{"id":367,"date":"2025-07-03T11:16:26","date_gmt":"2025-07-03T11:16:26","guid":{"rendered":"https:\/\/www.cashweta.co.in\/blog\/?p=367"},"modified":"2025-07-03T11:16:26","modified_gmt":"2025-07-03T11:16:26","slug":"tds-on-property-transactions","status":"publish","type":"post","link":"https:\/\/www.cashweta.co.in\/blog\/tds-on-property-transactions\/","title":{"rendered":"Guide to TDS on Property Transactions for Buyers &amp; Sellers"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.cashweta.co.in\/blog\/wp-content\/uploads\/2025\/07\/image.png\" alt=\"\" class=\"wp-image-368\" srcset=\"https:\/\/www.cashweta.co.in\/blog\/wp-content\/uploads\/2025\/07\/image.png 1024w, https:\/\/www.cashweta.co.in\/blog\/wp-content\/uploads\/2025\/07\/image-300x300.png 300w, https:\/\/www.cashweta.co.in\/blog\/wp-content\/uploads\/2025\/07\/image-150x150.png 150w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Introduction<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Buying or selling property in India? Then you need to be aware of <strong>TDS on property transactions<\/strong> as per <strong>Section 194-IA of the Income Tax Act<\/strong>. Whether you&#8217;re an investor, homeowner, or first-time buyer, failing to comply can result in penalties, interest, and even disallowance of deductions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This 2025 guide by <strong>Makwana Sweta &amp; Associates<\/strong>, leading <strong>Chartered Accountants in Mumbai<\/strong>, explains the <strong>TDS implications on property transactions<\/strong>, filing requirements, timelines, and penalties in simple language.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is TDS on Property Transactions?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">TDS stands for <strong>Tax Deducted at Source<\/strong>. As per <strong>Section 194-IA<\/strong>, if you are buying an <strong>immovable property (land or building)<\/strong> worth more than <strong>Rs. 50 lakh<\/strong>, you must deduct <strong>1% TDS<\/strong> on the sale value and deposit it with the government.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Example: If you&#8217;re buying a flat worth Rs. 80 lakh, you must deduct Rs. 80,000 (1%) and pay only Rs. 79.2 lakh to the seller.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Applicability of Section 194-IA<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applies to <strong>all buyers (resident or NRI)<\/strong> purchasing immovable property (excluding agricultural land).<\/li>\n\n\n\n<li>Property value must exceed <strong>Rs. 50 lakh<\/strong>.<\/li>\n\n\n\n<li>The <strong>buyer is responsible<\/strong> for deducting and depositing TDS.<\/li>\n\n\n\n<li>TDS must be deposited even if the payment is made in installments.<\/li>\n\n\n\n<li><strong>No TAN<\/strong> (Tax Deduction Account Number) is required for the buyer.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">How to Pay TDS on Property (Form 26QB)<\/h3>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Visit <a href=\"https:\/\/tinpan.proteantech.in\/\">TIN NSDL<\/a>.<\/li>\n\n\n\n<li>Click on <strong>&#8220;TDS on Property (Form 26QB)&#8221;<\/strong>.<\/li>\n\n\n\n<li>Enter buyer\/seller PAN, property details, amount, and payment mode.<\/li>\n\n\n\n<li>Pay using net banking\/debit card or generate challan for bank payment.<\/li>\n\n\n\n<li>Download the acknowledgment.<\/li>\n<\/ol>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">TDS must be paid <strong>within 30 days<\/strong> from the end of the month in which payment to the seller is made.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">TDS Certificate (Form 16B)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After payment:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The buyer must <strong>download Form 16B<\/strong> from the <strong>TRACES website<\/strong>.<\/li>\n\n\n\n<li>Provide it to the seller as proof of TDS deduction.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Penalties for Non-Compliance<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Interest:<\/strong> 1% per month (for delay in deduction) or 1.5% (for delay in payment)<\/li>\n\n\n\n<li><strong>Penalty:<\/strong> Rs. 200\/day for delay in filing Form 26QB<\/li>\n\n\n\n<li><strong>Prosecution:<\/strong> In extreme cases, imprisonment may apply<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Note: TDS is still required even if <strong>stamp duty value is below Rs. 50 lakh<\/strong> but <strong>agreement value exceeds it<\/strong>.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Key Points for Sellers<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Report the <strong>TDS in your ITR<\/strong> to claim credit.<\/li>\n\n\n\n<li>Match the TDS entries with your <strong>Form 26AS<\/strong>.<\/li>\n\n\n\n<li>Ensure the buyer gives you <strong>Form 16B<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Special Cases<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Joint Buyers\/Sellers:<\/strong> TDS must be deducted proportionately.<\/li>\n\n\n\n<li><strong>Under Construction Property:<\/strong> TDS applies on each installment paid.<\/li>\n\n\n\n<li><strong>NRI Seller:<\/strong> TDS @20% or more (Section 195), not Section 194-IA<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Final Words<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Compliance with <strong>TDS on property transactions<\/strong> is not optional. Missing a step can cost you penalties and tax scrutiny. Whether you&#8217;re a buyer or seller, it is best to consult a <strong>CA in Mumbai<\/strong> like <strong>Makwana Sweta &amp; Associates<\/strong> to ensure proper compliance and documentation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Need Help?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Our expert team assists with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>TDS Form 26QB filing<\/li>\n\n\n\n<li>Form 16B generation<\/li>\n\n\n\n<li>NRI transactions &amp; TDS at higher rates<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><a>Visit Our Site for Tax Consultancy Services<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Outbound:<\/strong> <a href=\"https:\/\/tinpan.proteantech.in\/\">TIN NSDL Portal<\/a> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Buying or selling property in India? Then you need to be aware of TDS on property transactions as per Section 194-IA of the Income Tax Act. Whether you&#8217;re an investor, homeowner, or first-time buyer, failing to comply can result in penalties, interest, and even disallowance of deductions. This 2025 guide by Makwana Sweta &amp; &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,34],"tags":[32,25],"class_list":["post-367","post","type-post","status-publish","format-standard","hentry","category-chartered-accountant","category-tax-consultants","tag-chartered-accountant-in-mumbai","tag-tax-consultants-in-mumbai"],"_links":{"self":[{"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/posts\/367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/comments?post=367"}],"version-history":[{"count":1,"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/posts\/367\/revisions"}],"predecessor-version":[{"id":369,"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/posts\/367\/revisions\/369"}],"wp:attachment":[{"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/media?parent=367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/categories?post=367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashweta.co.in\/blog\/wp-json\/wp\/v2\/tags?post=367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}