How to claim TDS on purchase of property in ITR for FY 2026-27: A Step-by-Step Guide

When purchasing a property, the buyer is required to deduct TDS (Tax Deducted at Source) on the payment made to the seller. How to claim TDS on purchase of property in ITR is a common question among property buyers. In this article, we will guide you through the process of claiming TDS on property purchase in your income tax return (ITR) for FY 2026-27.

Introduction to TDS on Property Purchase

TDS on property purchase is deducted by the buyer at the rate of 1% of the sale consideration, if the sale consideration exceeds Rs. 50 lakhs. The buyer is required to deposit the TDS amount with the government within the specified time limit.

Eligibility to Claim TDS Credit

To claim TDS credit, the buyer must have deducted TDS on the property purchase and deposited the same with the government. The buyer must also have a valid PAN (Permanent Account Number) and a valid TAN (Tax Deduction and Collection Account Number) to claim the TDS credit.

Step-by-Step Process to Claim TDS Credit

1. Obtain the TDS certificate (Form 16B) from the seller, which contains the details of the TDS deducted and deposited.
2. Enter the TDS details in the ITR form, including the TAN, PAN, and the amount of TDS deducted and deposited.
3. Claim the TDS credit in the ITR form, by entering the amount of TDS credit in the relevant field.

You may also find our guide on Tcs vs tds. How do I calculate the difference between TDS and TCS? in FY 2026-27 useful.

Worked Example

Let's consider an example where the buyer purchases a property for Rs. 60 lakhs and deducts TDS at the rate of 1%. The TDS amount deducted is Rs. 60,000. The buyer deposits the TDS amount with the government and obtains the TDS certificate (Form 16B). The buyer can claim the TDS credit of Rs. 60,000 in the ITR form.

Common Mistakes to Avoid

• Not obtaining the TDS certificate (Form 16B) from the seller.
• Not entering the TDS details correctly in the ITR form.
• Not claiming the TDS credit in the ITR form.

Comparison of Old and New Regime

Regime	TDS Rate	TDS Threshold
Old Regime	1%	Rs. 50 lakhs
New Regime	1%	Rs. 50 lakhs

We've also covered this in detail here: TDS Rate Chart 2025-26: Understanding TDS Meaning and Full Form.

Recent Rule Changes

The government has introduced new rules for TDS on property purchase, effective from FY 2026-27. The new rules require the buyer to deduct TDS at the rate of 1% on the sale consideration, if the sale consideration exceeds Rs. 50 lakhs.

Practical Tips

To avoid any issues while claiming TDS credit, it's essential to obtain the TDS certificate (Form 16B) from the seller and enter the TDS details correctly in the ITR form. It's also recommended to consult a tax professional to ensure that the TDS credit is claimed correctly.

Key Takeaways

In conclusion, claiming TDS on property purchase in ITR can be complex, but by following the step-by-step process and avoiding common mistakes, buyers can claim their TDS credit successfully. It's essential to obtain the TDS certificate (Form 16B) from the seller and enter the TDS details correctly in the ITR form.

Frequently Asked Questions

What is the TDS rate on property purchase?

The TDS rate on property purchase is 1% of the sale consideration, if the sale consideration exceeds Rs. 50 lakhs.

How to obtain the TDS certificate (Form 16B)?

The buyer can obtain the TDS certificate (Form 16B) from the seller, which contains the details of the TDS deducted and deposited.

What is the deadline for depositing the TDS amount?

The buyer must deposit the TDS amount with the government within the specified time limit, which is typically within 7 days from the date of deduction.

Can I claim TDS credit without a PAN?

No, the buyer must have a valid PAN to claim the TDS credit.

What is the threshold for TDS on property purchase?

The threshold for TDS on property purchase is Rs. 50 lakhs. If the sale consideration exceeds this threshold, the buyer must deduct TDS at the rate of 1%.

How to claim TDS credit in the ITR form?

The buyer can claim the TDS credit in the ITR form by entering the TDS details, including the TAN, PAN, and the amount of TDS deducted and deposited.

What are the consequences of not claiming TDS credit?

If the buyer fails to claim the TDS credit, they may lose the benefit of the TDS credit, which can result in a higher tax liability.

Can I claim TDS credit for previous years?

Yes, the buyer can claim the TDS credit for previous years, but they must ensure that the TDS details are correctly entered in the ITR form for the relevant year.