Property TDS Penalty & Interest Calculator – Section 194-IA

Frequently Asked Questions

What is the due date for TDS on property purchase?

As per Section 194-IA, the TDS must be paid within 30 days from the date of payment or credit to the seller.

What happens if I delay TDS payment?

You will be liable to pay interest (1%/1.5%) and penalty (₹200/day) under the Income Tax Act.

Can I make multiple TDS payments?

Yes, you can make TDS payment in parts, but each payment has its own 30-day deadline.

Complete Guide to TDS on Property Purchases – Section 194-IA

When purchasing immovable property in India, it is mandatory for the buyer to deduct Tax Deducted at Source (TDS) under Section 194-IA of the Income Tax Act if the property value exceeds ₹50 lakh. The TDS rate is 1% of the total sale consideration, and it must be deposited using Form 26QB.

Who is Responsible for Deducting TDS?

The responsibility lies entirely with the buyer of the property. Sellers are not required to deduct TDS on their own. Failing to deduct or deposit TDS can result in interest and penalties under the Income Tax Act.

When and How to Deposit TDS

TDS must be deposited within 30 days from the end of the month in which the payment is made to the seller. This is done online via Form 26QB, which generates a challan that serves as proof of TDS payment. Multiple payments or installments can be made, but each installment has its own 30-day deposit window.

Interest and Penalties for Late Payment

If TDS is not deducted or deposited on time, the following charges apply:

• Interest: 1% per month on the TDS amount for late deduction, and 1.5% per month for late deposit.
• Penalty: ₹200 per day for late filing of Form 26QB (capped at the TDS amount).

Our Property TDS Penalty & Interest Calculator automatically computes the total interest and penalties based on your payment dates and amounts, ensuring compliance and accurate filing.

Steps to Use the Calculator

1. Enter the total property sale value.
2. Select the date of agreement and payment installments.
3. Indicate whether TDS has been paid for each installment.
4. Click “Check Penalty” to instantly calculate TDS, interest, and penalties.

Why Use Our Calculator?

Manually calculating TDS, interest, and penalties can be time-consuming and error-prone. Our free online calculator:

• Supports multiple installments and partial payments.
• Automatically applies the correct interest rates and penalties.
• Helps you stay fully compliant with Section 194-IA.
• Generates accurate TDS amounts ready for Form 26QB filing.

By using our tool, property buyers can avoid unnecessary fines, save time, and ensure proper TDS compliance under Indian tax law.