Buying an immovable property valued at ₹50 lakh or more involves important tax compliance responsibilities for the buyer. To simplify the process, the Central Board of Direct Taxes (CBDT) has operationalised Form 141, a single Allan-cum-statement for reporting and depositing Tax Deducted at Source (TDS) on specified transactions under the Income Tax Act, 2025. Effective from 1 October 2026, Form 141 replaces multiple forms such as Forms 26QB, 26QC, 26QD and 26QE, making TDS compliance simpler, more streamlined, and fully digital.
The new Form 141 introduces separate schedules for different categories of transactions. Buyers purchasing property from a resident seller are required to use Schedule B, while resident individuals and Hindu Undivided Families (Hugs) purchasing property from non-resident (NRI) sellers can now use Schedule E without obtaining a separate Tax Deduction and Collection Account Number (TAN). This significant procedural change, introduced through CBDT Notification No. 121/2026 dated 22 September 2026, is expected to reduce the compliance burden and make TDS reporting easier for taxpayers.
In this article, we explain what Form 141 is, who is required to file it, the transactions it covers, the applicable due dates, and the important compliance requirements that every property buyer should understand. Whether you are purchasing your first home or investing in real estate, understanding these new TDS rules will help you avoid errors, interest, and penalties while ensuring smooth compliance with the Income Tax Act, 2025.
What is Form 141?
Form 141 is a consolidated electronic Challan-cum-statement used for depositing and reporting TDS deducted on specified transactions. It replaces the following forms that were used under the Income-tax Act, 1961:
- Form 26QB
- Form 26QC
- Form 26QD
- Form 26QE
Instead of maintaining separate forms for different transactions, taxpayers can now use one common form with different schedules depending on the nature of the transaction
Why Was Form 141 Introduced?
The Government introduced Form 141 to:
- Simplify TDS compliance.
- Reduce paperwork.
- Provide a single online reporting system.
- Improve accuracy in tax reporting.
- Make filing easier for individual taxpayers and Hugs.
The change is procedural. It does not change the basic TDS liability applicable on property purchases.
When is TDS Applicable on Property Purchase?
TDS is required if:
- The sale consideration is ₹50 lakh or more, or
- The stamp duty value is ₹50 lakh or more,
whichever is applicable under the law.
The provision generally applies to purchases of immovable property other than agricultural land. The buyer is responsible for deducting TDS before making payment to the seller.
Applicable TDS Rate
For purchases from a resident seller, the buyer is generally required to deduct:
TDS @ 1%
The deduction is made on the value prescribed under the applicable provisions before paying the seller.
Which Schedule Should Be Used?
For property transactions, buyers need to use:
Schedule B of Form 141
If the seller is a non-resident, the relevant schedule prescribed for such transactions should be used instead.
Important Compliance Rules
Home buyers should remember the following:
- Each buyer must file the form for their respective share where there are joint buyers.
- If payment is made in instalments, the subsequent filing should correctly refer to the earlier acknowledgement number wherever required.
- TDS should be deposited within 30 days from the end of the month in which tax is deducted.
- Correct PAN details of both buyer and seller should be furnished.
- The residential status of the seller should be verified before filing the form.
Transactions Covered by Form 141
Apart from property purchases, Form 141 also covers:
- TDS on rent by specified individuals/Hugs.
- TDS on payments to contractors and professionals in specified cases.
- TDS on transfer of Virtual Digital Assets (ADA), such as cryptocurrencies.
Separate schedules are available for each type of transaction.
Who Needs to File Form 141?
Generally, Form 141 is applicable to:
- Individual buyers.
- Hindu Undivided Families (Hugs).
- Persons responsible for deducting TDS under the specified provisions covered by the form.
The filing is done online through the Income Tax e-Filing portal using the deductor’s PAN.
Step-by-Step Process to File Form 141 (Schedule B) for Purchase of Immovable Property
If you have purchased an immovable property from a resident seller and are required to deduct TDS, follow the steps below to file Form 141 (Schedule B) through the Income Tax e-Filing Portal.
Step 1: Deduct TDS
Before making payment to the seller, deduct TDS at the applicable rate as prescribed under the Income Tax Act, 2025.
Step 2: Log in to the Income Tax e-Filing Portal
Visit the Income Tax e-Filing Portal and log in using your PAN and password. Form 141 can only be filed after logging into the portal.
Step 3: Navigate to e-Pay Tax
After logging in:
e-File → e-Pay Tax → Select “Income Tax Act, 2025” → New Payment
Choose Form 141 (Callahan-cum-Statement of Deduction of Tax).
Step 4: Select the Appropriate Schedule
Select Schedule B – Transfer of Immovable Property if the property is purchased from a resident seller. If the seller is a non-resident, use Schedule E, where applicable.
Step 5: Select the Deductee Category
Choose the appropriate deductee category:
- Corporate Deductee, or
- Non-Corporate Deductee
If there are deductees belonging to different categories, separate Form 141 filings are required.
Step 6: Enter Deductor Details
Verify or enter:
- Name of Buyer (Deductor)
- PAN
- Address
- Mobile Number
- Email ID
Most details may be auto-populated from your PAN profile.
