Buying a Resale Flat in Mumbai? The 1% TDS Is Your Job, Not the Seller's

TDS when buying a resale flat in Mumbai from 1 April 2026: 1% at ₹50 lakh or more, Form 141, the 30-day deadline, joint owners, and NRI sellers.

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Most first-time buyers think TDS is something the seller sorts out. It isn't. When you buy a resale flat worth ₹50 lakh or more, you, the buyer, have to deduct tax from the price, pay it to the government and file the return. Miss it, and the interest and fees land on you.

The good news: it's simple once you know the steps. And since 1 April 2026, when the new Income-tax Act, 2025 came into force, the form has a new name.

How much TDS do I deduct when buying a flat from a resident seller?

Rate: 1% of the consideration.
Threshold: applies when the consideration is ₹50 lakh or more.
Law: section 393(1) of the Income-tax Act, 2025 (the old section 194-IA), effective 1 April 2026 (TDSMAN).

"Consideration" isn't just the base price. Charges like car parking and other amounts paid to the seller for the flat count too. One guide notes that TDS applies on the higher of the actual consideration or the stamp duty value (TheTaxCorp), so if your price is below the ready reckoner value, check with your CA which figure to use.

What if there are two buyers or two sellers?

The ₹50 lakh test is on the total value of the flat, not each person's share. A ₹60 lakh flat bought by two people paying ₹30 lakh each still attracts TDS. Each buyer deducts 1% on their own payment.

Which form do I use now?

Form 141, a challan-cum-statement, replaced Form 26QB from 1 April 2026. You deposit the TDS and file the statement within 30 days from the end of the month in which you deducted it. You don't need a TAN for this; your PAN is enough.

When you buy a resale flat, the TDS is your job, not the seller's. Do it with each payment, not at the end.

When exactly do I deduct it?

At the time you pay or credit the seller, whichever is earlier. If you're paying in instalments (token, agreement amount, balance at registration), deduct 1% from each instalment. Don't wait till the end.

What do I give the seller?

After you file, download the TDS certificate from the TRACES portal and give it to the seller. It's how they get credit for the tax in their own return.

What if the seller is an NRI?

Then the 1% rule doesn't apply. TDS is much higher, there's no ₹50 lakh threshold, and you'll need a TAN. If the seller has a lower deduction certificate, you deduct at the rate it states. I've written about this in the NRI seller's lower TDS certificate and in selling Mumbai property as an NRI.

A worked example

You buy a resale flat in Kandivali East for ₹1.2 crore from a resident seller. You pay ₹10 lakh as token in October and the balance of ₹1.1 crore at registration in November.

October: pay the seller ₹9.9 lakh, deposit ₹10,000 TDS by 30 November.
November: pay ₹1.089 crore, deposit ₹1.1 lakh TDS by 30 December.
Total TDS: ₹1.2 lakh, which is 1% of ₹1.2 crore.

How we help

On resales we handle, we put the price and our fee in writing before paperwork starts, as our operations team explains in this post, and we build TDS into the payment schedule so nobody forgets it at registration. You can use our TDS calculator to check the numbers.

Frequently asked questions

Is TDS required on a flat below ₹50 lakh?

No, not when buying from a resident seller.

Do I need a TAN to deduct TDS on a resale flat?

No, not for a resident seller. Your PAN is enough. Buying from an NRI is different.

What replaced Form 26QB?

Form 141, from 1 April 2026.

Related reading

Buying a resale flat? Book a call or message us on WhatsApp.

Warmly,
Yanik

General information, not tax advice. Check your situation with a chartered accountant.

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