TDS on property purchase, from a resident or an NRI seller
Buying a flat, house or plot in India makes you responsible for deducting tax from the price. This TDS on property purchase calculator works out how much to hold back, what to pay the seller, and when and how to deposit it — for a resident seller (the old section 194-IA) and for a non-resident (NRI) seller (the old section 195).
From 1 April 2026 both rules sit in section 393 of the Income-tax Act, 2025: 393(1) for residents and 393(2) for non-residents. The figures are the same as before. Results are estimates for planning, not tax advice.
How to use the TDS on Property Purchase Calculator
- Choose Resident seller or NRI / non-resident seller.
- Enter the total sale price, the stamp duty value (resident sellers), the amount you are paying now and your share if you are buying jointly.
- Enter the payment date and whether the seller has given a PAN.
- For an NRI seller, add the date they bought the property, and choose a lower-deduction certificate rate if they have one.
- Read the TDS, the amount to pay the seller, the deposit date and the form. Copy summary keeps them.
TDS on Property Purchase Calculator features
Both kinds of seller
1% for residents above ₹50 lakh, capital-gains rates with surcharge and cess for non-residents.
Stamp duty value rule
TDS is on the higher of the price and the stamp duty value, applied to each instalment.
Joint buyers and instalments
Each buyer deducts on their own share of each payment; the ₹50 lakh limit counts the whole deal.
Long-term or short-term
The more-than-24-months test for land and buildings, using the same engine as the capital gains calculator.
Dates and forms
Form 141 within 30 days of the month end for residents; TAN, 7th-of-next-month deposit and Form 144 for NRIs.
TDS on property purchase from a resident
If the price or the stamp duty value is ₹50 lakh or more, the buyer deducts 1% of the higher of the two — 20% if the seller gives no PAN. The limit is tested on the whole deal, even when there are several buyers or sellers. Agricultural land is excluded. No TAN is needed: you pay with challan-cum-statement Form 141 (formerly 26QB) within 30 days from the end of the month you deducted, then download the TDS certificate for the seller.
Example: a flat sold for ₹75 lakh with a stamp duty value of ₹80 lakh. TDS = 1% × ₹80 lakh = ₹80,000. Paid on 15 October 2026, the TDS is due by 30 November 2026, and the seller receives ₹74,20,000.
TDS on property purchase from an NRI
There is no ₹50 lakh threshold, and without a lower-deduction certificate the buyer deducts on the whole payment, not on the gain. The buyer needs a TAN, deposits by the 7th of the next month (30 April for March) and files quarterly statement Form 144 (formerly 27Q). An NRI seller expecting a much smaller gain can apply to the Assessing Officer for a certificate under section 395 (formerly 197) before the sale; treaty rates may also be lower.
| Holding period and payment | Rate | With surcharge and 4% cess |
|---|---|---|
| Long-term (more than 24 months), up to ₹50 lakh | 12.5% | 13% |
| Long-term, ₹50 lakh to ₹1 crore | 12.5% + 10% | 14.3% |
| Long-term, above ₹1 crore (surcharge capped at 15%) | 12.5% + 15% | 14.95% |
| Short-term (24 months or less), above ₹1 crore | 30% + 15% | 35.88% |
| Short-term, above ₹2 crore | 30% + 25% | 39% |
Common mistakes
- Deducting 1% when the seller is an NRI. The non-resident rules apply, and short-deduction makes the buyer liable for the tax plus interest.
- Ignoring the stamp duty value when it is above the agreed price.
- Paying late: interest is 1% or 1.5% a month and a late form costs ₹200 a day — work it out with the TDS late fee calculator.
- For the seller’s own tax on the gain, use the capital gains tax calculator; for other TDS, the TDS calculator; for the buyer’s registration cost, the stamp duty calculator.
TDS on Property Purchase Calculator FAQ
What is the TDS on property purchase?
1% of the higher of the sale price and the stamp duty value when either is ₹50 lakh or more and the seller is resident in India. The buyer deducts it from each payment and deposits it with Form 141.
Which section covers TDS on property purchase?
Section 194-IA of the Income-tax Act, 1961, which became section 393(1), Table Sl. No. 3(i) of the Income-tax Act, 2025 from 1 April 2026. Purchases from non-residents were section 195 and are now section 393(2).
How much TDS is deducted on property purchase from an NRI?
On a long-term sale, 12.5% plus surcharge (10% above ₹50 lakh, 15% above ₹1 crore) plus 4% cess — 13% to 14.95% of the payment. On a short-term sale, 30% for an individual plus surcharge and cess, unless the seller has a lower-deduction certificate.
Is TDS on property sale deducted on the full amount or only the gain?
For a resident seller, on the price (or stamp value). For an NRI seller, buyers deduct on the whole payment unless the seller produces a certificate fixing a lower amount or rate.
Is TDS deducted on property below ₹50 lakh?
Not from a resident seller. From a non-resident seller, yes — there is no threshold.
Do I need a TAN to buy property?
Not from a resident: Form 141 works with your PAN. Buying from a non-resident, you must get a TAN and file Form 144.