New Property TDS Rules 2026: Form 141

Introduction

Buying or selling property in India involves several legal and tax-related responsibilities. One important responsibility is Tax Deducted at Source (TDS), which requires the buyer to deduct the applicable tax from the payment made to the seller and deposit it with the government.

Property TDS compliance has undergone significant changes in 2026. The introduction of the Income-tax Act, 2025, from 1 April 2026 has changed the framework for reporting certain TDS transactions. Additionally, new reporting requirements for property purchases involving non-resident sellers have taken effect from 1 October 2026. These changes are important for homebuyers, property investors, real estate professionals, tax consultants, and property sellers. Income Tax Department

One of the most important developments is the introduction of Form 141, a consolidated challan-cum-statement that replaces the earlier Form 26QB for covered property transactions involving resident sellers. From October 2026, an additional Schedule E has also been introduced in Form 141 for specified transactions involving non-resident sellers, simplifying the reporting process for eligible resident buyers.

The new framework aims to simplify compliance, improve transaction reporting, and provide a more structured method of depositing and reporting TDS.

In this article, we explain the new property TDS reporting rules, the difference between Form 26QB and Form 141, applicable TDS provisions, reporting procedures, important deadlines, practical examples, and common mistakes to avoid.

1. What Is TDS on Property?

TDS on property is a tax deduction that the buyer must make when purchasing immovable property, subject to the applicable provisions of the Income-tax Act.

Under the earlier Income-tax Act, 1961, Section 194-IA governed TDS on the purchase of specified immovable property from a resident seller.

From 1 April 2026, the corresponding framework is governed by the relevant provisions of the Income-tax Act, 2025.

The buyer deducts the applicable tax from the payment to the seller and deposits it with the government through the prescribed procedure.

The rules applicable to a transaction depend on several factors, including:

• Whether the seller is a resident or non-resident.
• The total consideration for the property.
• The applicable stamp duty value.
• The date of payment or credit.
• The applicable tax rate and statutory provisions.
• Whether any lower or nil deduction certificate applies.

Important: Property purchases from resident sellers and non-resident sellers are subject to different TDS provisions. Buyers must identify the seller’s residential status before determining the correct reporting procedure.

2. What Are the New Property TDS Reporting Rules in 2026?

The 2026 changes involve two important developments.

A. Introduction of Form 141 From 1 April 2026

The Income-tax Act, 2025, introduced a consolidated reporting mechanism for specified PAN-based TDS transactions.

Earlier, separate forms were used for different transactions:

Under the new framework, these forms have been consolidated into Form 141, which contains different schedules for the relevant transaction categories. Income Tax Department

For property purchases involving resident sellers, Schedule B of Form 141 is used for the covered transactions.

This means that buyers making payments for covered property transactions from 1 April 2026 must follow the new reporting procedure rather than automatically using the earlier Form 26QB process.

Transactions governed by the earlier law because the relevant payment or credit occurred on or before 31 March 2026 continue to follow the applicable old-law procedure. Income Tax Department

B. New Reporting Requirements for Property Purchased From Non-Resident Sellers

Another important change applies from 1 October 2026.

Under the revised framework, eligible resident individual and Hindu Undivided Family (HUF) buyers purchasing immovable property from non-resident sellers can use a PAN-based reporting mechanism without obtaining a TAN solely for this purpose.

Form 141 has been amended to include Schedule E for reporting specified property transactions involving non-resident sellers. Form 132, the relevant TDS certificate, has also been updated. https://www.taxmann.com

This is particularly relevant to buyers purchasing property from Non-Resident Indians (NRIs).

Previously, resident buyers purchasing property from an NRI generally had to obtain a TAN and comply with the applicable TDS reporting requirements under Section 195 of the Income-tax Act, 1961.

The new mechanism simplifies the reporting process for eligible buyers. However, it does not remove the obligation to deduct and deposit the applicable tax.

Important: The simplified procedure should not be interpreted as a general exemption for all property transactions involving non-residents. Buyers must check the eligibility conditions and applicable provisions before using Form 141.

