If you are purchasing immovable property (land, building, or flat) in India for more than ₹50 lakhs, you are legally required to deduct TDS at 1% of the sale consideration and deposit it with the Income Tax Department. This guide walks you through the entire process of paying TDS using Form 26QB on the official Income Tax portal.
📌 Quick Summary:
Threshold: Property value exceeds ₹50 lakhs
TDS Rate: 1% of sale consideration (or stamp duty value, whichever is higher)
Form: 26QB
Due Date: Within 30 days from the end of the month in which TDS is deducted
Portal: https://www.incometax.gov.in
1. When is TDS Applicable on Property Purchase?
Under Section 194-IA of the Income Tax Act, 1961, TDS is applicable when:
| Condition | Requirement |
|---|---|
| Property Type | Any immovable property (other than agricultural land) |
| Transaction Value | Sale consideration or Stamp Duty Value exceeds ₹50 lakhs (whichever is higher) |
| Seller’s Residency | Seller must be a Resident of India (for NRI sellers, Section 195 applies with higher TDS) |
| TDS Rate | 1% of the total sale consideration or stamp duty value, whichever is higher |
| Deductor | The Buyer (whether individual, HUF, company, etc.) |
⚠️ Important: If the Seller does not provide their PAN to the Buyer, TDS must be deducted at 20% instead of 1%.
2. Documents Required Before Filing Form 26QB
Keep the following information handy before you begin the online filing process:
Buyer’s Details:
PAN Card, Full Name (as per PAN), Complete Address, Email ID, Mobile Number, and Category (Individual/HUF/Company/etc.)
Seller’s Details:
PAN Card, Full Name (as per PAN), Complete Address, Email ID, and Mobile Number
Property Details:
Complete Address of the Property, Type of Property (Land/Building/Flat), Date of Agreement/Booking, Date of Payment, Total Sale Consideration, Stamp Duty Value (from the registered document), and whether there are multiple buyers/sellers
Payment Details:
Mode of Payment (Instalment or Lump sum), Amount Paid/Credited, and TDS Amount (1% of consideration)
3. Step-by-Step Process to Pay TDS Using Form 26QB
Step 1: Visit the Income Tax e-Filing Portal
Open your web browser and go to the official Income Tax e-Filing portal:
You do NOT need to be registered or logged in to file Form 26QB. It can be filed by any buyer without prior registration.
Step 2: Navigate to e-Pay Tax Section
On the homepage, look for the “Quick Links” section on the left side of the page.
Click on “e-Pay Tax”.
Alternatively, you can directly visit:
Then click on “e-Pay Tax” from the menu.
Step 3: Enter PAN and Mobile Number
On the e-Pay Tax page:
Enter the Buyer’s PAN (the person making the payment/deducting TDS).
Confirm the PAN by entering it again.
Enter your Mobile Number for OTP verification.
Click “Continue”.
You will receive an OTP on your mobile. Enter the OTP to proceed.
Step 4: Select the Correct Tax Payment Category
After OTP verification, you will see various tax payment options.
Select: “26QB (TDS on Sale of Property)”
Click “Proceed”.
✅ Note: Form 26QB is specifically for TDS on purchase of immovable property under Section 194-IA. Do not confuse it with Form 26QC (TDS on Rent) or Form 26QD (TDS under Section 194M).
Step 5: Fill in Property Transaction Details
You will now see the Form 26QB online form. Fill in the following sections carefully:
Section A: Information About Transferee (Buyer)
PAN of Buyer (auto-populated), Name, Category (Individual/HUF/Company), Full Address with PIN Code, Email ID, and Mobile Number.
Section B: Information About Transferor (Seller)
PAN of Seller (verify this carefully – incorrect PAN will cause issues), Name of Seller, Full Address with PIN Code, Email ID, and Mobile Number.
Section C: Property Details
Complete Address of the Property Being Transferred, Type of Property (select from dropdown: Flat, Land, Building, etc.), Date of Agreement/Booking (as per the agreement), and Date of Payment.
Section D: Amount Details
Total Value of Consideration (Sale Price), Stamp Duty Value of Property, Payment Type: Lump Sum or Instalment, Amount Paid/Credited in this transaction, TDS Amount (system calculates 1% automatically), and whether Seller has provided PAN (if No, TDS will be 20%).
⚠️ Critical Point on Stamp Duty Value:
From April 2022, if the Stamp Duty Value is higher than the actual sale consideration, TDS must be calculated on the Stamp Duty Value. Ensure you enter correct figures.
Step 6: Verify Details and Calculate TDS
Once you have filled all details, the system will automatically calculate the TDS amount along with any applicable interest (if payment is delayed).
Interest Calculation:
If you are paying after the due date, interest under Section 201(1A) is applicable at 1% per month for late deduction of TDS and 1.5% per month for late payment of TDS (after deduction).
Review all details carefully. Any error in PAN, name, or amount can create problems in TDS credit for the seller.
Click “Continue” after verification.
Step 7: Choose Payment Method
You will be redirected to the payment gateway. Choose one of the following payment methods:
Net Banking: Select your bank from the list of authorized banks. You will be redirected to your bank’s net banking portal. Complete the payment using your bank credentials.
Debit Card: Enter your debit card details. Complete 2-factor authentication.
Pay at Bank Counter (Offline): Generate a challan with a unique CIN (Challan Identification Number). Visit the bank within the validity period. Pay at the counter using cash/cheque/DD.
NEFT/RTGS: Select this option if you want to pay through NEFT/RTGS. Note down the unique details and initiate payment from your bank.