Step 7: Enter Seller (Deductee) Details
Provide:
- Seller’s PAN
- Name
- Address
- Mobile Number
- Email ID
Ensure the PAN is correct to avoid credit mismatch.
Step 8: Enter Property Details
Fill in the property information, including:
- Complete property address
- Date of agreement
- Date of payment or credit
- Total sale consideration
- Stamp duty value
- Amount paid
- Share of buyer and seller (if applicable)
Step 9: Enter TDS Details
Provide:
- Date of TDS deduction
- Applicable TDS rate
- Amount of tax deducted
- Interest or late fee, if any
The system will calculate the total amount payable.
Step 10: Review the Information
Before proceeding, carefully verify:
- PAN of buyer and seller
- Property value
- TDS amount
- Dates
- Contact details
Incorrect information may require a correction through the TRACES portal.
Step 11: Make Online Payment
Choose your preferred payment mode, such as:
- Net Banking
- Debit Card
- Other online payment options available on the portal
Complete the payment of TDS.
Step 12: Submit Form 141
After successful payment, submit Form 141 electronically.
An Acknowledgement Number and Callahan Reference Number (CRN/CIN) will be generated. Download and save the acknowledgement for future reference.
Step 13: Check Payment Status
You can view the filed Form 141 under:
e-File → e-Pay Tax → Income Tax Act, 2025 → Payment History
The filing status and acknowledgement will be available here.
Step 14: Download Form 132 (TDS Certificate)
Once Form 141 is processed, log in to the TRACES Portal and download Form 132 (earlier Form 16B). The TDS certificate should be issued to the seller within the prescribed time.
Important Points to Remember
- Form 141 must be filed within 30 days from the end of the month in which TDS is deducted.
- A separate Form 141 is required for each buyer where there are multiple buyers.
- If TDS is deducted in different months, separate Form 141 filings are required for each month.
- Correction of Form 141, if required, can be made through the TRACES Portal, not through the e-Filing Portal.
- Keep the acknowledgement number and payment receipt safely for future reference.
Common Mistakes to Avoid
While filing Form 141, taxpayers should avoid:
- Entering incorrect PAN details.
- Selecting the wrong transaction schedule.
- Missing the TDS payment deadline.
- Incorrect property value reporting.
- Ignoring the seller’s residential status.
- Filing a combined return instead of separate filings where required.
Even though the new form simplifies reporting, incorrect filing may lead to notices, interest, or penalties under the Income Tax Act.
Frequently Asked Questions (FAQs)
1. What is Form 141?
Form 141 is a unified Challan-cum-statement introduced under the Income Tax Act, 2025, for reporting specified TDS transactions.
2. Does Form 141 replace Form 26QB?
Yes. Form 141 replaces Form 26QB along with Forms 26QC, 26QD and 26QE.
3. Is TDS applicable on every property purchase?
No. It generally applies when the consideration or stamp duty value is ₹50 lakh or more (subject to the applicable legal provisions).
4. What is the TDS rate for buying property from a resident seller?
The applicable rate is generally 1%, subject to the provisions of the Income Tax Act.
5. When should Form 141 be filed?
The TDS should generally be deposited and the form filed within 30 days from the end of the month in which tax was deducted.
6. Who is required to file Form 141?
Form 141 is required to be filed by the person responsible for deducting TDS on specified transactions covered under the Income Tax Act, 2025. In the case of a property purchase, the buyer is generally responsible for deducting the tax and filing the form.
7. Is a TAN required for filing Form 141?
For eligible transactions covered under Form 141, a separate Tax Deduction and Collection Account Number (TAN) is generally not required. The form can be filed using the deductor’s Permanent Account Number (PAN), subject to the applicable provisions.
8. What details are required to file Form 141?
To file Form 141, the deductor should keep the following information ready:
- PAN of the buyer and seller.
- Property details.
- Sale consideration and stamp duty value.
- Date of payment or credit.
- Amount of TDS deducted.
- Bank payment details.
Providing accurate information helps avoid processing delays and notices.
9. What happens if Form 141 is not filed on time?
Failure to deduct or deposit TDS, or delay in filing Form 141, may attract interest, late filing fees, and penalties under the Income Tax Act, depending on the nature and duration of the default. Taxpayers should ensure timely compliance to avoid additional financial liability.
10. Can Form 141 be corrected after filing?
Yes. If any error is noticed after submission, such as an incorrect PAN, amount, or transaction details, the deductor may file a correction statement in accordance with the procedure prescribed by the Income Tax Department, subject to the applicable rules and system functionality.
Key Takeaways
The introduction of Form 141 is a welcome step towards simplifying TDS compliance under the Income Tax Act, 2025. Buyers purchasing property worth ₹50 lakh or more should understand their TDS responsibilities and complete the filing within the prescribed timeline.
Although the compliance process has become simpler, timely deduction of tax, correct filing of Form 141, and accurate reporting remain essential to avoid future tax dispute This article is for informational purposes only. Readers should verify the latest legal provisions and consult a tax professional before acting on the information provided.
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