When you buy immovable property in India, the law may require you — the buyer — to hold back a slice of the price and deposit it with the tax department on the seller's behalf. This calculator gives an indicative figure for that deduction under Section 194-IA for a purchase from a resident seller.
Enter the details
Estimate the TDS to deduct
The full amount agreed for the property (or stamp-duty value, if higher).
TDS to deduct
₹0
Enter the sale consideration above to see the estimate.
Indicative only — verify with us. This figure is a general estimate on the stated rate. The correct deduction depends on the type of property, the exact consideration and stamp-duty value, the number of buyers and sellers, and the seller's status. Please confirm the position before deducting or depositing.
How this works
Section 194-IA puts the compliance burden on the buyer. Where you buy immovable property (other than agricultural land) from a resident and the consideration is ₹50 lakh or more, you deduct 1% of the whole consideration — not just the portion above ₹50 lakh — and pay it to the government against the seller's PAN.
- Below ₹50 lakh: no deduction is required under Section 194-IA.
- ₹50 lakh or more: deduct 1% of the full consideration.
- Seller has no PAN: the rate rises to 20% under Section 206AA.
- Deposit: pay via challan-cum-statement Form 26QB within 30 days from the end of the month in which the deduction is made, and issue Form 16B to the seller.
If the seller is an NRI, this does not apply
Section 194-IA covers only resident sellers. Where the seller is a non-resident, the deduction is governed by Section 195 and is made on the seller's capital gains at the applicable rates (plus surcharge and cess) — which is materially higher than 1% and is computed differently. The ₹50 lakh threshold does not apply. If your seller is an NRI, the amount to be deducted needs proper computation, and often a lower-deduction certificate under Section 197 is worth considering. Please contact us before completing the transaction.
Buying or selling property?
Dixit Legal can review the sale details, confirm the correct TDS, handle the Form 26QB deposit, and advise on the seller's capital-gains position — including the different rules where an NRI is involved.
Discuss your matter on WhatsApp → Or call +91 70809 16305Other calculators