TDS on Property Purchase 26QB: Pay 1% via Form 141 (Delhi NCR)
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If you are buying a flat, plot or shop in Delhi, Gurugram, Noida, Ghaziabad or Faridabad, your tax duty does not end at stamp duty and registration. For many deals, you must also hold back 1% of the price and pay it to the Income Tax Department yourself. Buyers know this as TDS on property purchase 26QB.
One update first. Form 26QB was the old payment form. For payments made on or after 1 April 2026, it has been replaced. This guide uses “26QB” because that is how most people search, and explains what you actually file today.
This is general information, not tax advice. Several of the points below come from tax-practitioner write-ups of the new rules, so confirm the final details on the Income Tax portal or with a chartered accountant before you pay.
What changed: Form 26QB is now Form 141
The Income-tax Act, 2025 took effect on 1 April 2026. The old Section 194-IA now corresponds to Section 393, and Form 26QB gives way to Form 141 for property TDS. The 1% rate and the ₹50 lakh threshold carry over unchanged.
The payment date decides which form you use, not the date of your agreement. If you paid on or before 31 March 2026, the old rules and Form 26QB apply. If you paid after that, you use Form 141. A buyer who paid in instalments on both sides of that date may need both forms for the same flat.
| Item | Payments up to 31 March 2026 | Payments from 1 April 2026 |
|---|---|---|
| Law | Section 194-IA, Income Tax Act 1961 | Section 393, Income-tax Act 2025 |
| Payment and statement | Form 26QB | Form 141 (Schedule B for property) |
| Certificate for seller | Form 16B | Form 132 |
| Rate and threshold | 1% and ₹50 lakh | 1% and ₹50 lakh |
| TAN needed? | No, PAN only | No, PAN only |
When does the 1% TDS apply?
TDS applies when you buy immovable property other than agricultural land from a resident seller, and the value is ₹50 lakh or more. Flats, houses, shops, offices and non-agricultural plots all count. Three points trip up many buyers.
The 1% applies to the whole amount
It is not charged only on the portion above ₹50 lakh. On a ₹75 lakh flat, TDS is 1% of ₹75 lakh, which is ₹75,000.
The higher of price or stamp duty value is used
The 1% is calculated on whichever is higher: the agreed price or the stamp duty value. Stamp duty value is the government’s circle-rate value, and it varies by state and locality across Delhi NCR. This rule has applied since 1 October 2024. So a deal priced at ₹46 lakh with a stamp duty value of ₹48 lakh has no TDS. A deal priced at ₹46 lakh with a stamp duty value of ₹52 lakh does.
Extra charges count, GST generally does not
The consideration includes parking, club membership, maintenance deposits, electricity and water connection fees, and preferential location charges. GST shown separately on an under-construction flat is generally left out of the TDS base, following CBDT circulars. Keep the GST amount clearly separated in your agreement and receipts so there is no argument later.
Who deducts TDS: buyer or seller?
The buyer deducts and deposits the tax. The seller does not. This applies to any buyer, including an individual who has never dealt with TDS before. You do not need a TAN. The PAN of the buyer and the seller is enough.
The seller later claims the deducted amount as a tax credit when filing their return. That is why the details you enter must be accurate.
You deduct at the time of payment or credit, whichever happens first. This includes the booking amount and every instalment, if the total deal value is ₹50 lakh or more.
Worked examples
| Situation | Calculation | TDS |
|---|---|---|
| Resale flat in Gurugram: agreement ₹85 lakh, stamp duty value ₹92 lakh | 1% of the higher value (₹92 lakh) | ₹92,000 |
| Plot in Noida: price ₹46 lakh, stamp duty value ₹48 lakh | Both below ₹50 lakh | Nil |
| Flat in Greater Noida West: base price ₹80 lakh plus GST, four instalments of ₹20 lakh each | 1% of each instalment’s base amount | ₹20,000 per instalment (₹80,000 in total) |
| Couple buys a ₹80 lakh flat in Delhi, 50:50 share | Each deducts 1% of their ₹40 lakh share | ₹40,000 each (₹80,000 in total) |
In the first example, if you pay the seller ₹85 lakh in one go, you hold back ₹92,000 and hand over ₹84,08,000. The ₹92,000 goes to the government in the seller’s name.
