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The basic rule
When a resident buys immovable property (other than agricultural land) for ₹50 lakh or more, the buyer deducts 1% TDS on the consideration — or on the stamp-duty value, if that is higher. This was Section 194-IA; from Tax Year 2026-27 it sits in the TDS table of s.194-IA→s.393. The buyer does not need a TAN; PAN of both parties is enough.
How to deposit and report
- Deduct at the time of payment or credit — on each instalment if you pay in parts.
- Pay and report through the challan-cum-statement Form 141 (old Form 26QB) within 30 days from the end of the month of deduction.
- Download the TDS certificate from TRACES and give it to the seller within 15 days of the due date of the statement.
- Use correct PANs and the agreement value — mistakes need a correction later.
If the seller is a non-resident
- The 1% rule does not apply. The buyer must deduct TDS at the capital-gains rate under s.195→s.393 — 12.5% on long-term gains plus surcharge and cess — on the whole sale price unless the seller obtains a lower-deduction certificate.
- The buyer needs a TAN and files the quarterly non-resident statement (Form 144, old 27Q).
- The NRI seller can apply for a lower or nil deduction certificate (old Form 13, now Form 128) before the sale.
If you miss it
- Interest of 1% a month for not deducting and 1.5% a month for late payment after deduction.
- Late fee of ₹200 a day for a late statement, up to the TDS amount.
- The seller's tax credit is delayed, which usually becomes your problem at the registry or in the next instalment.
Stamp duty in Haryana
TDS is separate from stamp duty and registration fee. Estimate all three — stamp duty, registration and TDS — in our Haryana stamp duty calculator, and read the property tax guide.
Frequently asked questions
No. Agricultural land is excluded from the 1% property TDS.
Each buyer deducts on their share of the payment and files a separate Form 141, with the threshold seen on the total consideration.
Founder, VJ & Associates, Jind — Taxation Lawyer & Legal Consultant, backed by the firm's Chartered Accountants, Company Secretaries and Tax Advocates. About the author · vinujaglan.com
General information as on 10 Nov 2026, not advice for your specific case. Laws, rates and dates change — see the disclaimer.