Step 8: Complete Payment and Save Acknowledgement
After successful payment, you will receive a confirmation on screen with the Challan Identification Number (CIN) and Acknowledgement Number.
Download and Save:
Download the acknowledgement receipt immediately. Save/Print the challan for your records. This serves as proof of TDS payment.
✅ Success! You have successfully paid TDS on property purchase. The next step is to download Form 16B (TDS Certificate) to provide to the Seller.
4. How to Download Form 16B (TDS Certificate for Seller)
After paying TDS, you must provide Form 16B to the Seller as proof of TDS deduction. This can be downloaded from the TRACES portal after 10-15 days of payment.
Step 1: Register on TRACES Portal (If Not Already Registered)
Visit the TRACES website:
Click on “Register as Taxpayer” if you are not already registered.
Select User Type as “Taxpayer”.
Enter your PAN, Date of Birth/Incorporation, and verify using details from Form 26QB.
Complete registration with email and mobile verification.
Step 2: Login to TRACES
After registration, login to TRACES using your User ID (PAN) and Password.
Complete captcha verification.
Step 3: Request Form 16B
After logging in, go to: Downloads → Form 16B (For Buyer)
Enter the following details: Assessment Year, Acknowledgement Number (from Form 26QB filing), and PAN of Seller.
Click “Proceed”.
The request will be submitted and Form 16B will be available for download within 24-48 hours.
Step 4: Download Form 16B
Go to: Downloads → Requested Downloads
Find your Form 16B request and click “Download”.
The Form 16B will be downloaded as a PDF file with a digital signature.
Provide this Form 16B to the Seller for their income tax records.
5. Key Due Dates and Penalties
| Compliance | Due Date | Penalty for Non-Compliance |
|---|---|---|
| Deduction of TDS | At the time of payment to seller or credit, whichever is earlier | Interest @ 1% per month under Section 201(1A) |
| Payment of TDS (Form 26QB) | Within 30 days from the end of the month in which TDS was deducted | Interest @ 1.5% per month under Section 201(1A) |
| Issue of Form 16B to Seller | Within 15 days from the due date of filing Form 26QB | Penalty of ₹100 per day under Section 272A(2)(g) |
⚠️ Late Filing Penalty: Apart from interest, a late filing fee under Section 234E of ₹200 per day (subject to maximum of TDS amount) may also be applicable for delayed filing of Form 26QB.
6. Multiple Buyers or Multiple Sellers – How to Handle?
If there are multiple buyers or multiple sellers in a property transaction, each buyer-seller combination requires a separate Form 26QB.
Example: If 2 Buyers are purchasing from 2 Sellers, and each has 50% share, you need to file 4 Form 26QBs (Buyer 1 → Seller 1, Buyer 1 → Seller 2, Buyer 2 → Seller 1, Buyer 2 → Seller 2). Each Form 26QB will show proportionate consideration and TDS.
7. Frequently Asked Questions (FAQs)
Q1: Is TDS applicable if property value is exactly ₹50 lakhs?
No. TDS is applicable only if the property value exceeds ₹50 lakhs. At exactly ₹50 lakhs, no TDS is required.
Q2: What if the Seller is an NRI?
If the Seller is a Non-Resident Indian (NRI), Section 194-IA does not apply. Instead, TDS must be deducted under Section 195 at rates of 20% (Long-Term Capital Gains) or 30% (Short-Term Capital Gains) depending on the holding period. The Buyer should also apply for a TAN in such cases.
Q3: Do I need a TAN to pay TDS under Section 194-IA?
No. Unlike regular TDS provisions, the Buyer does not need to obtain a TAN (Tax Deduction Account Number) for TDS under Section 194-IA. The transaction is tracked using PANs of both parties.
Q4: I paid TDS but entered wrong details. What should I do?
You can file a correction request on the TRACES portal. Login to TRACES, go to “Request for Correction” and submit the correction with supporting documents. This may take some time to process.
Q5: Is TDS applicable on agricultural land?
No. Agricultural land (as defined under Section 2(14) of the Income Tax Act) is not considered a capital asset for the purpose of Section 194-IA, so TDS is not applicable.
Q6: What if I make part payments over several months?
You must file a separate Form 26QB for each payment/instalment. TDS at 1% must be deducted and deposited for each payment separately.
Q7: How can the Seller verify if TDS has been deposited?
The Seller can verify TDS credit in their Form 26AS or Annual Information Statement (AIS) on the Income Tax portal. The TDS will reflect within 10-15 days of payment.
8. Important Links and Resources
| Purpose | Website |
|---|---|
| Income Tax e-Filing Portal | https://www.incometax.gov.in |
| e-Pay Tax (Direct Link) | https://www.incometax.gov.in/iec/foportal/ |
| TRACES Portal (Form 16B Download) | https://www.tdscpc.gov.in |
| Check Form 26AS | Login → e-File → View Form 26AS |
| Know Your AO (Assessing Officer) | https://www.incometax.gov.in/iec/foportal/help/know-your-ao |
Conclusion
Paying TDS on property purchase is a straightforward process if you follow the steps carefully. Always ensure that you have the correct PAN details of the Seller, file Form 26QB within the due date, and provide Form 16B to the Seller promptly. Keeping proper documentation of the entire process will help avoid any issues during scrutiny or when the Seller files their income tax return.
If you have purchased property and need assistance with TDS compliance or any other legal documentation, consulting with a qualified legal professional is advisable to ensure full compliance with the law.
Disclaimer: This guide is for informational purposes only and should not be construed as legal or tax advice. Tax laws are subject to change, and you should verify current provisions with a qualified professional or the official Income Tax Department website before taking any action. Last updated: 2024-25.
