What is the TDS rate on property sale?

For resident sellers: 1% TDS under Section 194IA on properties above ₹50 lakh. For NRI sellers: 20% on LTCG and 30% on STCG under Section 195, plus surcharge and cess.

Form 26QB is a challan-cum-statement for TDS on property sale under Section 194IA. Buyer files it online within 30 days of month-end in which TDS is deducted.

Is TDS applicable on property below 50 lakhs?

For resident sellers, TDS is NOT applicable if property value is below ₹50 lakh. For NRI sellers, TDS applies regardless of property value under Section 195.

Property TDS Services

TDS on Sale of Property by NRI & Form 26QB Filing in Dwarka Delhi

Buying property from NRI or Resident seller? TDS deduction is mandatory! Get expert help for Form 26QB filing (1% TDS), NRI property TDS under Section 195 (20-30%), Lower TDS Certificate, and complete compliance. Serving Dwarka, Uttam Nagar, Janakpuri & Delhi NCR.

1% Resident TDS

20-30% NRI TDS

26QB Filing

Form 16B

Get TDS Help TDS Calculator

DwarkaUttam NagarJanakpuriPalamNajafgarh

Property TDS Assistance

26QB Filing & NRI TDS Compliance

TDS Rates

TDS Rates on Property Sale - Resident vs NRI

Different TDS rules apply based on seller's residential status

Resident Seller

Section 194IA - Buyer deducts TDS

of Total Sale Consideration

Section 194IA

Applicable When: Property value > ₹50 Lakh

NRI Seller

Section 195 - Buyer deducts TDS

20-30%

+ Surcharge + 4% Cess on Capital Gains

Section 195

LTCG: 20% | STCG: 30% (+ Surcharge + Cess)

Parameter	Resident Seller (194IA)	NRI Seller (195)
TDS Rate	1% of Sale Value	20-30% + Surcharge + Cess
TDS On	Total Sale Consideration	Capital Gains (not sale value)
Threshold Limit	₹50 Lakh (No TDS below this)	No Threshold - TDS on any amount
Form to File	Form 26QB	Form 27Q (Quarterly TDS Return)
TDS Certificate	Form 16B	Form 16A
Filing Deadline	30 days from month-end	Quarterly (7th of next month)
Lower TDS	Not commonly used	Section 197 certificate available
Repatriation	N/A	15CA/15CB required

Forms

Form 26QB & Form 27Q - Property TDS Filing

Different forms for Resident vs NRI property transactions

FOR RESIDENT SELLERS

Form 26QB

Form 26QB is a challan-cum-statement filed by the buyer when purchasing property from a Resident Indian seller where sale value exceeds ₹50 Lakh.

Who Files: Property Buyer
TDS Rate: 1% of Sale Consideration
Deadline: Within 30 days of month-end
Certificate: Form 16B generated after filing
Payment: Online through NSDL/TIN website

File 26QB Now

FOR NRI SELLERS

Form 27Q

Form 27Q is a quarterly TDS return filed by the buyer when purchasing property from an NRI seller. More complex than 26QB with higher TDS rates.

Who Files: Property Buyer (as deductor)
TDS Rate: 20% LTCG / 30% STCG + Cess
Deadline: Quarterly (31st July, Oct, Jan, May)
Certificate: Form 16A to NRI seller
TAN Required: Buyer needs TAN

NRI TDS Help

NRI Process

NRI Property Sale - Complete TDS Process

Step-by-step guide for TDS compliance when selling property as NRI

TDS Deduction Process

Sale Agreement

Execute sale agreement. Buyer identifies NRI status of seller based on PAN/documents.

Capital Gains Calculation

Calculate LTCG/STCG with indexation. This determines TDS amount (not sale value).

TDS Deduction

Buyer deducts 20% (LTCG) or 30% (STCG) + Surcharge + 4% Cess at payment time.

TDS Deposit

Deposit TDS within 7 days of month-end using Challan 281.

Form 27Q & 16A

File quarterly return. Issue Form 16A to NRI seller for their ITR filing.

