In this guide
A buyer purchasing an immovable property for ₹50 lakh or more must deduct and deposit TDS at the prescribed rate. From 1 April 2026, the compliance process has changed under the Income-tax Act, 2025. The earlier Form 26QB has been replaced by Form 141 for applicable property transactions.
Form 141 is a challan-cum-statement covering multiple PAN-based TDS transactions. For the purchase of immovable property, the buyer must complete Schedule B of Form 141 under Section 393(1).
Form 26QB vs Form 141: What Changed From 1 April 2026?
Transactions completed up to 31 March 2026 were governed by the earlier Income-tax Act, 1961 framework and reported through Form 26QB. Transactions from 1 April 2026 onwards are covered by the Income-tax Act, 2025 and must be reported through Form 141.
| Particulars | Up to 31 March 2026 | From 1 April 2026 |
|---|---|---|
| Applicable legislation | Income-tax Act, 1961 | Income-tax Act, 2025 |
| Relevant provision | Section 194-IA | Section 393(1), Table Serial No. 3(i) |
| Form | Form 26QB | Form 141, Schedule B |
| Filing basis | Buyer’s PAN | Buyer’s PAN |
| TDS rate | 1% | 1% |
Form 141 combines the earlier Forms 26QB, 26QC, 26QD and 26QE. However, only the schedule relevant to the particular transaction must be completed.
For professional assistance with property TDS calculation and challan filing, visit TaxClear TDS and TCS Filing Services:
When Is TDS Applicable on Property Purchase?
TDS applies when a buyer pays consideration to a resident seller for the transfer of immovable property, other than agricultural land, and the applicable value reaches the prescribed threshold.
| Compliance requirement | Applicable rule |
|---|---|
| Threshold | ₹50 lakh or more |
| TDS rate | 1% |
| TDS calculation base | Higher of sale consideration or stamp duty value |
| Applicable form | Form 141, Schedule B |
| TAN requirement | Not required |
| Person responsible | Property buyer |
| TDS credit | Available to the seller |
Section 393(1) requires deduction at 1% of the consideration or stamp duty value, “whichever is higher.” The ₹50 lakh threshold must be checked with reference to the aggregate transaction value, including cases involving multiple buyers or sellers.
The Form 141 property schedule applies where the seller is a resident. The applicable TDS procedure is different where the property is purchased from a non-resident seller.
Who Receives the Benefit of Property TDS?
The buyer is responsible for deducting and depositing the TDS, but the final tax credit belongs to the seller.
The deposited amount is reflected against the seller’s PAN. When the seller calculates capital gains or capital loss from the property transfer, the TDS credit can be claimed against the final income-tax liability.
Therefore, the buyer must enter the seller’s PAN and other details correctly. An incorrect PAN can prevent the seller from receiving proper tax credit.
How to File Form 141 for Property Purchase Online
Step 1: Log In to the Income Tax Portal
Log in to the Income Tax e-Filing portal using the buyer’s PAN and password. Open the e-Pay Tax section.
Where the transaction took place on or after 1 April 2026:
- Select the Income-tax Act, 2025.
- Click New Payment.
- Select Form 141—Challan-cum-Statement of Deduction of Tax under Section 393(1).
- Click Proceed.
Step 2: Select the Deductee Category
The portal will ask for the type of deductee, meaning the seller.
Select the appropriate option based on whether the seller is:
- A non-corporate person, such as an individual; or
- A corporate entity, such as a company or applicable real-estate entity.
The seller’s residential status should be selected as resident for a property transaction covered by Schedule B.
Step 3: Select the Tax Year and Transaction Type
Select the relevant tax year and the month in which TDS is being deposited.
Under the nature of transaction, select:
TDS on transfer of immovable property under Section 393(1), Table Serial No. 3(i).
Step 4: Enter the Property Details
Select the applicable property type, such as:
- Land;
- Building;
- Apartment or flat; or
- Land and building.
Enter the complete property address with PIN code.
You must also provide:
- Date of agreement;
- Date of registration, where registration is completed;
- Stamp duty value of the property; and
- Sale consideration stated in the agreement or registration document.
Where registration has not yet been completed, the registration date may be left blank, subject to the fields available on the portal.
Step 5: Select Lump-Sum or Instalment Payment
If the complete property consideration is being paid at once, select the lump-sum payment option.
Where payment is being made in instalments, select whether the payment represents:
- First instalment;
- Subsequent instalment; or
- Final instalment.
The TDS details should correspond with the amount paid or credited in the relevant transaction.
Step 6: Enter Buyer and Seller Details
For a single buyer, enter the buyer’s share as 100%.
Where the property is purchased jointly, enter the share of every buyer according to the agreed ownership ratio. The total share should equal 100%.
Similarly, enter the PAN and percentage share of every seller. If there is only one seller, enter 100%. Where there are multiple sellers, the total consideration and TDS must be allocated according to their respective shares.
Step 7: Enter Transaction and TDS Details
Select the seller and enter:
- Amount paid or credited;
- Date of payment or credit;
- Applicable TDS rate;
- Amount of tax deducted; and
- Date of deduction.
The standard TDS rate is 1%. The portal calculates the TDS amount based on the information entered.
Where the seller holds a valid lower deduction certificate under Section 395(1), enter the certificate details. Otherwise, select No.
For assistance with a lower deduction certificate, visit:
Pay TDS and Download the Documents
Review the complete Form 141 preview, including the property, buyer, seller, transaction and tax details.
Payment can be completed through available modes such as:
- Net banking;
- Debit card;
- Payment gateway;
- UPI; or
- Credit card, where supported.
After successful payment, download both the payment receipt and filed statement. These documents should be retained by the buyer and provided to the seller.
Form 141 must generally be filed electronically within 30 days from the end of the month in which TDS is deducted. After processing, the applicable TDS certificate can be downloaded and issued to the seller.
The seller should verify the TDS credit before filing the Income Tax Return. For capital-gain reporting and tax-credit claims, visit TaxClear ITR Filing Services:
Frequently Asked Questions
Is TDS applicable when the property value is exactly ₹50 lakh?
Yes. Property TDS applies where the applicable transaction value is ₹50 lakh or more.
What is the TDS rate on property purchase in 2026?
The applicable TDS rate is 1% for a covered purchase from a resident seller.
Is TDS calculated on sale consideration or stamp duty value?
TDS is calculated on the higher of the sale consideration and stamp duty value.
Has Form 26QB been discontinued?
For transactions from 1 April 2026 onwards, the earlier Form 26QB has been replaced by Schedule B of Form 141 under the Income-tax Act, 2025.
Is TAN required to file Form 141?
No. Form 141 is a PAN-based challan-cum-statement, and the buyer can file it using PAN login.
Who can claim the property TDS credit?
The seller receives the TDS credit against the PAN reported by the buyer and can claim it against the final tax liability while filing the Income Tax Return.