3. Difference Between Form 26QB and Form 141

The transition from Form 26QB to Form 141 is one of the most significant changes for property TDS compliance in 2026.

The transition depends on the date of the relevant payment or credit and the applicable legal provisions. Buyers should not assume that every transaction executed in 2026 automatically falls under the same procedure. Income Tax Department

4. TDS on Property Purchased From a Resident Seller

When a buyer purchases qualifying immovable property from a resident seller, the applicable TDS rules generally require deduction at 1% where the statutory threshold is crossed.

Under the earlier Section 194-IA framework, TDS applied when the consideration for the transfer or the stamp duty value of the property, as applicable under the statutory test, was not below ₹50 lakh. The corresponding provisions must be checked under the Income-tax Act, 2025, for transactions from 1 April 2026.

The earlier provision also required consideration to include certain incidental charges, such as club membership fees, car parking fees, maintenance charges, and similar amounts connected with the property transfer. Income Tax India

Example

Suppose Mr. A purchases a residential property from Mr. B, who is a resident of India.

The transaction details are as follows:

In this example, the buyer deducts ₹80,000 from the payment to the seller and deposits the amount with the government through the prescribed procedure.

For a transaction governed by the new framework, the buyer must report the transaction using Form 141, Schedule B.

The example assumes that the seller is resident, the standard 1% rate applies, and no special circumstances alter the tax treatment.

When Must TDS Be Deducted?

Under the earlier Section 194-IA framework, TDS was deducted at the time of credit of the consideration to the seller or at the time of payment, whichever occurred earlier.

The applicable deduction timing must be checked under the law governing the transaction.

Buyers should not wait until the final registration of the property if the applicable provisions require deduction at an earlier payment or credit event.

5. TDS on Property Purchased From an NRI Seller

Property purchases from non-resident sellers require special attention because the TDS treatment differs from transactions involving resident sellers.

Under the earlier Income-tax Act, 1961, Section 195 governed TDS on payments to non-residents, including the sale of immovable property in India.

Unlike the resident-seller rule, the general ₹50 lakh threshold applicable under Section 194-IA did not apply in the same way to property purchases from non-residents.

The buyer must determine the applicable tax treatment based on the relevant provisions, the seller’s status, the nature of the income, and any applicable certificate or other statutory relief.

The new Schedule E reporting mechanism introduced from 1 October 2026 simplifies the reporting procedure for specified transactions by eligible resident individual and HUF buyers. It does not mean that the tax rate or underlying tax liability is automatically reduced. Income Tax India

Example: Property Purchased From an NRI

Suppose Mr. X, an Indian resident, purchases a property from Mr. Y, who is an NRI.

The agreed sale price is ₹1 crore.

The buyer should not automatically deduct 1% merely because the property value is ₹1 crore.

Instead, the buyer must determine the applicable TDS treatment under the provisions governing payments to non-residents.

The amount to be deducted may depend on the nature of the seller’s taxable income, the applicable rates, surcharge and cess where relevant, and whether a lower or nil deduction certificate has been issued.

After determining the correct tax treatment, an eligible buyer can use the revised reporting mechanism introduced from 1 October 2026, subject to the applicable requirements.

This distinction is crucial because applying the resident-seller TDS rule to an NRI transaction can result in a significant shortfall in tax deduction.

6. What Is Form 141 and How Does It Work?

Form 141 is a consolidated challan-cum-statement introduced under the Income-tax Act, 2025.

It combines reporting requirements for several specified transactions into a single form structure.

The form includes different schedules for different categories of payments.

The first four schedules form part of the consolidated Form 141 structure. Schedule E was introduced through the subsequent amendment dealing with non-resident property transactions. Income Tax Department

The form is intended to make reporting more consistent and reduce the need to navigate separate forms for each covered transaction category.

However, users must select the correct schedule and enter the information required for the transaction.

7. How to File Property TDS Through Form 141

Eligible buyers can follow the general procedure below for covered transactions under the new framework.

Step 1: Visit the Income-Tax E-Filing Portal

Open the official Income-tax Department portal:

https://www.incometax.gov.in/

Log in using the buyer’s PAN-based credentials.

