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TDS Calculator — Property & Rent
Section 194-IA and 194-IB: what the buyer or tenant has to deduct, and when to deposit it.
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Result
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Two provisions put an ordinary individual in the position of a tax deductor. Both catch people out, because there is no accountant in the room when they apply.
Buying property — section 194-IA
At ₹50 lakh and above, the buyer deducts 1% of the full consideration and pays it with Form 26QB within 30 days of the end of the month of payment. The threshold looks at the property, so joint buyers cannot split their way under it. Without the seller's PAN the rate becomes 20%.
Paying rent — section 194-IB
An individual paying more than ₹50,000 a month deducts 2% once a year, from the last month's rent, and files Form 26QC. The deduction is capped at one month's rent, which matters on a short tenancy.
Why it is worth getting right
Late filing costs ₹200 a day until the form is in, and the liability sits with the deductor, not the recipient. For a property purchase the amounts are large enough that the penalty compounds quickly.
Frequently asked questions
When does TDS apply on buying property?
Section 194-IA applies when the consideration is ₹50 lakh or more. The buyer deducts 1% of the full amount — not just the excess over ₹50 lakh — and deposits it with Form 26QB within 30 days of the end of the month of payment.
Can joint buyers avoid TDS by splitting the purchase?
No. The threshold applies to the property, not to each buyer's share. Where there are multiple buyers or sellers, a separate Form 26QB is filed for each combination, but the obligation itself does not disappear.
What is the TDS rate on rent for individuals?
Section 194-IB applies to individuals and HUFs paying more than ₹50,000 a month. The rate is 2%, deducted once a year from the last month's rent and paid with Form 26QC. The deduction cannot exceed one month's rent.
What happens if I do not deduct?
The liability stays with you, not with the seller or landlord, along with interest and a late-filing fee of ₹200 a day until the form is filed. On a property purchase the sums involved make this an expensive oversight.