TDS on Property Purchase: Buyer and Seller Declaration
Record PANs, residential status, shares and TDS details when buying immovable property worth ₹50 lakh or more.
Law version: Up to FY 2025-26 (Income-tax Act, 1961); Tax Year 2026-27 onwards (Income-tax Act, 2025). Checked on 26 Sep 2026.
What it is
A buyer of immovable property (other than agricultural land) from a resident seller must deduct TDS at 1% when the consideration or the stamp duty value is ₹50 lakh or more. This was Section 194-IA of the Income-tax Act, 1961; from 1 April 2026 it is in Section 393 of the Income-tax Act, 2025. The declaration records the details the buyer relies on: each seller's PAN and residential status, each party's share, the consideration and stamp duty value, and the TDS on each payment.
When it is used
- Buying a flat, house, plot or commercial property of ₹50 lakh or more.
- Paying in instalments to a builder or seller.
- Joint buyers or joint sellers who each need to deduct and report TDS.
What the template covers
- Buyers and sellers with PAN, address and share
- Property details, agreement date, consideration and stamp duty value
- Seller's declaration of residence and PAN
- TDS computation for each payment
- Deposit and certificate timelines
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Document
Date of Declaration; Place
Buyer(s)
Buyers / Transferees: Full Name, PAN, Address, Share in Property (%)
Seller(s)
Sellers / Transferors: Full Name, PAN, Address, Residential Status, Share in Property (%); Are the PANs of all sellers valid and operative (linked with Aadhaar)?
Property
Property Address / Description; Type of Property; Date of Agreement for Sale; Total Consideration (₹); Stamp Duty Value (₹)
Payment
Date of Payment / Credit; Payment Type; Instalment Amount (₹, if part payment)
Stamp duty, registration and filing
TDS is deducted at 1% of the amount paid (or the stamp duty value where higher, in proportion). Without a valid PAN of the seller, the rate is 20%. If the seller is a non-resident, this provision does not apply; tax is deducted under the provisions for payments to non-residents instead. The buyer deposits the tax through a challan-cum-statement within 30 days from the end of the month of deduction and gives the seller a TDS certificate.
Section 194-IA, Form 26QB and Form 16B apply to payments up to 31 March 2026. From 1 April 2026 the deduction is under Section 393(1) of the Income-tax Act, 2025 with the challan-cum-statement and certificate prescribed under the Income-tax Rules, 2026. The provision follows the payment date.
Generate the Property Purchase TDS — Buyer/Seller Declaration & Payment Note (Form 26QB-style)
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. TDS returns, ITR)? Contact SKAG and Associates
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Frequently asked questions
Does the buyer need a TAN to deduct TDS on property?
No. As under the earlier Section 194-IA, a buyer from a resident seller pays the TDS through a PAN-based challan-cum-statement and does not need a TAN.
Is TDS deducted on the full value or each instalment?
On each payment, including instalments to a builder, at 1% of the amount paid.
What if the property is bought from an NRI?
This 1% provision does not apply. TDS is deducted at the rates for non-residents, and the buyer needs a TAN.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.