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For individualsRates reviewed September 2026

TDS on Property Purchase and Rent Calculator: 194-IA and 194-IB

This calculator covers the two deductions an ordinary individual is most likely to face without holding a TAN: tax on the purchase of immovable property, which people know as section 194-IA, and tax on rent paid by an individual or HUF who is not liable to tax audit, section 194-IB. From 1 April 2026 both sit as entries in the section 393 tables of the Income-tax Act, 2025, with the rates and thresholds carried forward unchanged for FY 2026-27 (AY 2027-28).

On a property purchase the buyer deducts 1% where the consideration or the stamp duty value is ₹50 lakh or more, and deducts it on the higher of the two figures. The test runs on the whole property, since the consideration is the aggregate paid or payable by all the buyers to all the sellers, so a flat bought jointly by two people for ₹80 lakh does not become two ₹40 lakh purchases. Agricultural land is outside the provision, and the seller must be a resident.

On rent, an individual or HUF not liable to audit deducts 2% once the rent exceeds ₹50,000 for a month or part of a month. The rate was 5% until 30 September 2024 and fell to 2% for deductions from 1 October 2024 under the Finance (No. 2) Act, 2024. Tax is deducted only once a year, with the rent for the last month of the tax year or the last month of tenancy, on the whole rent for the year. Where the landlord has no PAN the rate rises to 20%, but the deduction cannot exceed the rent for that last month.

Both deductions are reported on a challan-cum-statement rather than through a quarterly TDS return. For payments from 1 April 2026 that is Form 141, with Schedule B for property and Schedule A for rent, replacing Forms 26QB and 26QC. It is filed with the deductor's PAN, no TAN is needed, and the tax has to be paid within 30 days from the end of the month in which it was deducted.

TDS on Property & Rent Calculator

The total price for the property, across all buyers and all sellers.

₹

The value adopted by the registration authority. TDS runs on the higher of the two.

₹

The threshold is tested on the whole property, not on each buyer's share.

Seller has furnished a PAN

Without a PAN the rate is 20% under section 397(2), earlier 206AA.

Whichever is earlier. It fixes the Form 141 due date.

TDS to deduct on the purchase

₹75,000

1% on ₹75,00,000, the higher of the consideration and the stamp duty value

ProvisionIncome-tax Act, 2025 provision and the 1961 Act number
393 / 194-IA
Agreed considerationAggregate paid or payable by all buyers to all sellers
₹72,00,000
Stamp duty valueHigher than the consideration, so TDS runs on this figure
₹75,00,000
TDS applies₹75,00,000 is ₹50,00,000 or more
Yes
Amount on which TDS is deductedHigher of the consideration and the stamp duty value
₹75,00,000
Rate appliedSeller PAN furnished
1%
TDS to deduct
₹75,000
Net payable to the seller₹72,00,000 less ₹75,000
₹71,25,000
FormChallan-cum-statement filed with the buyer's PAN, no TAN needed
Form 141, Schedule B (earlier Form 26QB)
Due date30 days from the end of July 2026
30 Aug 2026
  • The ₹50 lakh test is applied to the whole property: the consideration is the aggregate paid or payable by all the buyers to all the sellers, so splitting the price between co-owners does not take the transaction below the line.
  • Agricultural land is outside the provision. Where the payment is under a specified agreement, such as a joint development agreement, a different entry of the section 393 table applies.
  • Deduct at credit or payment, whichever is earlier, including each instalment. Issue the TDS certificate to the seller from TRACES after the statement is processed.

The formula

Property TDS = Higher of (consideration, stamp duty value) × 1%, if either is ₹50 lakh or more | Rent TDS = Monthly rent × Months in the year × 2%, if the monthly rent exceeds ₹50,000

Consideration
The aggregate amount paid or payable by all the buyers to all the sellers for the property, including club membership, car parking, maintenance and similar charges that form part of the price.
Stamp duty value
The value adopted or assessed by the stamp valuation authority for registration. Where it is higher than the consideration, TDS runs on the stamp duty value.
₹50,000 a month
The rent threshold, tested for a month or part of a month. Rent of exactly ₹50,000 does not attract deduction; ₹50,001 does.
Last month
The month in which rent TDS is deducted: March for a continuing tenancy, or the month in which the tenancy ends if that is earlier.
Non-PAN rate
20% under section 397(2), earlier section 206AA. For rent the deduction is further capped at the rent for the last month.

Property TDS is deducted on every payment, including each instalment to a builder, at credit or payment, whichever is earlier. Rent TDS is deducted once, not every month.

How to calculate it

  1. 1

    Pick the transaction and test the threshold

    For a purchase, compare both the consideration and the stamp duty value with ₹50 lakh; if either reaches it, TDS applies to the whole amount. For rent, compare the monthly rent with ₹50,000; the annual total is irrelevant, so ₹45,000 a month for twelve months is outside the provision even though it exceeds ₹5 lakh.

  2. 2

    Fix the base

    Property TDS runs on the higher of the consideration and the stamp duty value, not merely on the consideration. Rent TDS runs on the rent credited or paid for the whole year, or for the part of the year the tenancy ran, since it is deducted only once.

  3. 3

    Apply the rate and check the PAN

    Use 1% for property and 2% for rent where the payee has furnished a PAN. Without one, section 397(2), earlier 206AA, pushes the rate to 20%. For rent the deduction is then capped at the last month's rent, so the tenant never pays more than that month's rent to the government.

