₹ TaxSetu 2025
Property — Buyer's TDS

Buying Property? 194-IA TDS 1%, Form 26QB, 50C + NRI Seller Rules

Property above ₹50L? Deduct 1% TDS, no TAN, file 26QB within 30 days, give the seller 16B. TDS applies on the higher of price/stamp value. NRI seller? Different beast: 20%+ via 27Q. 50C's 110% rule can tax YOU too.

194-IA buyer's checklist

StepRule
ThresholdAbove ₹50 lakh consideration (agricultural land exempt)
Rate + base1% on higher of sale price / stamp-duty value; deduct per instalment if paying in parts
TAN needed?No — the 26QB route needs no TAN
Form 26QBWithin 30 days from month-end of deduction (one 26QB per buyer–seller PAN pair)
Form 16BDownload from TRACES, hand to seller — it's their TDS proof
NRI sellerNot 26QB! 20%+ LTCG TDS via 27Q + TAN; ask seller for a 197 lower-deduction certificate
Section 50C (110% rule): if stamp value exceeds price by >10%, the stamp value becomes YOUR cost for future capital gains AND the seller's sale price — undervaluation hurts both sides. Seller's side: CG on property → · Save with 54/EC/F →
📌 Remember: 26QB before registry, not after
Buying property above ₹50L? The 1% TDS via Form 26QB must be deposited within 30 days from month-end — and the seller hands you Form 16B only after that. Registry offices increasingly ask for the 26QB acknowledgement. Miss the sequence and the deal stalls at the counter. NRI seller? Different movie entirely — much higher TDS with surcharge, plus 15CA/CB paperwork. Budget an extra week and a CA call.
📌 Remember: buyer TDS vs seller stamp-value — different rules!
YOUR 1% TDS (26QB) applies on the consideration above ₹50L. Separately, the SELLER faces Sec 50C: if stamp-duty value exceeds consideration by 10%+, tax applies on the STAMP value. Same deal, two computations. As buyer, still verify the stamp value — an undervalued deal's 50C dispute can delay YOUR registration and resale chain. Clean circle-rate deals close fastest.

By TaxSetu Editorial Team · Last reviewed: 7 October 2026

Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in

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Frequently Asked Questions

1% TDS on purchases above ₹50L, on the higher of price or stamp-duty value — no TAN needed, file 26QB within 30 days.

File one 26QB per buyer–seller PAN pair — joint purchases need multiple filings.

Skip 26QB entirely: deduct 20%+ LTCG TDS via 27Q with TAN. Ask the seller for a 197 lower-deduction certificate to cut it.

If stamp value exceeds the price by over 10%, stamp value becomes the seller's sale price and your future cost — undervaluation hurts both sides.