How to Pay TDS on Property Online in Bangalore: Form 26QB Guide 2026
Step-by-step guide to pay TDS on property purchase online in India. Learn how to file Form 26QB, calculate 1% TDS under Section 194IA, and download Form 16B in 2026.
Quick Summary (TL;DR)
Buy property worth ₹50 lakh or more and TDS applies, automatically, legally, entirely on the buyer. Deduct 1% from the seller’s payment. File Form 26QB online. Deposit within 30 days of the month TDS was deducted. Miss the deadline and penalties start immediately. This guide walks you through every step.
You have finalised the property. Both parties agree on the price. The paperwork is moving. And then someone mentions TDS. Most buyers hear the term and assume it is the seller’s problem. It is not. Above ₹50 lakh, the law is unambiguous; the buyer deducts TDS, the buyer deposits it, and the buyer files the return.
What Is TDS on Property and Why Does It Matter?
TDS stands for Tax Deducted at Source. When you buy immovable property worth ₹50 lakh or more, the law requires you to deduct 1% from the payment you make to the seller and deposit it directly with the government.
It is the government’s way of collecting a portion of the seller’s tax at the point of the transaction itself — before the deal closes and before the seller files their annual return.
Why Is TDS Important?
If You Skip TDS | Consequence |
Failure to deduct | Interest at 1% per month from the date TDS was deductible |
Failure to deposit | Interest at 1.5% per month from date of deduction to deposit |
Late filing of Form 26QB | Penalty upto maximum of total TDS amount |
Non-filing of Form 26QB | Penalty between ₹10,000 and ₹1,00,000 under Section 271H |
Seller has no PAN | TDS rate jumps from 1% to 20% |
On a ₹1 crore property, missing TDS means ₹1 lakh in unpaid tax, plus interest and penalties that compound every month.
What are the Documents Required to file FORM 26QB
Keep the following ready before you log in to file Form 26QB. Missing any one of these will interrupt the process midway.
Documents Required | Details |
Buyer’s PAN | Your PAN card number is mandatory |
Seller’s PAN | Collect from the seller before any payment. no PAN means 20% TDS |
Property Details | Complete address, survey number, and pin code of the property |
Sale Consideration | The total agreed price of the property |
Stamp Duty Value | As assessed by the state government, TDS applies on whichever is higher |
Payment Mode | Net banking or debit card at authorised banks |
Date of Agreement / Payment | The date on which the payment is being made or was agreed |
No TAN needed. Unlike most TDS situations, Section 194IA does not require the buyer to obtain a Tax Deduction Account Number. Your PAN and the seller’s PAN are sufficient.
Need Help with Filing, Request a service from Vault to get your TDS on Sale of Property Hassle free.
How to Pay TDS on Property Online: Step by Step
The Protal where you can file Form 26QB:
Income Tax e-filing portal: https://www.incometax.gov.in/
This portal lead to the same Form 26QB. The steps below apply to either.
Step 1: Open Form 26QB on the Portal
On the Income Tax portal (https://www.incometax.gov.in/iec/foportal/), navigate to ‘e-Pay Tax’ and select ‘TDS on Property’.
Step 2: Fill in Buyer and Seller Details
Enter buyer’s full name and PAN
Enter seller’s full name and PAN
Enter complete property address including pin code
Select the financial year and the date of payment or credit
Step 3: Enter the Sale Consideration and TDS Base
Enter the total sale consideration on the agreed property price.
Enter the stamp duty value of the property as assessed by the state government.
TDS is calculated on whichever is higher, the actual sale price or the stamp duty value. The Finance Act 2022 introduced this rule to prevent deliberate undervaluation.
Step 4: Calculate the TDS Amount
The TDS amount is 1% of the higher figure entered in Step 3.
Example:
Property Value | Stamp Duty Value | TDS Base (Higher of Two) | TDS at 1% |
₹80,00,000 | ₹75,00,000 | ₹80,00,000 | ₹80,000 |
₹75,00,000 | ₹82,00,000 | ₹82,00,000 | ₹82,000 |
₹1,20,00,000 | ₹1,20,00,000 | ₹1,20,00,000 | ₹1,20,000 |
Step 5: Choose Payment Mode and Complete Payment
Select net banking from your bank’s authorised list
Or choose ‘Over the Counter’ to pay at an authorised bank branch
Complete the payment through your bank’s payment gateway
Save the acknowledgement number displayed after successful payment
Step 6: Download the Acknowledgement
After payment, download and save the Form 26QB acknowledgement.
This is your proof that the TDS has been filed and the payment has been initiated. Keep this safe. you will need it when downloading Form 16B.
Step 7: Download Form 16B from TRACES
Form 16B is the TDS certificate. It becomes available on the TRACES portal (traces.gov.in) 10 to 15 days after the TDS payment is processed.
Log in to traces.gov.in using your PAN
Go to ‘Downloads’ and select ‘Form 16B (For Buyer)’
Enter the acknowledgement number from Step 6
Select the assessment year and download the certificate
Hand Form 16B to the seller. It confirms TDS has been deducted and deposited on their behalf
Need Help with Filing, Request a service from Vault to get your TDS on Sale of Property Hassle free.
What Are the Key Deadlines for TDS on Property?
Action | Deadline |
Deduct TDS | At the time of payment or credit to seller, whichever is earlier |
Deposit via Form 26QB | Within 30 days from the end of the month in which TDS was deducted |
Download Form 16B | Available on TRACES 10 to 15 days after deposit |
Issue Form 16B to seller | As soon as it is available on TRACES |
Deduct TDS in March: deposit by 30 April. Deduct in October: deposit by 30 November. Every day beyond that attracts interest at 1.5% per month.
What Changes When a Property Is Jointly Bought or Sold? Joint transactions add a layer of complexity. Here is what changes:
Joint Buyers:
Each buyer is responsible for deducting TDS on their individual share of the payment
Each buyer must file a separate Form 26QB for their portion
Both buyer’s and the seller’s PANs are required for each filing
TDS is applied individually to each buyer’s share. Not split from a single filing
Joint Sellers:
TDS must be deducted on each seller’s share individually
A separate Form 26QB must be filed for each seller
Each seller must provide their PAN separately
Each seller receives their own Form 16B
What Are the Most Common TDS Filing Mistakes to Avoid?
Filing one Form 26QB for the full amount in a joint purchase. Each buyer must file individually for their share
Calculating TDS on the agreed sale price when the stamp duty value is higher. TDS applies on whichever is higher since 2022
Not collecting the seller's PAN before payment. No PAN means TDS at 20% instead of 1%
Missing the 30-day deposit deadline. Interest starts from day one
Not handing Form 16B to the seller. They cannot claim TDS credit without it
Assuming TDS does not apply to under-construction payments. It does, on every instalment where total consideration is above ₹50 lakh
Deducting TDS only on the final instalment. TDS applies proportionately on every payment
How Vault Proptech Helps With TDS and Property Transaction Compliance
Every property transaction in Karnataka comes with its share of documentation and compliance requirements. Vault Proptech makes sure none of it falls through the cracks.
Stage | How Vault Helps |
Before Purchase | Due diligence, hidden liability checks, document verification |
During Transaction | TDS guidance, Form 26QB timelines, registration compliance |
After Purchase | Khata transfer, MODT cancellation, revenue mutation, EC verification |
