Services
The buyer bears 100% of the TDS obligation on any property purchase exceeding ₹50 Lakhs. We file Form 26QB, deposit the challan, and issue Form 16B to the seller — within the statutory 30-day window.
What you get
Property purchases at ₹50 Lakhs or above trigger a statutory withholding obligation under Section 194-IA that the Income Tax Act assigns entirely to the buyer. Before releasing any payment to the seller, the buyer must deduct 1% of the sale consideration, deposit it with the government via Form 26QB within 30 days from the end of the month of deduction, and issue Form 16B to the seller as a certified record. These three steps carry discrete deadlines and penalty structures. The Income Tax Department’s automated system cross-references stamp duty registration data against Form 26QB filings in near real-time — a missing or misfiled return generates an automated notice to the buyer’s PAN independently of any scrutiny selection, and the penalty meter starts the day after the deadline passes.
Statutory parameters
Mandatory threshold
₹50L
TDS applies to any property transaction at or above this consideration
TDS Rate
1%
Under Section 194-IA; computed on the higher of agreement value or stamp duty value
Days to deposit
30
From end of the month of deduction — not 30 days from the registry date
Per day — Section 234E
₹200
Late filing fee; plus 1.5% per month interest under Section 201(1A)
The computation base is not simply the registered sale price. Section 194-IA requires TDS on the higher of the agreement value and the stamp duty value assessed by the state government. Where a state has determined stamp duty value at ₹95 Lakhs on a property registered at ₹80 Lakhs, the correct TDS base is ₹95 Lakhs. Buyers who default to the agreement value alone create an underpayment that the department’s matching system detects and flags — with interest running from the original due date, without any advance warning.
Transaction type
The standard route. TDS at 1% of the higher of agreement value or stamp duty value, deposited via Form 26QB on the TIN-NSDL or e-pay tax portal. One Form 26QB per buyer-seller PAN combination — co-owned properties require a separate filing for each pairing. Form 16B is generated from the TRACES portal within 15 days of challan deposit and issued to the seller as formal confirmation of the deduction.
Form 26QB does not apply when the seller is a non-resident Indian. The governing provision is Section 195: TDS rate is 20% plus surcharge and cess — commonly 22–23% of the gross sale consideration, not merely the capital gain. The form is Form 27Q. An NRI seller can apply for a Lower Deduction Certificate under Section 197 to reduce the rate to actual tax on net gains, but the application must be initiated with the Jurisdictional Assessing Officer 6–8 weeks before the anticipated sale deed date. Filing Form 26QB for an NRI seller deducts at the wrong rate and voids the compliance entirely.
When a property is held by multiple co-sellers or purchased by multiple co-buyers, TDS does not consolidate into a single filing. The department’s system tracks PAN-to-PAN transaction pairs: each combination of one buyer PAN and one seller PAN is a separate Form 26QB obligation, with the TDS amount reflecting only the proportionate consideration between that specific pair.
A property sold jointly by two co-owners to two co-buyers generates four Form 26QB filings, four challan deposits, and four Form 16B certificates. Each seller requires their own Form 16B to claim TDS credit in their individual return — a certificate issued under a different PAN combination cannot substitute. Filing a single form that attempts to represent all pairs is among the more common self-filing errors, and one the automated matching system detects and flags within weeks of the registration.
Why the details matter
The self-filing approach
The PJA approach
Form 16B is the seller’s only documentary evidence that TDS was deducted from their sale proceeds. Without it, the seller cannot claim the corresponding credit in their Income Tax Return — and an uncredited TDS deduction can trigger a refund application or, in assessment proceedings, a dispute over whether the deduction was made at all. Issuing Form 16B within the statutory window is the final step in closing a legally complete property transaction; it is not a post-closing courtesy.
Filing Form 26QB for an NRI seller is not a technical error — it deducts 1% when 22% was required and voids the TDS compliance entirely.
Methodology
We verify the property value, seller residency status, stamp duty valuation, and all PAN details before any deduction is made. Where the stamp duty value exceeds the agreement value, we flag the higher base upfront — eliminating underpayment risk before the registry date.
TDS is computed on the higher of agreement value or stamp duty value. We confirm 1% under Section 194-IA for resident sellers, or 20% plus surcharge and cess under Section 195 for NRI sellers — and route the filing to the correct form accordingly.
We file Form 26QB via the TIN-NSDL e-tax payment portal, generate the challan, and confirm deposit within the 30-day statutory window. BSR code and challan serial number are documented and provided for your records.
Within 15 days of deposit, we generate Form 16B from the TRACES portal and issue the TDS certificate to the property seller — the document the seller requires to claim TDS credit in their Income Tax Return.
Scope
Common questions
Explore further
Structured planning for residential and commercial property sales. We model Section 54, 54EC, and 54F exemptions before the deed is signed — eliminating or substantially reducing your capital gains liability.
Learn moreEnd-to-end compliance for non-residents selling Indian property or transferring funds abroad — Lower TDS Certificates under Section 197, Form 15CA/15CB clearance, DTAA relief, and NRI income tax returns.
Learn moreYear-round income tax planning and ITR filing for HNIs, executives, NRIs, and founders — built for zero penalties and maximum after-tax wealth retention.
Learn moreNext step
Book a 30-minute discovery call. We'll scope the engagement, confirm deliverables, and give you a fixed-fee proposal within 48 hours.