Important for NRI Sellers

TDS is on Capital Gains, not full sale value
Apply for Lower TDS Certificate u/s 197 to reduce TDS
File ITR in India to claim refund of excess TDS
Repatriation requires Form 15CA/15CB
Keep documents for 6 years minimum

Lower TDS Certificate (Section 197)

NRI sellers can apply for a Nil or Lower TDS certificate from Income Tax Department. This is useful when:

Actual capital gains are lower than estimated
Claiming exemption u/s 54, 54EC, 54F
Losses to set off against gains

Apply for Lower TDS

TDS Deposit Deadline

7 Days

From end of month in which TDS deducted

Pricing

Property TDS Services in Dwarka Delhi

Complete TDS compliance for property transactions

Form 26QB Filing

Resident seller (Section 194IA)

₹999₹1,999

Per transaction

26QB Form Preparation
Online Filing
TDS Payment Assistance
Form 16B Download
Acknowledgment

File 26QB

NRI Property TDS

Complete NRI seller compliance

₹7,999₹14,999

Per property

Capital Gains Calculation
TDS Rate Determination
Form 27Q Filing
Form 16A Issuance
15CA/15CB for Repatriation
ITR Filing Support

Best for NRI

Lower TDS Certificate

Section 197 application

₹4,999₹9,999

Per application

Eligibility Analysis
Capital Gains Computation
Form 13 Application
IT Department Follow-up
Certificate Procurement

Apply Now

FAQs

TDS on Property Sale FAQs - Dwarka Delhi

For Resident Indian sellers, TDS is 1% of the sale consideration under Section 194IA. This applies only when property value exceeds ₹50 Lakh. The buyer is responsible for deducting and depositing TDS. Form 26QB must be filed within 30 days of month-end. If property is below ₹50 Lakh, no TDS is required for resident sellers.

For NRI sellers, TDS under Section 195 is: LTCG (Long Term): 20% + applicable surcharge + 4% cess. STCG (Short Term): 30% + surcharge + 4% cess. Important: TDS is calculated on Capital Gains, not the full sale value. There's no threshold limit - TDS applies regardless of property value. NRI seller can apply for Lower TDS Certificate under Section 197.

Form 26QB is a challan-cum-statement for TDS on property purchase from Resident sellers. Filing process: (1) Visit NSDL/TIN website. (2) Select Form 26QB. (3) Enter buyer, seller, property details. (4) Calculate 1% TDS. (5) Pay online via net banking. (6) Download acknowledgment. Deadline: 30 days from end of month in which TDS deducted. After payment, Form 16B can be downloaded from TRACES portal to give to seller.

For Resident sellers: No TDS if property value is below ₹50 Lakh. The ₹50 Lakh threshold is per transaction. For NRI sellers: TDS is applicable regardless of property value - there's no threshold. Even if NRI sells property for ₹10 Lakh, buyer must deduct TDS under Section 195. This is a key difference between Resident and NRI property sales.

NRI sellers can reduce TDS through: (1) Lower TDS Certificate (Section 197): Apply to IT department showing actual capital gains is lower. (2) Claim exemptions: Under Section 54 (reinvestment in residential property), 54EC (bonds), 54F. (3) DTAA benefits: If country has tax treaty with India. (4) Proper cost indexation: Correct calculation reduces taxable gains. We help NRIs in USA, UK, Canada, UAE get lower TDS certificates. Process takes 15-30 days.

Consequences of non-compliance: (1) Interest u/s 201(1A): 1% per month for delay in deduction, 1.5% per month for delay in deposit. (2) Penalty u/s 271C: Equal to TDS amount not deducted. (3) Disallowance: 30% of payment disallowed as expense. (4) Prosecution: In severe cases. The buyer is liable for TDS compliance, not the seller. Always ensure TDS is deducted before making payment to seller.

NRI repatriation process: (1) Receive sale proceeds in NRO account (after TDS). (2) Obtain Form 15CB from CA certifying tax compliance. (3) File Form 15CA online. (4) Submit to bank with documents. (5) Bank processes repatriation to foreign account. Documents needed: Sale deed, TDS certificate, CA certificate, ITR acknowledgment. Limit: Up to $1 million per financial year. We provide complete repatriation assistance from our Dwarka office.

Form 16B: TDS certificate issued to Resident seller after Form 26QB filing. Downloaded from TRACES portal. Seller uses it for ITR filing. Form 16A: TDS certificate issued to NRI seller after Form 27Q filing. Buyer generates it quarterly. Contains details of TDS deducted. Both certificates are essential for sellers to claim TDS credit in their income tax returns. Timeline: 16B within 15 days of 26QB filing, 16A quarterly.