TDS on a property purchase, Form 141

Last checked 11 November 2026. This is not tax advice. It is a reading of the Income Tax Department’s own pages for a buyer who is about to pay for a property. A chartered accountant still has to apply it to the deed in front of you.

If the seller is resident, and the property is not agricultural land, and the price or the stamp-duty value is Rs.50 lakh or more, the buyer deducts tax at 1% of the higher of those two amounts. The row is section 393(1), Table serial number 3(i), of the Income-tax Act, 2025. You report that deduction on Form 141, Schedule B, within 30 days from the end of the month of deduction.

The rate and the threshold

The department’s page for section 393 states the rate as 1% of the consideration or the stamp-duty value, whichever is higher. Note 3 on that table says tax is deducted where the consideration or the stamp-duty value is Rs.50 lakh or more. The department’s TDS FAQ for tax year 2026-27 says the same 1%, and it says that once either figure is Rs.50 lakh or more, tax is deducted on the entire amount, not only on the amount above Rs.50 lakh.

Note 1 says the consideration, for that Rs.50 lakh test, is the total of the amounts paid or payable by all the buyers to the seller or sellers. Two buyers cannot split one Rs.60 lakh purchase into two payments under Rs.50 lakh and skip the deduction.

Form 141, Schedule B

The department’s note on Form 141 says Schedule B is the challan-cum-statement for this deduction. It replaced the old Form 26QB for a resident seller. The same note says:

• The buyer deducts at the time of credit or at the time of payment, whichever rule in the row applies, and files Schedule B.
• The form is filed electronically within 30 days from the end of the month in which the deduction is made.
• Every buyer and every seller is reported, with the share of each.
• If the resident sellers are all companies, or all non-companies, one form can cover them. If some sellers are companies and some are not, file separate forms.
• After processing, the buyer downloads the TDS certificate, Form 132, from TRACES and issues it within 15 days from the due date of Form 141. The seller’s credit shows in Form 168.

The department’s Form 141 FAQ says the form applies to transactions in tax year 2026-27 onwards, and it repeats the immovable-property threshold of Rs.50 lakh or more.

Filing is on the income-tax e-filing portal: log in with PAN, open e-Pay Tax, choose the schedule, enter the parties and the property, pay, and download the challan. This page does not reprint that screen.

When the seller is a non-resident

Form 141 Schedule B is for a payment to a resident seller. The TDS FAQ says section 393(1), Table serial 3(i), does not apply when the seller is a non-resident. The deduction is then under section 393(2), Table serial 17. The Act’s table for that serial says “rates in force”. It does not give one percentage for every sale by a non-resident. Which rate applies depends on the income. The same FAQ says a buyer who is unsure of the amount may apply to the officer handling non-resident taxation. Take the deed to a chartered accountant before you deduct. Do not reuse the 1% resident rate on an NRI sale.

What this page does not decide

• Whether a particular plot is “agricultural land” as the Act defines it.
• The rupee amount of Tamil Nadu stamp duty. That floor can change the 1% base, because the base is the higher of price and stamp-duty value. Read the duty on the Tamil Nadu charges page and then on tnreginet.gov.in.
• TDS on a broker’s own commission. That is a different row, noted on GST for brokers, and this page does not print it.

Questions