Section 194IA: TDS on Property Purchase (Buyer’s Compliance Guide)

Property buyers often overlook TDS obligations, leading to heavy penalties.
Section 194IA makes the buyer responsible for deducting TDS while purchasing property.

This WonderTax guide explains everything a buyer must know.

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Applicability of Section 194IA

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TDS Rate Under Section 194IA

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Example: Property Purchase

• Agreement value: ₹80 lakh

TDS = ₹80,000

Buyer pays:

• ₹79,20,000 to seller

• ₹80,000 to government

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Joint Buyers / Sellers

• TDS applies per buyer–seller combination

• Separate Form 26QB for each buyer–seller pair

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Stamp Duty vs Agreement Value

👉 TDS applies on higher of:

• Agreement value

• Stamp duty value

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Form 26QB Filing

• Challan-cum-statement

• Due within 30 days from end of month of payment

• No TAN required

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Form 16B

• Download from TRACES

• Issue to seller within 15 days of Form 26QB filing

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Common Mistakes

• Missing TDS on instalments

• Filing Form 26Q instead of 26QB

• Ignoring stamp duty value

• Delay in filing

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Internal Links (WonderTax)

• Property Tax & Capital Gains
  https://wondertax.in/capital-gains-tax

• TDS Compliance Services
  https://wondertax.in/tds-return-filing

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CTA – WonderTax

👉 Buying property and confused about TDS compliance?

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