A Bengaluru buyer closing a 90 lakh rupee flat purchase in 2026 assumed the tax paperwork was the seller's problem. It was not. The law makes the buyer, not the seller, responsible for deducting one percent of the price as tax and depositing it with the government, using a form called 26QB. Miss it, and the buyer, not the seller, faces the interest and the notices. This quiet shifting of a tax duty onto the buyer catches first time purchasers every quarter, and understanding Form 26QB is what keeps a routine purchase from turning into a compliance headache.

The short answer. A buyer of immovable property other than agricultural land must deduct one percent TDS under Section 194-IA when the consideration or the stamp duty value is 50 lakh rupees or more, and the one percent is charged on the full amount, not only the portion above 50 lakh. Form 26QB is the challan cum statement used to deposit that TDS, and it must be filed within 30 days from the end of the month in which the deduction is made. The trade-off is that the responsibility sits with the buyer, so a buyer who does not deduct and file correctly bears the consequences, even though the money ultimately belongs to the seller's tax account.

The anchor number for a Bengaluru buyer in 2026 is 50 lakh rupees, the threshold at which the one percent TDS applies. Form 26QB for a property purchase in Bengaluru is therefore a buyer duty to plan into the transaction, not an afterthought.

When must a buyer deduct 1 percent TDS?

A buyer must deduct one percent TDS whenever the consideration or the stamp duty value of the property, other than agricultural land, is 50 lakh rupees or more. Importantly, the one percent applies to the entire sale amount, or the stamp duty value if that is higher, not merely the portion exceeding 50 lakh. So a purchase at 90 lakh attracts TDS on the whole 90 lakh, not on the 40 lakh above the threshold. The buyer deducts this from the payment to the seller and deposits it with the government, which is why the buyer, not the seller, has to account for it. Our guide to TDS on a property purchase under Section 194-IA for Bengaluru buyers covers the base rule this form implements.

What is Form 26QB and when is it filed?

Form 26QB is the challan cum statement used to deposit the deducted one percent TDS with the Central Government. Any sum deducted under Section 194-IA must be paid, accompanied by Form 26QB, within 30 days from the end of the month in which the deduction is made. So the timing is tied to when you deduct: if you deduct in a given month, the form and the payment are due within 30 days of that month ending. This makes Form 26QB a time bound obligation, not something to leave until you file your annual return. A buyer who deducts the TDS but forgets to file the form on time can face interest and late fees, which is why the 30 day window is worth marking on your calendar the moment a payment is made.

How does the buyer give the seller Form 16B?

After filing Form 26QB and the TDS being processed, the buyer registers on the TRACES portal as a taxpayer and downloads Form 16B, the TDS certificate, to issue to the seller. Form 16B is the seller's proof that the tax was deducted and deposited on their behalf, and the seller uses it to claim credit for that tax. The buyer must furnish the Form 16B certificate to the seller within 15 days from the due date for furnishing the Form 26QB challan cum statement. So the sequence runs deduct, deposit with Form 26QB, then download and hand over Form 16B, each step with its own timing. The table below sets out the key elements a Bengaluru buyer should track.

Read the table as the compliance checklist, and confirm the current steps and forms on the official portal when you file.

How does a joint purchase change the filing?

A separate Form 26QB must be filed for each unique buyer and seller combination, based on each party's share. So a purchase with one buyer and two sellers requires two forms, and two buyers and two sellers requires four forms, each covering the respective share of the payment and the TDS on it. This matters because a joint purchase multiplies the paperwork, and each buyer files under their own details. A common error is to file a single form for a joint purchase, which can leave the tax credit misallocated and draw a notice. Getting the number of forms right, and matching each to the correct buyer and seller, is a routine but important part of a joint transaction, and it is worth confirming before you deposit the tax.

Joint buyers should also remember that the 50 lakh threshold is judged on the total value of the property, so TDS can apply even when each buyer's individual share is below 50 lakh. The number of forms follows the number of buyer and seller pairs, while whether TDS applies at all follows the total price. Keeping these two questions separate, how many forms and whether the deduction is due, avoids the common mistake of assuming a below threshold share escapes the obligation.

What if the seller is an NRI?

Section 194-IA and Form 26QB apply only where the seller is a resident, so they do not apply when the seller is a non-resident or NRI. In that case, TDS is deducted under a different provision, Section 195, and reported by the buyer in Form 27Q rather than Form 26QB. This is a crucial distinction, because a buyer who mechanically deducts one percent and files Form 26QB for an NRI seller has used the wrong provision and the wrong rate, and can end up liable for the shortfall. So the first question a buyer should settle is the seller's residential status, since it decides which provision, which form and which rate apply. For the rate that applies to an NRI seller, a buyer should rely on the official portal, because it depends on the nature of the gain and other factors. Our guide to TDS when buying property from an NRI seller in Bengaluru covers that separate route.

Do you need a TAN to file Form 26QB?

No, for deducting TDS under Section 194-IA and filing Form 26QB, the buyer does not need a TAN, because the PAN of the buyer and the seller is sufficient. This is a deliberate simplification, since ordinary property buyers are not businesses that hold a Tax Deduction Account Number. So a buyer files Form 26QB using their PAN and the seller's PAN, which also means both parties need a valid PAN for the transaction to be reported correctly. A missing or incorrect PAN is a common cause of trouble, so a buyer should confirm the seller's PAN details before deducting and depositing the tax, to make sure the credit reaches the right account and the seller can claim it without a dispute.

What should a Bengaluru buyer do to comply?

Build the TDS steps into your purchase timeline with this checklist so nothing slips past a deadline.

1. Confirm whether the consideration or stamp duty value is 50 lakh rupees or more, which triggers the one percent TDS.
2. Confirm the seller's residential status, since an NRI seller falls under a different provision and form.
3. Deduct one percent on the full amount from the payment to a resident seller, not just the part above 50 lakh.
4. File Form 26QB and deposit the TDS within 30 days from the end of the month of deduction.
5. For a joint purchase, file a separate Form 26QB for each buyer and seller combination.
6. Register on TRACES, download Form 16B, and issue it to the seller within 15 days of the 26QB due date.
7. Confirm both parties' PAN details, since no TAN is needed but the PANs must be correct.

When must a Bengaluru buyer deduct 1 percent TDS under Section 194-IA?

You must deduct one percent TDS whenever the consideration or the stamp duty value of the property, other than agricultural land, is 50 lakh rupees or more. The one percent applies to the entire sale amount, not just the portion exceeding 50 lakh, and the buyer deposits it to the government on the seller's behalf.

What is Form 26QB and by when must it be filed?

Form 26QB is the challan cum statement used to deposit the deducted one percent TDS with the Central Government. Any sum deducted under Section 194-IA must be paid, accompanied by Form 26QB, within 30 days from the end of the month in which the deduction is made, so it is a time bound obligation.

How does the buyer give the seller Form 16B?

After filing Form 26QB and the TDS being processed, the buyer registers on the TRACES portal as a taxpayer and downloads Form 16B, the TDS certificate. The buyer must then issue this Form 16B to the seller within 15 days of the 26QB due date, as proof of the tax deducted and deposited with the government.

What happens if the property seller is an NRI?

Section 194-IA and Form 26QB apply only when the seller is a resident, so they do not apply to a non-resident or NRI seller. In that case TDS is deducted under Section 195 and reported in Form 27Q instead. For the rate that applies to an NRI seller, check the official income tax portal, since it depends on the gain.

Last updated 2026-07-07. PropNewz Team.