The ₹50 lakh test is on the whole property
Since 1 October 2024, the ₹50 lakh threshold is checked on the total value of the property, not on each buyer’s share. Two buyers each paying ₹30 lakh for a ₹60 lakh flat still have to deduct TDS. Each deducts 1% of their own share, which is ₹300 per ₹30,000… in rupees, ₹3,000 each.
The threshold is “₹50 lakh or more”, so a deal at exactly ₹50 lakh is covered. The ₹50 lakh limit is also not tested per instalment. If the total deal is above the limit, even a small booking payment attracts TDS.
Step-by-step: how to pay the 1% via Form 141
- Collect PANs. Get the PAN of every seller and co-buyer, and check each one on the Income Tax portal. A wrong or missing PAN causes problems later. If the seller does not provide a valid PAN, the rate rises to 20%.
- Compute the base. Compare the agreement value (including parking, club and similar charges, excluding separately shown GST) with the stamp duty value. Use the higher one.
- Deduct 1% from the payment you make to the seller. Do this at every payment or credit.
- Log in to incometax.gov.in with your own PAN. As described by practitioners, you go to e-File, then e-Pay Tax, select the Income-tax Act, 2025 option, click New Payment and choose the Form 141 tile. The form is not on the pre-login screen.
- Choose Schedule B (sale or transfer of immovable property) and enter the month of deduction.
- Fill in the details. You will need property address, stamp duty value, consideration, agreement date, and the PAN, name and percentage share of each buyer and seller. Shares on each side should add up to 100%.
- Pay online through the payment options offered, and save the acknowledgement.
- Download Form 132 from TRACES (tdscpc.gov.in) once the filing is processed, and give it to the seller.
Portal screens change from time to time, so treat the menu path above as a guide rather than a fixed script.
Deadlines: Form 141 and Form 132
You must file Form 141 and deposit the tax within 30 days from the end of the month in which you deducted it. The Form 132 certificate is due within 15 days from the due date of Form 141, not from the day you actually file.
Here is an illustration. Say you pay the seller on 12 November 2026. Counting 30 days from 30 November, Form 141 is due by 30 December 2026. Form 132 is then due to the seller by 14 January 2027. Check your own dates carefully, because months differ in length.
What Form 132 does for the seller
Form 132 is the TDS certificate. It replaced Form 16B. It proves that tax was deposited on the seller’s behalf, so the seller can claim credit for it. It can only be generated after Form 141 has been filed and processed. A certificate not downloaded from TRACES should not be treated as valid.
Joint buyers and joint sellers
Joint cases are where mistakes happen most often.
- Joint buyers: Each buyer deducts 1% on the share they pay. The buyers can agree their shares by mutual consent, and they do not have to be equal.
- Joint sellers: TDS for each seller is 1% of that seller’s share of the consideration. Collect every seller’s PAN.
- Filing under the old 26QB: One form was needed for every buyer and seller pair. Two buyers and two sellers meant four forms.
- Filing under Form 141: Reports say one buyer can list several sellers in a single form, with percentage shares. One report says each buyer still files their own form. Another says multiple buyers and sellers can go in a single filing. Sources do not fully agree, so confirm how the portal handles co-buyers before you file.
Penalties and interest if you slip
| Default | Consequence (as reported) |
|---|---|
| TDS not deducted on time | Interest at 1% per month or part of a month |
| TDS deducted but not deposited on time | Interest at 1.5% per month or part of a month |
| Late filing | Fee of ₹200 per day, capped at the TDS amount. Under the 2025 Act, reports place this under Section 427 |
| Not filing the statement (old Act) | Penalty of ₹10,000 to ₹1 lakh under Section 271H |
The Section 271H penalty may be waived if you pay the TDS, interest and late fee and file within one year of the due date. We could not confirm the exact equivalent penalty provision under the 2025 Act, so ask your CA or check the portal.
A simple illustration: on ₹80,000 of TDS, a 30-day delay in filing means a ₹6,000 late fee at ₹200 a day. Interest of 1.5% for three months or part-months adds ₹3,600. Neither is large next to a property deal, but both can be avoided.
The seller also suffers. If the buyer does not file on time, the seller cannot claim the TDS credit in their return. That can cause disputes at the worst moment, such as during possession or a later sale.
