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TDS on Property Sale Calculator

TDS the buyer must deduct on a property purchase. It is computed on the higher of the price and the stamp duty value, and the obligation sits with the buyer, which catches first-time purchasers.

Also called: tds 194ia, property purchase tds.

₹
₹
%
₹
%
TDS the buyer must deduct
₹80,000

₹80,000 at 1% on ₹80,00,000. The value is at or above the threshold, so deduction applies. The buyer deducts and deposits it, not the seller.

Amount TDS is computed on
₹80,00,000
Net paid to the seller
₹79,20,000
Rate applied
1%
Whether it applies
The value is at or above the threshold, so deduction applies.
How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

The buyer withholds a percentage of the payment and deposits it against the seller's liability. Two details matter. The base is the higher of the agreed price and the stamp duty value, which stops a below-value agreement reducing the deduction. And a non-resident seller attracts a far higher rate under a different section, with surcharge and cess on top, which is the most expensive mistake a buyer can make in this transaction.

TDS on property = the higher of consideration and stamp duty value, times the rate
C
Sale consideration (currency)
S
Stamp duty value (currency)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a resident sale above the threshold

Sale consideration
₹80,00,000
Stamp duty value
₹80,00,000
TDS rate
1%
Threshold
₹50,00,000
The seller is a non-resident
No
Rate for a non-resident seller
20%

TDS the buyer must deduct₹80,000

arithmetic identity

Open this example

a higher stamp duty value becomes the base

Sale consideration
₹80,00,000
Stamp duty value
₹90,00,000
TDS rate
1%
Threshold
₹50,00,000
The seller is a non-resident
No
Rate for a non-resident seller
20%

TDS the buyer must deduct₹90,000

boundary: the anti-avoidance rule

Open this example

below the threshold nothing is deducted

Sale consideration
₹40,00,000
Stamp duty value
₹40,00,000
TDS rate
1%
Threshold
₹50,00,000
The seller is a non-resident
No
Rate for a non-resident seller
20%

TDS the buyer must deduct₹0

degenerate case

Open this example

Method and limits

What it assumes

  • An immovable property other than agricultural land.

What it deliberately does not model

  • The non-resident case carries surcharge and cess that are not applied here, and often needs a lower-deduction certificate.
  • Instalment payments require deduction on each instalment, which is a timing question this does not model.

Sources

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Who is responsible for depositing it?
The buyer. The obligation, the filing and the penalty for failure all sit with the purchaser, not the seller.
What if the seller is an NRI?
A different section applies at a much higher rate, with surcharge and cess. Deducting the resident rate on a non-resident sale is a costly error and it is the buyer who carries it.