  4. 4

    Deduct at the right time

    Property TDS is deducted at each payment or credit, so a builder paid in instalments sees 1% withheld from every instalment. Rent TDS is deducted with the rent for March, or with the final month's rent if the tenancy ends earlier in the year.

  5. 5

    Pay and file Form 141 within 30 days of the month end

    Log in with your PAN on the e-filing portal and file Form 141, Schedule B for property or Schedule A for rent, paying the tax with it. It is due within 30 days from the end of the month of deduction. Deductions up to 31 March 2026 continue on Forms 26QB and 26QC under the earlier rules.

  6. 6

    Issue the certificate to the seller or landlord

    Download the TDS certificate from TRACES once the statement is processed and hand it to the payee, who claims the credit in their return. A late statement attracts the ₹200 a day fee under section 427, earlier 234E, and late payment carries interest at 1.5% a month under section 398, earlier 201(1A).

TDS on property purchase and rent by an individual, FY 2026-27 (AY 2027-28)

TDS on property purchase and rent by an individual, FY 2026-27 (AY 2027-28)
ItemProperty purchase (393 / 194-IA)Rent by an individual or HUF (393 / 194-IB)
Who deductsAny buyer of immovable property from a resident sellerAn individual or HUF not liable to tax audit, paying rent to a resident
ThresholdConsideration or stamp duty value of ₹50 lakh or moreRent above ₹50,000 for a month or part of a month
BaseHigher of the consideration and the stamp duty valueRent for the whole year or the whole tenancy
Rate with PAN1%2% (5% before 1 October 2024)
Rate without PAN20%20%, capped at the rent for the last month
When to deductAt each payment or credit, whichever is earlierOnce, with the rent for the last month of the tax year or of the tenancy
TAN requiredNo, the buyer's PAN is usedNo, the tenant's PAN is used
Form from 1 April 2026Form 141, Schedule B (earlier Form 26QB)Form 141, Schedule A (earlier Form 26QC)
Due date30 days from the end of the month of deduction30 days from the end of the month of deduction
ExcludedAgricultural land, non-resident sellerTenant liable to audit, non-resident landlord

Worked example: flat purchased in July 2026

Agreed consideration
₹72,00,000
Stamp duty value
₹75,00,000
Buyers and sellers
One buyer, one seller, seller has a PAN
Date of payment
15 July 2026
  • Threshold test: ₹75,00,000 is ₹50 lakh or more, so section 393 (earlier 194-IA) applies
  • Base = higher of ₹72,00,000 and ₹75,00,000 = ₹75,00,000
  • TDS = ₹75,00,000 × 1% = ₹75,000
  • Net payable to the seller = ₹72,00,000 − ₹75,000 = ₹71,25,000
  • Form 141, Schedule B is due 30 days from 31 July 2026, that is 30 August 2026
  • For comparison, rent of ₹60,000 a month for twelve months: TDS = ₹7,20,000 × 2% = ₹14,400, deducted with the March 2027 rent

TDS to deduct = ₹75,000, and the seller receives ₹71,25,000.

Frequently asked questions

On whichever is higher. Since 1 April 2022 the base for the 1% deduction has been the higher of the consideration and the stamp duty value, and the Income-tax Act, 2025 carries the same wording into the section 393 table. The ₹50 lakh threshold is also tested against both figures, so a flat sold for ₹48 lakh with a stamp duty value of ₹52 lakh attracts TDS on ₹52 lakh.
Yes, if the property as a whole is ₹50 lakh or more. The consideration for the threshold is the aggregate paid or payable by all the buyers to all the sellers, so a ₹80 lakh flat bought jointly by two people is one transaction above the line, and each buyer deducts 1% on their share. Each buyer files a separate Form 141 for each seller.
No. Both deductions are made and reported using the deductor's own PAN through a challan-cum-statement, which was Form 26QB for property and Form 26QC for rent, and is Form 141 for deductions from 1 April 2026. The certificate to the seller or landlord is downloaded from TRACES after the statement is processed.
2% for deductions made on or after 1 October 2024, reduced from 5% by the Finance (No. 2) Act, 2024. The 2% rate is carried forward into the Income-tax Act, 2025 for FY 2026-27. It applies to an individual or HUF not liable to tax audit paying rent above ₹50,000 for a month or part of a month to a resident landlord.
Once a year. The tax is deducted with the rent for the last month of the tax year, which is March, or the last month of tenancy if the property is vacated earlier, and it is computed on the rent for the whole year or the whole tenancy. Form 141 is then due within 30 days from the end of that month.
The rate rises to 20% under section 397(2) of the Income-tax Act, 2025, earlier section 206AA. On a property that means 20% of the base instead of 1%. On rent the deduction cannot exceed the rent payable for the last month, so a tenant paying ₹60,000 a month withholds the whole ₹60,000 of the March rent rather than 20% of the annual rent.
Only for payments or credits made up to 31 March 2026, including a belated or corrected statement for those. For deductions from 1 April 2026 the Income-tax Act, 2025 replaces Forms 26QB, 26QC, 26QD and 26QE with a single Form 141, in which Schedule B reports property purchases and Schedule A reports rent paid by an individual or HUF.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

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