Buying property worth ₹50 lakh or more? Work out the TDS you must deduct from the payment and deposit with the government.
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How it is worked out
- TDS applies when a resident buys immovable property, other than rural agricultural land, from a resident seller and the price or stamp duty value is ₹50 lakh or more.
- The rate is 1% of the higher of the price and the stamp duty value, or 20% if the seller has no PAN.
- From 1 April 2026 this TDS falls under section 393(1) of the Income-tax Act, 2025. It was section 194-IA.
- The buyer deposits the TDS with a challan-cum-statement and gives the seller a TDS certificate.
Questions people ask
There are two buyers or two sellers. How does the ₹50 lakh limit work?
The limit looks at the total price of the property. Each buyer then deducts TDS on their own payment to each seller.
The seller is a non-resident. Does this apply?
No. Payments to non-resident sellers follow different rules and rates. Talk to us before you pay.
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Want us to work it out for you?
Share your documents and we will check the figures before anything is filed. We call back during office hours.