TDS on Buying Property in 2026 (Form 26QB): Rate, Threshold and How to Pay
Buying a house or a plot? There is one tax step many buyers miss — and it can lead to notices and penalties later. When you buy property above a certain value, you (the buyer) must deduct TDS and deposit it with the government using Form 26QB. Here is exactly how it works in 2026.
When does TDS on property apply?
If you buy any immovable property (other than agricultural land) where the sale value is ₹50 lakh or more, you must deduct TDS. The threshold looks at the property value, not just your share — so even joint buyers are covered.
How much TDS do you deduct?
The rate is 1% of the sale consideration (or the stamp duty value, whichever is higher). Important: if the seller does not provide a valid PAN, the rate jumps to 20% — so always collect the seller's PAN before you pay.
What is Form 26QB?
Form 26QB is the combined challan-cum-statement you use to report and pay this TDS. It is filed online, one form per buyer-seller pair. If there are two buyers and one seller, you file two 26QBs.
How to pay TDS on property (step by step)
- Go to the Income Tax e-filing / TIN portal and open Form 26QB under e-Pay Tax.
- Enter the buyer and seller PAN, property details, sale value and date.
- Pay the 1% TDS online or generate a challan to pay at your bank.
- Within a few days, download Form 16B from TRACES and give it to the seller as proof of TDS.
Deadlines and penalties
- Deposit deadline: within 30 days from the end of the month in which you deducted the TDS.
- Late deduction/payment: interest of 1% to 1.5% per month.
- Late filing of 26QB: a late fee of ₹200 per day until you file.
Buying from an NRI seller? It is different
If the seller is a non-resident (NRI), TDS is not 1% under 26QB — it is deducted at higher capital gains rates under a different section (Form 27Q), and you need a TAN. This is a common and costly mistake, so confirm the seller's residential status before you pay.
Buying property is a big step — get the TDS right the first time. We handle 26QB filing, Form 16B, and NRI property TDS for buyers across Gujarat. Gadhia Associate has served 7,000+ clients since 2007 — first consultation free. Visit our Income Tax services page or call +91 82005 28355.
FAQs
Who deducts TDS on property — buyer or seller?
The buyer deducts 1% TDS and deposits it using Form 26QB. The seller then claims credit for it.
Is TDS applicable below ₹50 lakh?
No. TDS under Section 194-IA applies only when the property value is ₹50 lakh or more.
What if I am buying from an NRI?
Different rules apply — TDS is deducted at capital gains rates under Section 195 (Form 27Q), not 1% under 26QB, and you need a TAN. Get it checked before paying.
