What is tds on property? a complete guide by maa shakti

When you're planning to buy a home, you often think about location, size, or interior design—but one key detail buyers overlook is TDS on property. At Maa Shakti, we help property buyers stay informed about all legal and financial aspects of home ownership. So, what is TDS on property, and why is it important? Let’s break it down in a simple, step-by-step guide.

What is TDS on Property?

TDS (Tax Deducted at Source) is a tax you must deduct when buying any immovable property (excluding agricultural land) valued at ₹50 lakhs or more. According to Section 194-IA of the Income Tax Act, the buyer has to deduct 1% TDS on the total sale value and deposit it with the government.

For example, if you're purchasing a property worth ₹80 lakhs, you’ll pay ₹79.2 lakhs to the seller and ₹80,000 as TDS.

Documents Required for TDS Deduction on Property

Before making the payment, ensure you have the following documents ready:

• PAN card of buyer and seller (mandatory)
• Property sale deed or agreement
• Form 26QB (TDS payment form)
• Bank account details for payment
• Valid ID and address proofs
• Contact information of both parties
   

At Maa Shakti, we always advise verifying PAN details carefully—errors can lead to a 20% deduction instead of 1%.

How to Pay TDS on Property

Here’s how you can pay TDS online with ease:

1. Go to https://www.tin-nsdl.com

2. Click on e-payment: TDS on Sale of Property (Form 26QB)

3. Fill in buyer/seller details, property value, and PAN info

4. Choose your payment mode (online/offline)

5. Make a payment and save the acknowledgment receipt
 

Once done, download Form 16B (TDS certificate for property sale) from the TRACES portal to give to the seller as proof.

TDS Filing for Property Transactions

After paying, the buyer must issue the TDS certificate for property sale—that is, Form 16B—within 15 days of payment. You can download it from the TRACES website.

At Maa Shakti, we help our clients stay on track with all timelines to avoid penalties and make the process seamless.

TDS Rules for Property Buyers

• TDS applies when the property value is ≥ ₹50 lakhs
• The buyer is legally responsible for the deduction and payment
• PAN must be correct for both parties
• Use Form 26QB for payment, and Form 16B as a certificate
  Late filing can lead to interest or penalty charges
   

Q&A

Q: What happens if TDS is not deducted during property purchase?
A: You may face a penalty, interest, or even prosecution. The Income Tax Department holds the buyer responsible for compliance. Don’t risk it—Maa Shakti can handle this for you.

Q: Is net banking the only way to pay TDS?
A: No. You can generate Form 26QB online and submit the challan offline at authorized bank branches. Maa Shakti also assists with both options based on your convenience.

Q: Can TDS be paid in installments if I’m making staged payments to the seller?
A: Yes, TDS must be deducted and paid proportionally with each installment. You’ll need to file a separate Form 26QB for each payment made.

Q: What if there are multiple buyers or sellers involved in the transaction?

A: In that case, each buyer-seller combination is treated as a separate transaction. You must file an individual Form 26QB for every combination, even if it's a joint purchase.

Conclusion

Buying a property isn’t just about finding the perfect space—it’s about being financially and legally prepared. Understanding TDS on property ensures you’re making a compliant, smart investment. From documents required for TDS deduction on property to TDS filing for property transactions, every detail counts.

At Maa Shakti, we’re not just real estate advisors—we’re your partners in making every step of the journey smooth, secure, and stress-free. Need help with TDS or property compliance? We’re just a call away.