Overview
TDS on purchase of immovable property has always been a critical compliance under the Income-tax law. With the introduction of the Income-tax Act, 2025, effective from 1 April 2026 , the government has streamlined TDS reporting by introducing a new unified form – Form 141 .
This change replaces multiple earlier forms and simplifies compliance for buyers, especially in joint ownership transactions.
Legal Provision (2026)
TDS on property transactions is governed by:
- Section 194-IA of Income-tax Act
- Now aligned with Section 393 of Income-tax Act, 2025
TDS on Purchase of Property
TDS (Tax Deducted at Source) means:
- The buyer deducts tax while making payment to the seller
- Deposits it with the government
- Issues a TDS certificate to the seller
This ensures proper reporting of high-value property transactions.
Applicability of TDS (2026)
TDS is applicable when:
Property value ≥ ₹50,00,000
Applies to:
- Residential property
- Commercial property
- Land (except rural agricultural land)
Not applicable on:
- Rural agricultural land
Who is Responsible?
Buyer of property
- No TAN required
- Only PAN needed
The Buyer Must ensure:
- Correct deduction
- Timely deposit
- Filing of Form 141
Introduction of Form 141 (From 1 April 2026)
Form 141 is a single consolidated challan-cum-statement for multiple TDS sections
Replaces:
- Form 26QB (property)
- Form 26QC (rent)
- Form 26QD / 26QE
Why was Form 141 Introduced?
To navigate the problems the problems of Separate form for each buyer-seller combination, Errors in PAN mapping, Complex in joint ownership form 141 was introduced.
Structure of Form 141
Form 141 is divided into 4 schedules:
- Schedule A → Rent (194-IB)
- Schedule B → Property (194-IA)
- Schedule C → Contractors/professionals
- Schedule D → Virtual digital assets
Details Required for Filing Form 141
| Buyer Details | Seller Details | Property Details | Transaction Details |
|
|
|
|
Step-by-Step Filing Process (Form 141)
Step 1: Deduct TDS
- Deduct 1% at time of payment/credit
Step 2: Access Portal
- Go to Income Tax Department of India portal
Step 3: Fill Form 141
- Select Schedule B
- Enter all transaction details
Step 4: Make Payment
- Pay via net banking / challan
Step 5: Generate Acknowledgement
- Save for records
Step 6: Download TDS Certificate
- Form 16B (or updated equivalent)
Due Date
The due date shall be Within 30 days from end of month of deduction
Example:
- Deduction date: 15 May 2026
- Due date: 30 June 2026
Interest & Penalty
Interest shall be 1% per month → for non-deduction
1.5% per month → for late payment
| Penalty | Late Fee |
| Up to ₹1 lakh | ₹200 per day (u/s 234E) |
Form 26QB vs Form 141 (Comparison)
| Particulars | Form 26QB | Form 141 |
| Applicability | Property only | Multiple sections |
| Multiple parties | Complex | Easy |
| Structure | Single form | Multi-schedule |
| Error handling | Limited | Improved |
| Effective date | Till 31 Mar 2026 | From 1 Apr 2026 |
FAQs
Is TDS applicable if property value is ₹49 lakhs?
No,the threshold is ₹50 lakhs.
Is TDS deducted on the entire value or excess?
Entire value (not just excess over ₹50 lakhs)
Can the buyer claim a refund of TDS?
No, the TDS belongs to seller’s tax credit
Is GST included in TDS calculation?
No, GST is not included.
When should Form 141 be filed?
Within 30 days from the end of the deduction month.
Can corrections be made in Form 141?
Yes, correction facility available on portal.
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