Property TDS Rules 2026 require buyers to deduct 1% tax from the sale price when buying eligible property from a resident Indian seller. It applies when you buy property worth ₹50 lakh or more from a resident Indian seller. For payments made on or after 1 April 2026, you deposit it through Form 141 (Schedule B) within 30 days from the end of the month of deduction. Then you give the seller Form 132 as proof. Older articles call these Form 26QB and Form 16B.
You found the right flat. The price is fixed and the loan is approved. Then the seller says, “Don’t forget the TDS.”
Now you wonder how much to pay, which form to use, and what happens if you are late. Many buyers in Jaipur hear about property TDS only days before registry. That stress is avoidable. This guide explains each step in simple words.
Key Takeaways
- Property TDS is 1% of the full sale price, not just the amount above ₹50 lakh.
- The buyer deducts it and deposits it with the government.
- Use Form 141 (Schedule B) for payments on or after 1 April 2026.
- A TAN is not needed. PAN of buyer and seller is enough.
What Are the Property TDS Rules and Why Do They Apply?
TDS means Tax Deducted at Source. The government collects part of the seller’s tax early. So the buyer keeps 1% of the price and sends it to the tax department.
Under the old law, property TDS came under Section 194-IA. From 1 April 2026, the same rule sits under Section 393(1) of the Income-tax Act, 2025. The section number and forms changed. The 1% rate and ₹50 lakh limit stayed the same.
For the seller, this is not an extra cost. It is advance tax, and they claim credit for it in their income tax return.
Property TDS Rate and Limit in 2026
| Point | What the Rule Says |
| TDS rate | 1% of the sale price |
| Limit | ₹50 lakh or more |
| Who deducts | The buyer |
| Seller type | Resident Indian |
| Section | 393(1) (earlier 194-IA) |
| Form to file | Form 141, Schedule B (earlier 26QB) |
| Certificate for seller | Form 132 (earlier 16B) |
| TAN needed? | No |
Example (for understanding only): Ravi buys a flat for ₹65,00,000. TDS is 1% of ₹65,00,000, which is ₹65,000. Ravi pays ₹64,35,000 to the seller and deposits ₹65,000 with the government. The 1% applies to the full ₹65 lakh.
What Counts as Sale Price?
Under the Property TDS Rules 2026, the sale price can include more than the base cost of the flat. Extra charges that are part of the deal, like parking or club membership, may be added. Check your agreement to see what is included. If you pay in installments, deduct 1% on each payment. This matters for under-construction flats.
When TDS on Property Purchase Does Not Apply
- The total price is below ₹50 lakh.
- The land is rural agricultural land.
- There is no sale, such as a gift or inheritance.
Seller is an NRI? Different rules apply, and the rate is usually higher than 1%. Do not use the resident-seller process. Take expert advice first.
How to Pay Property TDS Online: Step by Step
- Collect PANs. Get the valid PAN of the buyer and the seller.
- Deduct 1%. Do it when you pay or credit the amount.
- File Form 141. Choose Schedule B on the Income Tax portal. Add PANs, property address, price and each owner’s share.
- Pay the tax. Use the payment options on the portal. Save the acknowledgement.
- Download Form 132. Log in to TRACES, download the certificate and give it to the seller within the time limit.
Portal screens can change, so always follow the latest official instructions.
Property TDS Deadline, Interest and Late Fees
The deadline is 30 days from the end of the month in which you deduct tax. If you deduct in September, file by 30 October.
| Mistake | Consequence (at the time of writing) |
| TDS not deducted | Interest of 1% per month |
| Deducted but paid late | Interest of 1.5% per month |
| Late filing | A late fee may also apply |
Check the current amounts on the official portal before you pay.
5 Common Property TDS Mistakes
- Paying the full price first. Deduct TDS before or during payment.
- Wrong seller PAN. With no valid PAN, the TDS rate can go up to 20%.
- Using old forms. Form 26QB is for older payments. Use Form 141 now.
- Missing installments. Deduct TDS on every payment, not only the last one.
- Forgetting Form 132. The seller needs it to see the credit.
Property TDS in Jaipur: What Local Buyers Should Know
In areas like Mansarovar, Jagatpura, Vaishali Nagar, Ajmer Road and Tonk Road, TDS is paid separately from stamp duty and registration charges. Stamp duty goes to the state. TDS goes to the income tax department.
Plan for it before registry day. Our DLC rate in Jaipur guide explains government rates, and property valuation in Jaipur shows how to judge a fair price. Before you sign, read 9 things to check before property buying in Jaipur. Buying a flat? Use our construction quality checklist and the home loan calculator to plan your budget.
FAQ – Property TDS Rules
1. What is property TDS?
It is a 1% tax the buyer deducts from the sale price and deposits with the income tax department. It applies to deals of ₹50 lakh or more with a resident seller.
2. What are the Property TDS Rules in 2026?
The Property TDS Rules 2026 require eligible buyers to deduct tax on qualifying property purchases from resident sellers. The applicable rate and threshold should be checked against the current rules.
3. Is TDS applicable on property below ₹50 lakh?
No. Below ₹50 lakh, the buyer does not deduct TDS.
4. Who pays TDS on property, buyer or seller?
The buyer deducts and deposits it from the seller’s payment. It is the seller’s tax, paid through the buyer.
5. Which form is used for TDS on property in 2026?
For payments on or after 1 April 2026, use Form 141 (Schedule B). Form 26QB was used earlier.
6. What is the last date to pay TDS on property purchase?
Within 30 days from the end of the month of deduction.
7. Is TDS required on agricultural land?
Not on rural agricultural land. Urban agricultural land may be treated differently, so get expert advice.
8. What is Form 132?
It is the TDS certificate that replaced Form 16B. The buyer downloads it from TRACES and gives it to the seller.
Buying a Property in Jaipur? Talk to Us
Buying a home should feel exciting, not confusing. At Hobnob Realtech, we help buyers find verified flats, villas and commercial properties in Jaipur, with support for documentation and registry. Our team can guide you on where to handle property TDS in your buying plan.
Call +91 93514 92360 or contact Hobnob Realtech. Visit us at 1st Floor, 24/66, Sector II, Swarn Path, Shukalpura, Mansarovar, Jaipur.
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Disclaimer: This article is for general information only and is not tax or legal advice. Tax rules can change. Please check the official Income Tax portal or consult a Chartered Accountant before you file.