Property purchases carry the buyer's least-expected tax duty: deduct TDS from the seller and deposit it yourself. From a resident seller it is 1% via Form 26QB; from an NRI seller it is a different regime entirely — TAN, higher rates on the sale value, Form 27Q — and mixing the two up is the costliest common mistake in property tax.
When this service is typically required
- Buying property worth ₹50 lakh or more from a resident seller (26QB applies)
- Buying from an NRI seller — the 195 regime explained — where 26QB does NOT apply
- A notice arrived for TDS not deducted/deposited on a past purchase
- Joint buyers/sellers or instalment payments complicate the filings
Indicative scope
- Regime determination: resident (194-IA/26QB) vs NRI seller (195/TAN/27Q)
- 26QB preparation per buyer-seller combination, with Form 16B issuance
- NRI-seller path: TAN, deduction at applicable rates (or the seller's 197 certificate), deposit, 27Q
- Instalment-wise deduction tracking for under-construction purchases
- Default cures: late fee/interest computation and corrections
Key points at a glance
| Item | Position |
|---|---|
| Resident seller | 1% on consideration ≥ ₹50 lakh; 26QB within 30 days of month-end of deduction |
| Certificate | Form 16B to the seller after 26QB processing |
| NRI seller | No 26QB — TAN + Section 195 deduction on sale value + Form 27Q quarterly |
| Joint parties | One 26QB per buyer-seller pair — four filings for 2×2 |
Deliverables
Filed 26QB/27Q with challans, Form 16B/16A certificates, the deduction working, and for NRI purchases the complete compliance file both parties' future filings rely on.
Information and documents generally required
Sale agreement, PANs of all parties (and seller's residency status honestly established), payment schedule, and the seller's 197 certificate where one exists.
Engagement process
Client responsibilities, assumptions and reliance
The buyer bears the deduction duty and its defaults — seller assurances do not transfer it. Residency status must be established honestly; "he has an Aadhaar" is not a test.
Scope exclusions
Capital-gains planning for the seller (separate engagement), stamp duty/registration law, and litigation.
Frequently asked questions
The seller says "I'll handle my own taxes — pay me full." Can I?
No — the law puts deduction on the buyer, and the department pursues the buyer for defaults. This is the one point on which no seller's comfort matters.
We already paid several instalments without deducting. How bad?
Curable: deduct/deposit now with interest, file, and adjust with the seller commercially. Waiting for the notice only adds fees to the same arithmetic.
Is 1% on the whole price or above ₹50 lakh?
On the whole consideration once the threshold is crossed — a ₹60 lakh purchase means TDS on ₹60 lakh.
Buying jointly with my spouse from an NRI couple — how many filings?
The NRI path runs per deductor with 27Q reporting per quarter — the mapping in the setup step lays out exactly who files what.
The applicable scope, documentation, professional responsibilities and timelines are agreed in an engagement letter before commencement.
NRI Lower-TDS CertificateTDS ComplianceIncome Tax FilingRequest a Scope DiscussionThis page describes the service in general terms as on 6 August 2026 and is not professional advice or an assurance of any outcome. Registrations, filings, refunds and departmental outcomes depend on facts and the concerned authority. Figures and due dates change; verify current positions before acting.