When to deduct TDS on Sale of Property?

On the sale of a property, the buyer is required to deduct 1% of TDS on payment above INR 50 Lakh to the seller.

The buyer then deposits the TDS with the government by filing Form 26QB (return & challan of TDS payment). After which, the buyer issues Form 16B is a TDS certificate on the sale of the property to the seller. 

Note: This rule does not apply to the sale of agricultural land.