Moment guide · FY 2026-27

I'm buying property worth more than ₹50 lakh

Do I need to deduct TDS when buying a house or flat above ₹50 lakh?

Sec 194-IASec 26QBSec 16BSec 195Verified 2026-08-11

Yes — if the total consideration is ₹50 lakh or more, you must deduct 1% TDS under section 194-IA on the consideration you actually pay (not stamp duty) and file Form 26QB online within 30 days of the end of the month of each deduction. No TAN is needed; your PAN is enough. If the seller is an NRI, use section 195 instead, with DTAA or rates-in-force.

Your legitimate options

Every route the statute actually gives you — with its condition, cap and deadline.

Route	Condition	Cap / deadline
Deduct 1% on each payment	Total consideration (not stamp duty value) is ₹50 lakh or more	1% of consideration; no TAN required — PAN suffices
No deduction	Total consideration is below ₹50 lakh	Nil
Withhold under section 195	Seller is a non-resident / NRI	Rate in force or DTAA rate; separate 15CA/15CB process

The #1 trap

Compute the 1% on the contract consideration, not on stamp duty or circle rate, and never ask for a TAN — Form 26QB is filed on TIN-NSDL with your PAN, within 30 days from the end of the month in which TDS is deducted.

The decision path

Follow it top to bottom — the first condition that matches is your answer.

IF total consideration ≥ ₹50 lakh → deduct 1% on each instalment every time you pay the seller
IF payment is staggered/EMI-based → deduct 1% on each instalment and file a separate 26QB for each deduction
IF there are multiple buyers → each buyer deducts 1% on their own share of consideration
IF seller is an NRI → do not use 194-IA; withhold under section 195 at DTAA/rates-in-force
IF TDS is not deducted or paid → interest per month under section 201 plus penalty up to 200% under section 271H

Worked example

Rohan, senior software engineer

Rohan signed a sale agreement on 5 February 2027 to buy a resale apartment in Whitefield, Bengaluru for ₹1.85 crore. Stamp duty of ₹16.65 lakh was paid separately at registration. The buyer's broker casually told Rohan TDS is 'not needed for resale flats', but the seller insisted on a bank transfer only after Rohan showed proof of deduction. The agreement had two payment dates: ₹90 lakh on 10 February and the balance ₹95 lakh on 15 March 2027. Because the total consideration of ₹1.85 crore is far above ₹50 lakh, Rohan must deduct 1% TDS on the consideration — not on stamp duty, not on the circle rate. On 10 February he deducts ₹90,000 and remits ₹89.10 lakh to the seller. On 15 March he deducts ₹95,000 and remits ₹94.05 lakh. He logs into the TIN-NSDL portal, selects Form 26QB, and files one form after the February deduction and another after the March deduction — each within 30 days from the end of the month of deduction. No TAN is generated; Rohan uses his PAN as the deductor identifier. After each 26QB is filed, a TDS certificate with challan details is generated. Rohan issues Form 16B to the seller within 15 days of the due date of filing each 26QB. He saves the acknowledgment copies with his home-loan paperwork, since the bank and the sub-registrar both ask for them. One of Rohan's friends later asks whether he should have deducted TDS on the stamp duty too — the answer is no; section 194-IA applies only to the amount of consideration for the transfer, excluding stamp duty, registration fees and other charges paid directly by the buyer. If Rohan had skipped the deduction, he would owe monthly interest under section 201(1A) from the date of deduction until payment, plus a penalty up to 200% of the TDS amount under section 271H. A quick call with us dials in the final figure.

Questions people actually ask

Do I need a TAN to file Form 26QB?

No. For property TDS under section 194-IA you use your PAN as deducting authority; no TAN is required.

Is TDS deducted on stamp duty and registration charges?

No. The 1% is on the consideration for the transfer (the price paid/agreed for the property), not on stamp duty, registration fees or other costs paid separately by the buyer.

What if I pay the seller in instalments?

Deduct 1% on each instalment and file Form 26QB for each deduction within 30 days from the end of the month in which that instalment is paid.

What rate applies when the seller is an NRI?

Section 195 applies instead of 194-IA. You must deduct at rates-in-force or the applicable DTAA rate and also handle Form 15CA/15CB. Ignore the flat 1% 194-IA route in that case.

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Sections: 194-IA, 26QB, 16B, 195 · Last verified 2026-08-11 · Reviewed by Harun Raaj & Associates, Chartered Accountants. Every figure cites the Income-tax Act, 1961 (with ITA 2025 mapping via our section index).