The 60-second version
Section 194IA requires buyer to deduct 1% TDS on immovable property purchase above ₹50 lakh from resident seller — deposit via Form 26QB, no TAN needed, seller gets Form 16B.
Buyer deducts 194IA at registration — not seller's job
Section 194IA applies when you buy immovable property (other than agricultural land) from a resident seller for consideration above ₹50 lakh.
Deduct 1% of sale consideration or stamp duty value, whichever is higher per Section 50C alignment — deposit through Form 26QB on TIN-NSDL without TAN.
NRI seller lane: property purchase TDS guide if seller is non-resident.
Property purchase TDS matrix
| Section | Rate | Buyer action |
|---|---|---|
| 194IA | 1% | Resident seller > ₹50L |
| 195 | 20%+ | NRI seller — CA cert |
| 194IB | 5% | You as tenant > ₹50k/month rent |
| Stamp duty | State % | Sub-registrar separate |
194IA sequence
Confirm value
Sale or stamp duty > ₹50 lakh.
Seller PAN
Mandatory — no PAN means 20% rate.
Deduct 1%
Before balance payment to seller.
Form 26QB
File and pay within 30 days of deduction.
Form 16B
Download and give seller within 15 days.
Flow
194IA kit
- Seller PAN.
- Sale deed draft.
- 26QB ACK.
- Form 16B PDF.
- Challan receipt.
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Joint buyers
Each buyer files separate 26QB for their share of consideration.
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₹48 lakh property?
Below threshold — no 194IA.
Under-construction?
194IA on each instalment if single payment > ₹50L — verify builder structure.
No seller PAN?
Deduct 20% per Section 206AA — insist on PAN before advance.
NRI seller?
Section 195 with lower-rate certificate — not 194IA.
Form 16B delay?
Seller cannot claim credit until 16B reflects in 26AS.
Agricultural land?
194IA excluded — separate state rules.
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