# TDS on Property Purchase Calculator: 1% Under 194-IA > TDS on property purchase: 1% under 194-IA when price or stamp duty value is INR 50 lakh or more, on the higher one. Split by buyer, with Form 26QB steps. Source: https://trykosh.com/tools/tds-on-property-calculator Free tool - Business and GST # TDS on property purchase calculator (194-IA) Buying a flat, house or plot worth INR 50 lakh or more from a resident seller? You must deduct 1% TDS and deposit it. Here's how much, and how to split it between joint buyers. Rules checked 25 October 2026Free - no sign-upRuns in your browser TDS to deduct (194-IA) INR 85,000 1% of INR 85,00,000 Paid to seller**INR 84,15,000** Rate**1%** Forms**26QB** Sale price INR 85,00,000 Stamp duty value INR 80,00,000 TDS base: the higher of the two INR 85,00,000 TDS at 1% INR 85,000 Balance paid to seller INR 84,15,000 Deposit with Form 26QB within 30 days from the end of the month you pay, then download Form 16B for the seller. Paying in instalments? Deduct 1% from each one. ## Upload your statement and Kosh does this for you. Upload your bank statements and Kosh separates business from personal spending and keeps your tax and GST dates in view. [Start free](/signup?via=tool-tds-on-property-calculator) ## How the TDS on property purchase calculator works Section 194-IA applies when you buy immovable property other than agricultural land from a resident seller. It kicks in if either the sale price or the stamp duty value (the government's circle-rate value) is INR 50 lakh or more. For joint deals, the threshold applies to the whole property, not to each buyer's share. TDS is 1% of the sale price or the stamp duty value, whichever is higher. So if you pay INR 1.2 crore for a flat valued at INR 1.32 crore for stamp duty, TDS is INR 1.32 lakh. The sale price includes charges linked to the transfer, such as car parking, club membership, electricity and water connection fees and advance maintenance. You deduct the TDS from what you pay the seller, at the time of each payment. With instalments, such as payments to a builder, deduct 1% from each. Deposit it with Form 26QB within 30 days from the end of the month of deduction. You don't need a TAN. Each buyer files their own Form 26QB for their share, and for each seller. Then download Form 16B from TRACES for the seller. If the seller has no valid PAN (or it's inoperative because it isn't linked with Aadhaar), TDS is 20%. A non-resident seller is a different case: section 195 applies, TDS is on the capital gain at the applicable rates plus surcharge and cess, and the buyer needs a TAN. This calculator doesn't cover that. TDS = 1% x max(sale price, stamp duty value), if either is INR 50 lakh or more No PAN 20% instead of 1% ## Worked example: Sameer and Pooja buying a flat in Thane Sameer and Pooja are buying a resale flat in Thane for INR 1.2 crore. The stamp duty value is INR 1.32 crore, which is higher, so TDS is 1% of INR 1.32 crore: INR 1,32,000. As equal co-owners, each deducts INR 66,000 and files a separate Form 26QB. The seller receives INR 1,18,68,000 directly. Because the stamp duty value is exactly 10% above the price, the buyers stay within the tolerance that would otherwise tax the gap as their income. TDS to deduct (194-IA) INR 1,32,000 1% of INR 1,32,00,000 (stamp duty value, as it's higher) Paid to seller**INR 1,18,68,000** TDS per buyer**INR 66,000** Forms**2 x 26QB** Sale price INR 1,20,00,000 Stamp duty value INR 1,32,00,000 TDS base: the higher of the two INR 1,32,00,000 TDS at 1% INR 1,32,000 Each of 2 equal buyers deducts INR 66,000 Balance paid to seller INR 1,18,68,000 Deposit with Form 26QB within 30 days from the end of the month you pay, then download Form 16B for the seller. Paying in instalments? Deduct 1% from each one. [Load this example into the calculator ->](?price=12000000&sdv=13200000&buyers=2#calculator) ## Good to know - A late Form 26QB costs INR 200 a day in fees, plus interest of 1% a month for late deduction and 1.5% a month for late deposit. - Check that the seller's PAN is operative on the e-filing portal before paying. An inoperative PAN means 20% TDS. - Home-loan disbursements to the builder also count as your payments. Deduct TDS from your own contribution or arrange it with the bank for each disbursement. - If the stamp duty value is more than 10% above your price, the excess can be taxed as your income under the rule known as section 56(2)(x). ## Frequently asked questions Is TDS applicable on property below INR 50 lakh? Not if both the sale price and the stamp duty value are below INR 50 lakh. If either one is INR 50 lakh or more, 1% TDS applies on the higher of the two. Who pays TDS on property purchase, the buyer or the seller? The buyer deducts it from the payment and deposits it with the government. The seller bears it economically, because they receive 1% less, but gets full credit for it against their own tax. How is TDS calculated when there are two buyers? The INR 50 lakh threshold looks at the whole price. Then each buyer deducts TDS on their own share of the payment and files a separate Form 26QB. For two equal owners of a INR 80 lakh flat, each deducts INR 40,000. What is the TDS rate when buying property from an NRI? 194-IA doesn't apply. Under section 195, the buyer deducts tax on the seller's capital gain at the rates that apply to the seller, often 12.5% on long-term gains plus surcharge and cess, unless the seller gets a lower-deduction certificate. The buyer needs a TAN and files Form 27Q. Is GST included in the value for TDS on an under-construction flat? The section looks at consideration for the transfer. Practice differs on whether GST shown separately is included, so many buyers deduct on the amount excluding GST when it is separately stated. Check with your builder's accountant and keep it consistent across instalments. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.