Also called: TDS on property purchase, TDS on sale of property, 1% TDS
Tax deducted at source by the buyer: when buying a property (other than agricultural land) from a resident seller for ₹50 lakh or more, the buyer withholds 1% of the price and pays it to the government against the seller's PAN.
How it works and what to check
The 1% is worked out on the higher of the price and the stamp duty value, and deducted from each instalment, including the token. The buyer deposits it online with a challan-cum-statement using both PANs and gives the seller a TDS certificate. No TAN is needed for this.
If the seller is not resident in India, different and usually higher deduction rules apply, the buyer needs a TAN, and the seller can apply for a lower-deduction certificate. Get professional advice.
The Income-tax Act, 2025 has applied from 1 April 2026 and renumbered the provisions. Use the current form on the income tax portal.