Form 141 is available through the post-login e-filing and tax-payment process.

Step 2: Open the E-Pay Tax Section

Navigate to:

e-File → e-Pay Tax → New Payment

Select Form 141 under the Income-tax Act, 2025.

Follow the portal instructions to begin the transaction-reporting process. Income Tax Department

Step 3: Select the Applicable Deductee Type

Choose the appropriate deductee category according to the transaction and the options displayed on the portal.

Ensure that the selected category matches the relevant seller details.

Step 4: Enter the Transaction Details

For resident-seller property transactions under Schedule B, the information generally includes:

• Type of immovable property.
• Complete property address.
• Date of agreement.
• Date of registration, if available.
• Total stamp duty value.
• Total property consideration.
• Payment method, such as a lump sum or instalments.
• Details of buyers and sellers.
• Amount paid or credited.
• Applicable TDS rate.
• Tax deduction date.

The form also accommodates relevant details for transactions involving multiple buyers, sellers, or instalments. Income Tax Department

Step 5: Verify the TDS Calculation

Check the amount on which TDS is required to be deducted.

For resident-seller transactions, the system includes fields for the total consideration and stamp duty value, along with the relevant payment information.

For instalment-based transactions, the applicable fields must be completed correctly so that the deduction is calculated and reported appropriately.

Step 6: Deposit the Tax

Complete the tax-payment process using the payment methods available on the portal.

Review the transaction details and tax amount before making the payment.

Step 7: Submit and Save the Acknowledgment

After successful payment and submission, download the challan receipt and retain the acknowledgment details.

These documents are important for future reference, reconciliation, and responding to any tax-related query.

Step 8: Obtain the Applicable TDS Certificate

The buyer should obtain the relevant TDS certificate through the prescribed system and provide it to the seller.

For transactions under the new non-resident property reporting framework, the updated certificate requirements should be followed.

8. What Information Is Required for New Property TDS Reporting?

The buyer should collect the relevant information before beginning the filing process.

Important details include:

1. Buyer’s PAN and contact details.
2. Seller’s PAN and identifying details, where applicable.
3. Seller’s residential status.
4. Property address and description.
5. Date of agreement.
6. Property consideration.
7. Stamp duty value.
8. Payment dates and instalment details.
9. Applicable TDS rate.
10. Tax deduction date.
11. Details of any lower or nil deduction certificate, where relevant.
12. Payment and challan information.

For transactions involving an NRI seller, the buyer should also confirm the applicable non-resident tax provisions and the requirements of Schedule E.

Preparing these details in advance helps reduce errors and delays.

9. What Is the Due Date for Property TDS Payment and Reporting?

Timely payment and reporting are essential to avoid interest, fees, and other consequences.

Under the earlier framework, TDS deducted under Section 194-IA generally had to be deposited along with Form 26QB within 30 days from the end of the month in which the deduction was made.

For transactions governed by the new Income-tax Act, 2025, the relevant Form 141 procedure generally requires the deducted amount to be deposited within 30 days from the end of the month in which the tax was deducted. The form must also be furnished within the prescribed period, generally one month from the end of the deduction month. Income Tax Department

Example

Suppose the buyer deducts TDS on 12 October 2026.

The general 30-day deadline calculated from the end of October would be 30 November 2026.

The buyer should verify the applicable statutory deadline and portal requirements before filing.

Do not confuse the date of the property agreement with the date on which TDS is deducted. The relevant payment, credit, and deduction events determine the applicable reporting obligations.

10. What Happens if the Buyer Fails to Deduct or Report TDS?

Failure to deduct or deposit TDS can result in financial and legal consequences.

Depending on the applicable provisions, the buyer may face:

• Interest for failure to deduct tax on time.
• Interest for failure to deposit deducted tax.
• Fees for delayed filing, where applicable.
• Penalties under the relevant statutory provisions.
• Potential disallowance or other tax consequences in applicable cases.
• Additional compliance requirements to correct inaccurate reporting.

For example, if a buyer fails to deduct the required tax when making payment to a resident seller, the buyer may become liable for interest and other consequences under the applicable law.

