TDS on Purchase of Property — Compliant from Day One.
Buying property above ₹50 lakh? TDS under Section 194IA must be deducted and Form 26QB filed within 30 days. We handle computation, deposit, filing, and certificate issuance end to end.
Contact UsWhen a buyer purchases immovable property — land or building — for a consideration of ₹50 lakh or more, they are required to deduct Tax Deducted at Source at 1% of the sale consideration under Section 194IA of the Income Tax Act, 1961. This obligation applies regardless of whether the buyer is an individual, HUF, company, or firm. Agricultural land is the only significant exemption.
The TDS must be deducted at the time of payment or credit of consideration to the seller, whichever is earlier. This means TDS obligations can arise at the advance payment stage — not just at registration. The deducted tax must be deposited using Form 26QB — a combined challan-cum-statement — within 30 days from the end of the month in which TDS was deducted.
Following successful payment, a TDS certificate in Form 16B must be generated from the TRACES portal and issued to the seller within 15 days. The seller cannot claim credit for the TDS in their ITR unless this process is correctly completed. Errors in Form 26QB — wrong PAN, incorrect consideration amount, or missed instalments — require correction and can delay the seller’s refund or create mismatches.
Our Property TDS Services
TDS Computation
Calculation of the correct TDS amount on the total sale consideration, including treatment of advance payments and staggered instalments.
Form 26QB Filing
Accurate preparation and timely filing of Form 26QB through the TIN-NSDL portal within 30 days of TDS deduction.
Challan Deposit Management
End-to-end management of the TDS challan deposit — correct PAN of buyer and seller, correct amount, and correct assessment year.
Form 16B Generation
Generation of Form 16B TDS certificate from the TRACES portal and issuance to the seller within the 15-day deadline.
Multiple Instalment Handling
Filing of separate Form 26QB for each instalment of consideration where the property is being paid for in tranches.
Correction Statement Filing
Filing of correction requests on TRACES for errors in previously filed Form 26QB — PAN correction, amount correction, and AY correction.
Seller Credit Verification
Confirmation that the TDS deducted is correctly reflected in the seller’s Form 26AS after filing.
Default Resolution
Resolution of late filing fees under Section 234E and interest under Section 201(1A) where deadlines were missed.
Our Process
Transaction Review
We review the sale agreement to identify the total consideration, payment schedule, and applicable TDS obligation under Section 194IA.
TDS Computation
TDS at 1% is computed on the total sale consideration (not just the instalment amount) for each payment.
Form 26QB Filing
Form 26QB is prepared with correct buyer and seller PAN, property details, and consideration amount, and filed within 30 days.
Challan Payment
The TDS amount is paid online via the net banking challan integrated with Form 26QB.
Form 16B Issuance
After the challan appears on TRACES (usually within 5 days), Form 16B is generated and issued to the seller.
Why It Matters
Frequently Asked Questions
Buying property above ₹50 lakh?
TDS deduction and Form 26QB filing are mandatory. We handle computation, filing, and Form 16B issuance — fully compliant, within every deadline.
