TDS on property is an important compliance requirement for buyers purchasing immovable property from a resident seller. Under the earlier Income-tax Act, 1961, this compliance was commonly reported through Form 26QB under section 194-IA.
Under the Income Tax Act, 2025, the provision relating to TDS on transfer of certain immovable property is now covered under section 393(1) [Table: Sl. No. 3(i)]. The reporting and payment of such TDS is required through Form 141, specifically under Schedule B.
Form 141 is a consolidated challan-cum-statement introduced for specified PAN-based TDS transactions. It replaces earlier Forms 26QB, 26QC, 26QD and 26QE and contains separate schedules depending on the nature of transaction.
Table of Contents
- What is TDS on property?
- TDS on property under section 393(1)
- What is Form 141?
- Schedule B of Form 141 for property transactions
- Rate and threshold for TDS on property
- Due date for filing Form 141
- Details required for filing Form 141
- Multiple buyers or sellers in property transaction
- Step-by-step process to file Form 141
- Common mistakes to avoid
- Frequently asked questions
What is TDS on Property?
TDS on property means tax deducted at source by the buyer at the time of making payment or crediting consideration to the seller for purchase of immovable property, other than agricultural land.
The purpose of this provision is to ensure reporting of high-value property transactions and collection of tax at the transaction stage itself. The buyer is responsible for deducting and depositing the tax with the Government.
Simple understanding: When a buyer purchases immovable property from a resident seller and the transaction crosses the prescribed threshold, the buyer has to deduct TDS, deposit it through Form 141 and issue the applicable TDS certificate to the seller.
TDS on Property under Section 393(1)
Under the Income Tax Act, 2025, TDS on transfer of certain immovable property is covered under section 393(1) [Table: Sl. No. 3(i)]. This provision applies to consideration for transfer of any immovable property, other than agricultural land.
The buyer, being the transferee, is required to deduct tax at the time of credit of such sum to the account of the transferor or at the time of payment, whichever is earlier.
| Particulars | Details |
|---|---|
| New provision | Section 393(1) [Table: Sl. No. 3(i)] of the Income Tax Act, 2025 |
| Earlier provision | Section 194-IA of the Income-tax Act, 1961 |
| Nature of transaction | Transfer of immovable property other than agricultural land |
| Person responsible to deduct | Buyer / transferee |
| Reporting form | Form 141 |
| Relevant schedule | Schedule B of Form 141 |
What is Form 141?
Form 141 is a challan-cum-statement for reporting and depositing TDS deducted under specified transactions covered by section 393(1) of the Income Tax Act, 2025.
Instead of filing separate forms such as 26QB, 26QC, 26QD and 26QE, the new framework uses one consolidated Form 141 with separate schedules for different transactions.
| Schedule | Transaction Covered | Earlier Form |
|---|---|---|
| Schedule A | Rent payments | Form 26QC |
| Schedule B | Purchase / transfer of immovable property | Form 26QB |
| Schedule C | Payments to resident contractors or professionals | Form 26QD |
| Schedule D | Transfer of virtual digital assets | Form 26QE |
Important: For TDS on property, the buyer should select Schedule B in Form 141. The other schedules are not relevant for property purchase transactions.
Schedule B of Form 141 for Property Transactions
Schedule B of Form 141 is specifically used for reporting TDS on transfer of immovable property. It replaces the earlier reporting through Form 26QB.
Schedule B is applicable where a buyer is responsible for paying consideration to a resident seller for transfer of immovable property, other than agricultural land, and the transaction falls within the prescribed threshold under section 393(1) [Table: Sl. No. 3(i)].
The buyer must ensure that the details of the buyer, seller, property, consideration, date of deduction and tax deducted are correctly reported in the form.
Rate and Threshold for TDS on Property
For transfer of immovable property other than agricultural land, TDS is applicable where the prescribed threshold is crossed. Under section 393(1) [Table: Sl. No. 3(i)], the rate is 1% of the consideration for transfer of immovable property or stamp duty value of such property, whichever is higher.
| Particulars | Applicable Position |
|---|---|
| Threshold | ₹50 lakh or more |
| Rate | 1% |
| Amount on which TDS is calculated | Consideration for transfer or stamp duty value, whichever is higher |
| Property excluded | Agricultural land |
| Seller covered | Resident seller / resident transferor |
Professional Note: At the time of property purchase, buyers should verify both agreement value and stamp duty value. TDS should be calculated with reference to the applicable provision and the higher value principle wherever applicable.
Due Date for Filing Form 141
Form 141 is required to be furnished electronically within 30 days from the end of the month in which tax is deducted.
For example, if TDS is deducted in July 2026, Form 141 should be filed within 30 days from the end of July 2026.
| Month of TDS Deduction | Due Date Logic |
|---|---|
| April 2026 | Within 30 days from 30 April 2026 |
| May 2026 | Within 30 days from 31 May 2026 |
| Any later month | Within 30 days from the end of the relevant month |
Details Required for Filing Form 141 for TDS on Property
Before filing Form 141 Schedule B, the buyer should keep all relevant details ready. Incorrect details may lead to mismatch, non-reflection of credit to the seller, late fees, interest or correction requirements.
| Category | Details Required |
|---|---|
| Buyer details | PAN, name, address, mobile number and email ID |
| Seller details | PAN, name, address, mobile number and email ID |
| Property details | Address and transaction-specific property details |
| Transaction details | Property value, stamp duty value, date of agreement/payment and share percentage, wherever applicable |
| TDS details | Date of deduction, tax amount, interest or fee if applicable |
| Payment details | Online payment of tax along with submission of Form 141 |
Multiple Buyers or Sellers in Property Transaction
Property transactions often involve more than one buyer or more than one seller. Under the revised Form 141 structure, details of all buyers and sellers involved must be reported, along with their respective share percentages in the property transaction.
