End-to-end TDS compliance advisory for buyers and sellers in property transactions. From accurate deduction and timely deposit to Form 26QB, 15CA/15CB, and NRI DTAA guidance — we handle it all.
What We Offer
From calculation and deduction to form filing, TDS deposits, and post-transaction reconciliation — we manage every compliance requirement for buyers and sellers.
Accurate TDS computation based on seller's residency status, transaction value, and applicable section (194-IA or 195). Covers full, advance, and instalment-based payments.
Complete preparation and filing of Form 26QB for resident sellers under Section 194-IA — serving as both TDS payment challan and statutory return in one step.
Specialised TDS services for NRI sellers under Section 195, including Form 15CA/15CB preparation, CA certification, DTAA benefits, and lower withholding certificates.
Timely issuance of Form 16B to resident sellers and acknowledgement certificates for NRI sellers, enabling proper TDS credit in their income tax returns.
Correct accounting entries for TDS deduction, net payment to seller, and deposit to Income Tax Department — transparent records for buyers and sellers alike.
Ensuring TDS deducted by the buyer is accurately reflected in the seller's Form 26AS, with immediate resolution of any discrepancies before income tax filing.
Systematic tracking and deposit of TDS via Challan 281 within prescribed deadlines (30 days from month-end), preventing penalties and interest under Section 201(1A).
Complete audit trail documentation of every TDS transaction, deposit, and filing. Full support during IT Department notices, assessments, and dispute resolution.
Verification of buyer and seller PAN details, preparation of all transaction documents, sale agreements, and identity records required for compliant TDS processing.
Key Compliance Requirements
Meeting these requirements protects both buyer and seller from penalties, interest, and legal complications under the Income Tax Act.
Both buyer and seller must possess valid PANs. Missing PAN can trigger higher TDS deduction rates and reporting failures with the Income Tax Department.
Correctly identifying whether Section 194-IA (resident, above ₹50L) or Section 195 (NRI, no threshold) applies to your transaction is the critical first step.
1% for resident sellers; applicable income tax rate (or AO-certified lower rate) for NRI sellers — deducted at payment or possession transfer, whichever is earlier.
Deducted TDS must be deposited with the government within 30 days from the end of the month of deduction. Late deposits attract interest under Section 201(1A).
Mandatory filing of Form 26QB for all resident seller transactions under Section 194-IA — serves as both the TDS payment instrument and statutory return simultaneously.
For NRI transactions, Form 15CA must be filed by the buyer and Form 15CB certified by a Chartered Accountant confirming correct TDS deduction before remittance.
Form 16B must be issued to resident sellers post-deposit. This certificate enables sellers to claim the TDS credit when filing their income tax returns.
Sellers must verify that TDS is correctly reflected in Form 26AS maintained by the IT Department — preventing tax credit mismatches during return filing.
Maintain sale deeds, PAN copies, payment proofs, challans, statutory forms, and TDS certificates. Essential for audit readiness and future IT Department queries.
NRI sellers can benefit from Double Taxation Avoidance Agreements to reduce withholding rates. Lower deduction certificates from the Assessing Officer prevent over-taxation.
Legal Framework
The applicable TDS section depends entirely on the residential status of the seller. Here's a clear comparison to help you identify your compliance path.
For Resident Indian Sellers (Individuals & HUF)
For NRI / Foreign Sellers
Step-by-Step Process
A systematic, fully managed process ensuring zero errors, zero penalties, and complete statutory compliance for every property transaction.
We confirm the seller's residential status, verify whether the transaction exceeds ₹50L (resident) or applies regardless (NRI), and determine the applicable section — 194-IA or 195.
Gather PAN and identity documents of both buyer and seller, sale deed/agreement, property details, bank information, and Tax Residency Certificate for NRI sellers.
Precise computation at 1% for resident sellers (194-IA) or the applicable income tax rate / AO-certified lower rate for NRI sellers (195), covering full and instalment payments.
Buyer deducts the computed TDS amount at the time of payment or transfer of possession — whichever occurs first — before remitting net proceeds to the seller.
Deducted TDS is deposited via Challan 281 within 30 days from the end of the deduction month. For NRI transactions, deposit is made alongside Forms 15CA and 15CB.
Form 26QB filed for resident seller transactions (194-IA). Forms 15CA and 15CB prepared and filed for NRI seller transactions (195), with CA certification managed by us.
Form 16B issued to resident sellers for TDS credit in their ITR. Proper acknowledgement and documentation provided to NRI sellers for tax credit and compliance records.
Correct journal entries recorded for TDS deduction, net payment to seller, and deposit to IT Department — maintaining transparent, audit-ready financial records.
Verification that TDS deducted by buyer appears correctly in the seller's Form 26AS. Discrepancies resolved immediately to ensure seamless income tax return filing.
Capital gain calculations, DTAA treaty analysis, lower withholding certificate applications with the Assessing Officer, and international tax reconciliation for NRI/foreign sellers.
Complete documentation archive of sale deeds, PAN copies, payment proofs, challans, statutory forms, and certificates — fully prepared for IT Department enquiries or audits.
Frequently Asked Questions
Answers to the most important TDS compliance questions for property buyers and sellers in India.
TDS (Tax Deducted at Source) on property sale requires the buyer to deduct a portion of the sale price and remit it to the Income Tax Department. This applies under Section 194-IA for resident sellers and Section 195 for NRI or foreign sellers. The responsibility for deduction, deposit, and filing lies entirely with the buyer — not the seller.
Section 194-IA applies when the seller is a resident individual or HUF, and the property (immovable, not agricultural land) has a sale consideration exceeding ₹50 Lakhs. TDS must be deducted at 1% of the total sale price at the time of payment or transfer of possession, whichever comes first.
Section 195 applies to all property transactions involving NRI or foreign sellers — regardless of the transaction amount. The TDS rate is based on the applicable income tax rate (which can be higher than 1%) unless the NRI seller obtains a lower withholding certificate from the Assessing Officer. Additionally, Forms 15CA and 15CB are required instead of Form 26QB.
For resident sellers (Section 194-IA): Form 26QB is the mandatory TDS payment and return form, and Form 16B is issued as the TDS certificate to the seller. For NRI sellers (Section 195): Form 15CA (buyer's declaration) and Form 15CB (CA-certified confirmation of TDS deduction) are required for every remittance to the non-resident seller.
Late or non-deduction of TDS attracts interest under Section 201(1A) of the Income Tax Act. Additionally, failure to deposit TDS on time results in penalties. The buyer may also be treated as an "assessee in default," making them liable for the full TDS amount plus interest and penalties — even if the seller has already paid their income tax.
Yes. NRI sellers can benefit from Double Taxation Avoidance Agreements (DTAA) between India and their country of residence. By submitting a Tax Residency Certificate and applying for a lower withholding certificate from the Assessing Officer under Section 195(2), the applicable TDS rate can be significantly reduced, preventing over-deduction of tax at source.
Yes. Agricultural land is specifically exempt from TDS requirements under Section 194-IA. However, the land must genuinely qualify as agricultural land under income tax definitions. Urban agricultural land and land situated within certain municipal or urban limits may not qualify for this exemption. Professional verification is recommended before assuming exemption.
TDS must be deducted on each instalment payment as it is made to the seller. The 1% deduction under Section 194-IA applies to each individual payment if the total consideration exceeds ₹50 Lakhs. It is not permissible to defer TDS deduction until the final payment. Our advisory service manages TDS computation and filing for every instalment systematically.
Don't risk penalties, interest, or legal notices. Our experts handle every step of TDS compliance for your property transaction — resident or NRI.