How-to · Tax
TDS on property purchase: 1 per cent above ₹50 lakh, and Form 141 from April 2026
When a buyer of immovable property deducts 1 per cent, why the ₹50 lakh test uses the higher of consideration and stamp duty value, how multiple buyers and sellers report, and why Form 26QB becomes Form 141 Schedule B under section 393(1) table sl. no. 3(i).
In this guide
A buyer of immovable property other than agricultural land deducts 1 per cent of the consideration when the value exceeds ₹50 lakh. Until 31 March 2026 that is reported on Form 26QB. From 1 April 2026 the same deduction sits in section 393(1) table sl. no. 3(i) and is reported in Schedule B of Form 141, filed through PAN login on the e-Filing portal. There is no TAN requirement.
The buyer deducts, not the seller
On a transfer of immovable property other than agricultural land, the person paying the consideration deducts 1 per cent and deposits it. That person is the buyer. The seller receives the net amount and takes credit for the tax in their own return.
This is the one deduction most individuals will ever make, and it does not run through the usual quarterly machinery. There is no TAN and no Form 26Q. The statement is PAN based, and the official e-Filing page says it is filed through the PAN login in post-login mode only.
How the ₹50 lakh test works
The Form 141 page states the rule in one line: tax is required to be deducted only if the value exceeds ₹50 lakh. Two figures are captured on the statement, and both matter.
| Field | What goes in it |
|---|---|
| Total stamp duty value | Value as per the agreement, entered in full and never proportioned across multiple deductees |
| Total value of consideration | The full sale value, again not proportioned where there are multiple deductees |
Because both figures are on the form, the deduction is not computed off a discounted agreement price alone. Where the stamp duty value and the consideration diverge, take the higher figure into the threshold decision and read the section row before you settle the amount.
An instalment purchase does not escape. The statement asks whether payment is lumpsum or in instalments, then for the instalment type and the previous acknowledgement number. Each instalment carries its own deduction; the threshold is tested on the property, not on the tranche.
Multiple buyers or sellers
Joint purchases are where these statements go wrong. The form handles them, but only if the shares are entered honestly.
- Enter every buyer with their proportionate share of the purchase. The shares must total 100 per cent.
- Enter every seller as a deductee with their proportionate share, whether corporate or non-corporate.
- Leave the stamp duty value and the consideration at their full amounts. The proportionate figure is auto-calculated from the buyer share and the seller share.
The statement also splits by deductee type. Corporate and non-corporate sellers cannot sit on the same form, so a mixed transaction needs one form per type. A single form also covers only one transaction category and one month of deduction.
Form 26QB becomes Form 141 Schedule B
Until 31 March 2026 the buyer files Form 26QB. From 1 April 2026 the official page says Form 141 consolidates the PAN based statements and replaces 26QB, 26QC, 26QD and 26QE. Property sits in Schedule B, under section 393(1) table sl. no. 3(i).
| Transaction | Form 141 schedule | Table serial |
|---|---|---|
| Rent paid by an individual or HUF | Schedule A | Sl. no. 2(i) |
| Transfer of immovable property | Schedule B | Sl. no. 3(i) |
| Payment by an individual or HUF to a contractor or professional | Schedule C | Sl. no. 6(ii) |
| Transfer of a virtual digital asset by an individual or HUF | Schedule D | Sl. no. 8(vi) |
The path on the portal is e-File, then e-Pay Tax, then New Payment, then the Form 141 tile. The form asks for the tax year of the transaction and the month of deduction before it opens the schedule, so decide the month correctly. A wrong month restricts the date calendar later in the form.
The deductee panel asks whether a certificate under section 395(1)applies, and for the certificate number if it does. That is the seller's lower-deduction certificate. Without one, use the table rate.
How to confirm on official pages
- Read the official Form 141 page. Step 10 covers Schedule B, including the ₹50 lakh note and the instruction not to proportion the stamp duty value.
- For a transaction straddling the cutover, read question 1 of the TDS Compliance FAQ. The earlier of credit or payment decides the Act.
- Open section 393 and read sl. no. 3(i) for the rate and the description.
After depositing, download the challan receipt and check the credit appears against the seller. The seller reconciles it through 26AS and AIS.
Where Complied AI fits
The threshold and the rate are in the Act. What still moves is the form utility, a schedule change, or a clarification on joint ownership. CBDT updates on Complied AI keep those next to section 393, so a buyer filing in October is not working from a March screenshot.
Practical checks
Common questions
Who deducts TDS on a property purchase?
The buyer. The duty sits on the person paying the consideration for the transfer, not on the seller. An ordinary home buyer does not need a TAN for this deduction, because the statement is PAN based and is filed through the buyer's own login.
Is TDS payable on a property worth exactly ₹50 lakh?
No. The Form 141 page states that tax is required to be deducted only if the value exceeds ₹50 lakh. At exactly ₹50 lakh the threshold is not crossed. Above it, the 1 per cent applies to the whole consideration, not only to the excess.
Which form reports TDS on property from April 2026?
Form 141, Schedule B. The official e-Filing page says Form 141 consolidates the earlier 26QB, 26QC, 26QD and 26QE statements, and that Schedule B covers TDS on transfer of immovable property under section 393(1) table sl. no. 3(i).
How do co-buyers file when a flat has two purchasers?
Each buyer enters the total stamp duty value and total consideration without proportioning them, then states their own share of the purchase. The Form 141 page is explicit that the stamp duty value must not be proportioned even where there are multiple deductees. The proportionate amount is auto-calculated from the buyer and seller shares.
Publication method
How this guide was prepared
This guide is published by the Complied AI research desk. Its source list and stated position were checked against the official records shown below on 19 August 2026.
Automation, including AI, may assist research, drafting and structure. It does not replace the official record or amount to an independent professional review. Read our editorial standards and corrections policy.
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