As a practical rule, where there is more than one buyer, separate filing may be required for each deductor for the respective proportionate share. The form also allows reporting of multiple deductees, subject to the structure and validation rules of Form 141.
Example: If two buyers purchase property jointly, each buyer should ensure that TDS compliance is completed for their respective share of consideration. If there are multiple sellers, the buyer should carefully report seller-wise details and share percentages.
Step-by-Step Process to File Form 141 for TDS on Property
Step 1: Login to the Income Tax e-Filing Portal
The buyer should login to the Income Tax e-Filing Portal using PAN-based credentials.
Step 2: Go to e-Pay Tax
Under the e-Pay Tax functionality, select the option for filing Form 141, which is the challan-cum-statement for specified TDS transactions.
Step 3: Select Schedule B
For TDS on property, select Schedule B, which is applicable for transfer of immovable property.
Step 4: Enter Buyer and Seller Details
Enter PAN, name, address, contact number and email ID of the buyer and seller correctly. PAN mismatch may result in credit not reflecting properly in the seller’s tax records.
Step 5: Enter Property and Transaction Details
Enter property value, stamp duty value, property address, date of payment or credit, share percentage and other relevant transaction details.
Step 6: Enter TDS Details
Enter TDS rate, amount deducted, date of deduction and other payment details. If there is delay in deduction or payment, applicable interest and late fee should be considered.
Step 7: Make Online Payment
The TDS amount is paid electronically along with submission of Form 141.
Step 8: Download Acknowledgement and Challan Details
After successful payment and submission, the system generates an acknowledgement and challan details. A Challan Identification Number may be generated upon successful payment.
Step 9: Download and Issue TDS Certificate
After processing, the buyer can download the applicable TDS certificate in Form 132 from TRACES and issue it to the seller.
Common Mistakes to Avoid While Filing TDS on Property
- Selecting the wrong schedule in Form 141.
- Entering incorrect PAN of seller or buyer.
- Not considering stamp duty value while calculating TDS.
- Missing share percentage in case of joint buyers or joint sellers.
- Delaying filing beyond 30 days from the end of month of deduction.
- Applying the wrong form or treating Form 26QB as applicable after the new framework.
- Not downloading and issuing Form 132 TDS certificate to the seller.
- Ignoring interest and late fee in case of delayed deduction, payment or filing.
Professional Note: In property transactions, PAN validation of the seller should be completed before payment. If the seller’s PAN is invalid or incorrect, TDS credit may not reflect properly and higher deduction implications may arise wherever applicable.
Consequences of Delay or Incorrect Filing
Delay or error in filing Form 141 may result in late fee, interest, defaults in processing, mismatch in the seller’s tax records and requirement to file correction statement.
| Issue | Possible Consequence |
|---|---|
| Late filing of Form 141 | Late fee under section 427 of the Income Tax Act, 2025 |
| Late deduction or late payment | Interest under section 398(3)(a), as applicable |
| Incorrect PAN of seller | TDS credit may not reflect in the seller’s records |
| Incorrect transaction details | Correction statement may be required |
Correction of Form 141
If there is an error in Form 141, a correction statement may be filed to rectify mistakes in the relevant schedule. The correction facility is important where details such as PAN, amount, date, share percentage or transaction details are incorrectly reported.
As per the official FAQ, correction statement may be filed within two years from the end of the tax year in which such statement is required to be delivered.
Frequently Asked Questions on TDS on Property and Form 141
1. What is Form 141?
Form 141 is a challan-cum-statement for reporting and depositing TDS under specified transactions covered by section 393(1) of the Income Tax Act, 2025.
2. Which earlier form is replaced for TDS on property?
For TDS on property, earlier Form 26QB is replaced by Schedule B of Form 141.
3. Which schedule should be selected for TDS on property?
Schedule B of Form 141 should be selected for TDS on transfer of immovable property.
4. Is TAN required for filing Form 141?
No. Form 141 is a PAN-based challan-cum-statement. Filing is done using the PAN of the deductor.
5. What is the threshold for TDS on property?
TDS on transfer of immovable property is applicable where the transaction value meets the prescribed threshold of ₹50 lakh or more.
6. What is the TDS rate on property under section 393(1)?
The rate for TDS on property under section 393(1) [Table: Sl. No. 3(i)] is 1% of consideration or stamp duty value, whichever is higher.
7. What is the due date for filing Form 141?
Form 141 is required to be filed within 30 days from the end of the month in which tax is deducted.
8. Can Form 141 be revised?
Yes. A correction statement may be filed to rectify errors within the prescribed time limit.
9. What happens after Form 141 is filed and payment is made?
After successful payment and processing, the deductor can download the relevant TDS certificate in Form 132 from TRACES and issue it to the seller.
10. What happens if the seller’s PAN is incorrect?
If the seller’s PAN is incorrect or invalid, the TDS credit may not reflect properly in the seller’s tax records and correction may be required.
Conclusion
TDS on property under the Income Tax Act, 2025 is now aligned with the new section 393(1) framework. For purchase of immovable property from a resident seller, the buyer is required to deduct tax under section 393(1) [Table: Sl. No. 3(i)] and report it through Schedule B of Form 141.
Since Form 141 replaces the earlier Form 26QB for property transactions, buyers should carefully select the correct schedule, verify PAN details, calculate TDS correctly, file the form within the due date and issue Form 132 TDS certificate to the seller after processing.