When TDS applies
- The property is a flat, house, plot or commercial unit, but not rural agricultural land
- The total consideration, or stamp duty value if higher, is ₹50 lakh or more
- The seller is a resident; for NRI sellers, different and higher TDS rules apply
- TDS is deducted on every instalment paid, including payments to a builder for an under-construction flat
How much to deduct
TDS is 1% of the amount paid. If the seller has not provided PAN, the rate is higher. Where there are multiple buyers or sellers, each buyer files a separate Form 26QB for their share against each seller.
How to pay through Form 26QB
- Log in to the e-filing portal and open the e-pay tax option.
- Select Form 26QB (TDS on sale of property).
- Enter buyer and seller PANs, property details, agreement date, total value and the amount paid in this instalment.
- Pay the TDS online through net banking or other available methods.
- Save the challan and acknowledgement.
Due date
Form 26QB must be filed and TDS paid within 30 days from the end of the month in which the payment was made. For a payment made on 10 March, the due date is 30 April.
Issuing Form 16B to the seller
After the payment is processed, register on TRACES as a taxpayer, request Form 16B and download it. Give it to the seller within the time allowed. The seller uses it to claim credit in their ITR.
What happens if TDS is missed or late
| Default | Consequence |
|---|---|
| TDS not deducted | Buyer may be treated as assessee in default and liable for the TDS amount |
| Late deduction or payment | Interest per month on the amount |
| Late Form 26QB filing | Late fee per day, capped at the TDS amount |
| Form 16B not issued | Penalty may apply |
In Greater Noida West, most flats now cross ₹50 lakh including parking and other charges. Check whether the total consideration, not just the base price, crosses the limit.
Frequently asked questions
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Sources
Information is for general guidance and not a substitute for professional advice. Rules, rates and due dates change; confirm with us before acting.