TDS on Property Calculator
How much tax you must cut from the price when you buy a flat, house or plot, for a resident or an NRI seller, under the Income-tax Act, 2025.
Buying from a resident, you cut 1% of the price or the stamp duty value, whichever is higher, once either is ₹50 lakh or more: a ₹75 lakh flat with an ₹80 lakh stamp duty value means ₹80,000 of TDS. Buying from an NRI, the rate is 12.5% of the price for a property held over two years, plus surcharge and cess: ₹17,94,000 on ₹1.2 crore, unless the seller has a lower-deduction certificate.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Stamp duty value
- The value the state government puts on a property for stamp duty, from its circle rate or ready reckoner. It is on the registration papers and can be higher than the price you agreed.
- TDS threshold
- The amount a payment must cross before any TDS is cut. Once it is crossed, TDS is cut on the whole amount, not only the part above it: ₹60,000 of FD interest loses ₹6,000, not ₹1,000.
- TDS without a PAN
- If you don't give the payer your PAN (your 10-character tax ID), TDS is cut at 20% or the normal rate, whichever is higher. Giving your PAN brings it back to the normal rate.
- Form 141
- The online form an individual uses to pay TDS on rent, a property purchase, crypto or large contract payments, without needing a TAN. It replaced Forms 26QB, 26QC, 26QD and 26QE.
- TDS for an NRI seller
- When the seller does not live in India, the buyer cuts tax at the rate for the seller's capital gain (12.5% for a property held over 24 months, 30% otherwise), plus surcharge and 4% cess, instead of 1%.
- Lower-deduction certificate
- A certificate from the Assessing Officer (section 395) letting the payer cut TDS at a lower rate or none, because the payee's real tax is lower than the TDS would be.
When you buy a property, part of the seller's income tax is collected by you: you cut it from the price and pay it to the government with Form 141 (it replaced Form 26QB from 1 April 2026). How much depends on whether the seller lives in India. Enter the price and the stamp duty value from the registration papers to see the TDS and what you pay the seller.
Seller lives in India: the 1% rule
TDS is 1% of the price or the stamp duty value, whichever is higher. It applies when either is ₹50 lakh or more, and only to buildings and non-agricultural land. Without the seller's PAN the rate is 20%. You need no TAN: the TDS is paid with Form 141 on the income-tax e-filing site, using your PAN and the seller's.
| Price | Stamp duty value | TDS | You pay the seller |
|---|---|---|---|
| ₹75.00 lakh | ₹80.00 lakh | ₹80,000 | ₹74,20,000 |
| ₹45.00 lakh | ₹52.00 lakh | ₹52,000 | ₹44,48,000 |
| ₹40.00 lakh | ₹45.00 lakh | none | ₹40,00,000 |
The second row is the trap: the price is under ₹50 lakh, but the stamp duty value is above it, so TDS applies.
Joint buyers or sellers
The ₹50 lakh test is on the whole property: all buyers together, paying all sellers. Each buyer then cuts 1% of their own share. Two buyers splitting an ₹80 lakh flat equally each cut ₹40,000, although each pays only ₹40 lakh.
Seller is an NRI
The 1% rule does not apply. The buyer cuts tax at the rate for the seller's capital gain: 12.5% for a property held more than 24 months, 30% otherwise, plus surcharge (10% of the tax above ₹50 lakh, 15% above ₹1 crore, and for a short holding 25% above ₹2 crore and 37% above ₹5 crore) and 4% cess. The calculator applies it to the whole price, which is what buyers do unless the seller shows a certificate for a lower rate.
| ₹1.2 crore sale by an NRI | Rate with surcharge and cess | TDS |
|---|---|---|
| Held over 24 months | 14.95% | ₹17,94,000 |
| Held 24 months or less | 35.88% | ₹43,05,600 |
Because the tax is on the gain, not the price, the seller can apply to the Assessing Officer (section 395) for a certificate to cut TDS at a lower rate, or get the excess back as a refund after filing a return.
Paying late
Interest is 1% a month (or part of a month) if you cut the TDS late, and 1.5% a month from cutting it to paying it (section 398(3)). Filing the statement late costs ₹200 a day, up to the TDS amount (section 427). The portal shows the due date when you file Form 141.
Key takeaways
- Resident seller: 1% of the higher of price and stamp duty value, once either reaches ₹50 lakh.
- NRI seller: 12.5% (held over two years) or 30%, plus surcharge and cess, on the price unless a certificate lowers it.
- Joint buyers test ₹50 lakh on the whole property, then each cuts TDS on their own share.
- Pay late and interest runs at 1.5% a month; file late and the fee is ₹200 a day.
Frequently asked questions
What is the TDS on purchase of property?
1% of the price or the stamp duty value, whichever is higher, when either is ₹50 lakh or more and the seller is resident in India. Agricultural land is exempt.
Is Form 26QB still used?
From 1 April 2026, under the Income-tax Act, 2025, the TDS is paid with Form 141, which replaced Form 26QB. Payments before then were made under the old section 194-IA.
What is the TDS when buying property from an NRI?
12.5% of the price for a property held over 24 months (30% otherwise), plus surcharge and 4% cess. On ₹1.2 crore that is ₹17,94,000, unless the seller gives a lower-deduction certificate.
Does TDS apply if the price is below ₹50 lakh?
Yes, if the stamp duty value is ₹50 lakh or more. TDS is then 1% of the stamp duty value.
What happens if I pay the TDS late?
Interest of 1.5% a month or part of a month from the date you cut it until you pay it, and a fee of ₹200 a day for a late statement, capped at the TDS.