Special cases to know about
Seller is a non-resident (NRI)
Different and much higher TDS rules apply to non-resident sellers under Section 393(2). The 1% rate does not apply. One change helps: from 1 October 2026, resident individual and HUF buyers purchasing from non-residents no longer need a TAN for this transaction and can use their PAN through Form 141 (Schedule E). The TDS itself is not removed. Get professional help for these deals.
Under-construction flats
You deduct on each payment made to the developer, including the booking amount. Keep separate records for each instalment. If you plan to buy a new launch, compare options across new projects in Gurugram, new projects in Noida or the New Delhi locality guide. Then check each payment schedule against the TDS rule.
A quick checklist before you pay
- Seller’s residential status and valid PAN confirmed.
- Agreement value and stamp duty value compared.
- Parking, club and other charges added; GST shown separately.
- Each payment’s TDS calculated and deducted.
- Form 141 filed by the due date, and Form 132 given to the seller within 15 days after it.
Still shortlisting? You can browse all projects on ADiHomes and filter by city and builder. Keep your final budget in mind: TDS is not an extra cost for you, since it is held back from the seller’s payment. But planning the cash flow around it avoids last-minute confusion.
What to do now
Treat TDS as part of the closing process, not an afterthought. Confirm the PANs, compute the base, deduct, file on time and hand over the certificate. If your deal has joint owners, an NRI seller or payments spread across the 1 April 2026 change, a short consultation with a chartered accountant is inexpensive compared with a notice later.
Frequently asked questions
Is TDS on property purchase applicable below ₹50 lakh?
No. TDS at 1% applies only when the consideration or the stamp duty value is ₹50 lakh or more. A deal where both values are below ₹50 lakh has no TDS under this provision.
Is Form 26QB still used?
Form 26QB applied to payments up to 31 March 2026. For payments on or after 1 April 2026, property TDS is reported through Schedule B of Form 141 under the Income-tax Act, 2025.
Who pays the 1% TDS, the buyer or the seller?
The buyer deducts it from the payment to the seller and deposits it with the government. The seller then claims credit for it in their income tax return.
Do I need a TAN to pay TDS on a property purchase?
No. For a resident seller, the buyer's PAN and the seller's PAN are enough. From 1 October 2026, resident individual and HUF buyers purchasing from non-resident sellers can also use a PAN-based route instead of getting a TAN.
What is the due date for paying TDS and issuing the certificate?
Form 141 must be filed and the tax deposited within 30 days from the end of the month in which TDS was deducted. Form 132, the certificate for the seller, is due within 15 days from that due date.
What if the seller has no PAN?
If the seller does not provide a valid PAN, TDS is deducted at 20% instead of 1%. It is best to collect and verify the PAN before you make any payment.
Do joint buyers each have to deduct TDS if their share is under ₹50 lakh?
Yes. Since 1 October 2024, the ₹50 lakh threshold is tested on the value of the whole property. Each buyer deducts 1% on their own share of the payment.
Sources
- TDS on Property Transactions: Transition from Form 26QB to Form 141 (TaxGuru)
- TDS on Property Transfers (From 01.04.2026): Forms 141 & 132 (TaxGuru)
- TDS on Property Transactions: Stepwise Guide with Form 26QB & 16B (Busy)
- Form 26QB: TDS on Property Purchase, Filing and Penalty (Ampuesto)
- How to File Form 141 (Schedule B): TDS on Purchase of Immovable Property (TaxRoutine)
- How to file Form 141 for TDS on Property Purchase on the Income Tax Portal (Quicko)
- Form 132 Income Tax Act 2025: Complete Guide to the New TDS Certificate (ClearTax)
- TDS on Property Purchase: Section 194-IA 1% on ₹50L (TaxGarden)
- Key Changes in Property TDS: Single Form 141 Replaces 26QB (Taxscan)
- TDS on Property from 1st April 2026: Form 141 Replaces 26QB (CAclubindia)
- Form 141 Explained: Replacement for Form 26QB, 26QC, 26QD and 26QE (GoForFiling)
- Two Buyers, One Seller, One Property: How Section 194-IA Applies (CalcGuru)
- Form 26QB Filing Guide: TDS on Property Purchase (LegalWiz)
- Form 141 & Form 132 — Unified TDS Challan & Certificate (CA Alok Kumar)
- TDS on Property Purchase from Non-Resident: New Rules 2026 (SetIndiaBiz)
Updated 20 October 2026. This article is general information, not legal or financial advice; check current rules and project details before you decide.
