDS is deducted at 20% under Section 206AA. Always collect the seller's PAN before payment.
Rules used: TDS on purchase of immovable property – Section 393, Income-tax Act 2025 (earlier 194-IA / 195). Last reviewed 2026-10-31.
These rates are pending verification against official sources. Confirm with the relevant department before relying on the figure.
- From 1 April 2026 the Income-tax Act, 2025 covers property TDS under Section 393(1), Table Sl. 3(i) (earlier Section 194-IA). The 1% rate and ₹50 lakh threshold are unchanged.
- For resident sellers, 1% applies on the whole consideration or stamp duty value, whichever is higher, when it is ₹50 lakh or more.
- Payments to non-resident sellers fall under the non-resident TDS provisions of Section 393 (earlier Section 195); surcharge is ignored here and the seller may obtain a lower-deduction certificate.
- Challan-cum-statement forms are being renumbered under the 2025 Act (Form 26QB / 27Q under the 1961 Act); confirm the current form on the e-filing portal.
Last reviewed 2026-10-31. Results are estimates for information only and do not constitute financial, tax or legal advice.