HOW TO PAY TDS ON PROPERTY PURCHASE FROM 1ST APRIL 2026 I HOW TO FILE FORM141 INCOME TAX RULES 2026
HOW TO PAY TDS ON PROPERTY PURCHASE FROM 1ST APRIL 2026 I HOW TO FILE FORM141 INCOME TAX RULES 2026
Property purchase tds payment New Income Tax Rules 2026
Under the new Income-tax Act, 2025 and Income-tax Rules, 2026, the rules for deducting and depositing Tax Deducted at Source (TDS) on the purchase of property are structured as follows:
1. Threshold and TDS Rate
When purchasing immovable property (other than agricultural land) with a consideration or stamp duty value of ₹50 lakh or more, the buyer is mandatorily required to deduct 1% TDS. This 1% tax must be calculated on the actual consideration amount paid for the property or the stamp duty value of the property, whichever is higher.
2. Form No. 141 (Replaces Form 26QB)
Buyers do not need to obtain a Tax Deduction and Collection Account Number (TAN) for this transaction. They can report and deposit the tax using their Permanent Account Number (PAN) via the new unified Challan-cum-Statement called Form No. 141. Specifically, buyers must fill out Schedule B of this form, which corresponds to the transfer of immovable property. (Note: Form 141 can only be used when buying from a resident seller. As discussed previously, buying from an NRI requires the buyer to obtain a TAN).
3. Due Date for Payment
The TDS amount must be deposited, and Form No. 141 must be filed electronically, within 30 days from the end of the month in which the deduction is made.
4. Rules for Multiple Buyers or Sellers
If the transaction involves joint buyers or joint sellers, the details of all parties along with their respective share percentages in the property must be reported.
- If there are multiple resident sellers who share the same status (e.g., all are non-companies/individuals), the buyer only needs to file one single Form 141 that collectively includes all the sellers.
- If the sellers have different statuses (e.g., one is a company and the other is an individual), the buyer must file separate forms—one for the company payee and one for the non-company payee.
5. Issuing the TDS Certificate (Form 132)
Once Form 141 is successfully processed and paid, the buyer must download the TDS certificate in Form No. 132 from the TRACES portal and issue it to the seller(s). This certificate must be issued to the seller within 15 days from the due date of filing Form 141.
6. Enhanced Tracking via Stamp Paper Purchases
To curb under-reporting of property values and illegal cash transactions, the government now tracks high-value stamp paper purchases. If a buyer purchases stamp paper worth ₹2,00,000 or more in a single transaction (or ₹1,00,000 or more if they do not have a PAN), the transaction will be automatically reported to the Income Tax Department by the Stock Holding Corporation of India Limited. If the reported stamp paper value suggests a property purchase price higher than what is declared, it will trigger an Income Tax notice.
7. How TDS will be deposited if part payment made on or before 31st March 2026 and part payment made on or after 1st APril 2026
Question : This is Regarding 1% tds on property purchase under income tax. I have a query my part payment was done in feb 2026 and rest in may 2026 now i am confused which form to fill 26QB or 141.
Which Form to Use?
- For the February 2026 Payment:
- Form to Fill: Use the old Form 26QB.
- Reason: Since the payment occurred before March 31, 2026, it falls under the old Income Tax Act, 1961.
- Note: If you haven’t filed this yet, it is already overdue (due date was March 30, 2026) and will attract interest and late fees.
- For the May 2026 Payment:
- Form to Fill: Use the new Form 141 (Schedule B).
- Reason: Any payment made on or after April 1, 2026, must be reported using Form 141 under the new Income Tax Act, 2025.
- Due Date: You must file this by June 30, 2026 (within 30 days from the end of the month of deduction).
Key Differences Summary
| Feature | February 2026 Payment | May 2026 Payment |
|---|---|---|
| Applicable Form | Form 26QB | Form 141 |
| Governing Act | Income Tax Act, 1961 | Income Tax Act, 2025 |
| TDS Certificate | Form 16B | Form 132 |
| Due Date | March 30, 2026 | June 30, 2026 |
Important Filing Tips
- Multiple Forms: You must file a separate form for each installment.
- Access: Both forms are available on the Official Income Tax e-Filing Portal under the “e-Pay Tax” section.
- TDS Rate: The rate remains 1% for both payments, provided the seller’s PAN is valid.
Also refer
Form 132 Income Tax Rules 2026 Certificate under section 395(4) for tax deducted at source
queries solved
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