If the buyer files incorrect property details or enters the wrong PAN, the transaction may not be properly reflected in the seller’s tax records.

Buyers should therefore verify all information before filing Form 141.

11. Common Mistakes to Avoid Under the New Property TDS Rules

Mistake 1: Using Form 26QB for a Transaction Governed by the New Law

From 1 April 2026, covered property transactions governed by the Income-tax Act, 2025, must follow the new reporting framework.

Buyers should determine the applicable form based on the relevant payment or credit event and the law governing the transaction.

Mistake 2: Applying the Same TDS Rate to Resident and NRI Sellers

The tax treatment for a resident seller is different from the treatment for a non-resident seller.

Always confirm the seller’s residential status before calculating TDS.

Mistake 3: Assuming That the ₹50 Lakh Threshold Applies to NRI Transactions

The threshold under the resident-seller property TDS provisions should not be applied automatically to non-resident transactions.

Property purchases from non-residents require a separate analysis under the applicable provisions.

Mistake 4: Ignoring Multiple Buyers or Sellers

Where multiple buyers or sellers are involved, the transaction details and ownership shares must be reported accurately.

The new form contains specific fields for recording the relevant parties and their respective shares.

Mistake 5: Missing the Filing Deadline

Late payment or reporting can result in interest, fees, and other consequences.

Buyers should maintain a compliance calendar and complete the reporting process within the prescribed time.

Mistake 6: Failing to Retain Documents

Keep the sale agreement, PAN details, payment records, challan receipt, acknowledgment, and TDS certificate safely.

These documents may be needed for future tax reporting, reconciliation, or legal verification.

12. Frequently Asked Questions

Q1. What is the new property TDS reporting form in 2026?

Form 141 is the consolidated challan-cum-statement used for covered TDS transactions under the Income-tax Act, 2025. Schedule B applies to specified property transfers involving resident sellers, while Schedule E covers specified transactions involving non-resident sellers under the amendment effective from 1 October 2026.

Q2. Is Form 26QB still applicable in 2026?

Form 26QB continues to apply to transactions governed by the earlier Income-tax Act, 1961, where the relevant payment or credit occurred on or before 31 March 2026. Covered transactions governed by the new law from 1 April 2026 use the new reporting framework.

Q3. Is TAN required when buying property from an NRI?

From 1 October 2026, eligible resident individual and HUF buyers can use the revised PAN-based mechanism for covered transactions without obtaining a TAN solely for this purpose. Buyers must confirm their eligibility and the applicable reporting requirements.

Q4. Does the new Form 141 reduce the TDS rate?

No. The introduction of a new reporting form does not automatically reduce the applicable TDS rate. The rate depends on the relevant statutory provisions and the nature of the transaction.

Q5. Is TDS applicable to every property purchase?

No. The applicability of TDS depends on the relevant provisions, property value, stamp duty value where applicable, the seller’s residential status, and other statutory conditions.

Q6. Where can I file Form 141?

Form 141 is available through the official Income-tax Department e-filing portal after login. Buyers should select the appropriate tax-payment option and transaction schedule.

Q7. What should I do if I make an error while filing Form 141?

Review the correction procedure available through the relevant tax portal. The Income-tax Department states that Form 141 corrections are handled through the TRACES portal rather than directly through the e-filing portal. Income Tax Department

Conclusion

The new property TDS reporting rules introduced in 2026 represent an important change in India’s tax-compliance framework.

The introduction of Form 141 from 1 April 2026 consolidates several previously separate TDS reporting forms into one structure. The subsequent changes effective from 1 October 2026 further simplify reporting for eligible resident individual and HUF buyers purchasing property from non-resident sellers.

However, simplified reporting does not eliminate the buyer’s responsibility to calculate, deduct, deposit, and report the correct amount of tax.

The most important compliance step is to identify whether the seller is resident or non-resident and determine which legal provisions apply to the transaction. Buyers should then select the correct reporting schedule, verify the property and payment details, meet the filing deadline, and retain all supporting documents.

By understanding these changes and following the correct procedure, property buyers can reduce compliance errors and complete their transactions with greater confidence.