TDS on buying property in India: 1% and Form 141

The rule

• What is covered: “any consideration for transfer of any immovable property (other than agricultural land)”. Immovable property means any land (other than agricultural land) or any building or part of a building (s. 402(19)).
• Who deducts: the buyer (any person, with a limited carve-out of persons who deduct under another serial number).
• Rate: 1% of “consideration for transfer of the immovable property; or stamp duty value of such property, whichever is higher”.
• Threshold: ₹50 lakh. The Act (Note 3 to the table) says “equal to or greater than fifty lakh rupees”: follow the Act. The portal’s Form 141 help says tax is deducted “only if value exceeds INR 50 Lakh”, which differs at exactly ₹50 lakh.
• What counts as consideration: it includes charges for club membership, car parking, electricity or water facility, maintenance and advance fees, and similar charges incidental to the transfer (s. 402(9)).
• Several buyers and sellers: the consideration for the threshold is the total paid by all buyers to all sellers (Note 1). In Form 141 each buyer files a separate form for their own share.
• Law in force: events up to 31 March 2026 fall under the 1961 Act; events on or after 1 April 2026 fall under the 2025 Act (portal FAQ).

Step by step

1. Get the seller’s PAN. Every person entitled to receive the amount must furnish a valid PAN. Without it, tax is deducted at the higher of the rates, which can be 20% (s. 397(2)).
2. Deduct 1% at each payment. If you pay in instalments, you deduct from each payment. Form 141 has options for first, subsequent and last instalment, and for the last instalment it uses the higher of the proportionate stamp duty value or the cumulative amount paid.
3. Pay and file Form 141 online, with your PAN login, at the income tax e-filing portal: e-File, e-Pay Tax, Income Tax Act 2025, New Payment, Form 141, Schedule B. You do not need a TAN as a person deducting under Table Sl. No. 3(i) (s. 397(1)(c)(i)).
4. Deadlines: pay “within 30 days from the end of the month in which the deduction is made”, and file the challan-cum-statement “within one month from the end of the month in which tax is deducted” (portal FAQ). The form has fields for interest and fee where applicable; their rates are not stated in the pages read.
5. Certificate for the seller: the TDS certificate is downloaded from the TDS-TRACES portal. The pages read do not name the certificate form under the new Act; the seller asks the buyer for it, and it appears in the seller’s tax record.

Form 141 asks for the property address, the agreement date and registration date, the total stamp duty value and total consideration (not proportioned), each buyer’s and seller’s share, and the PAN of each seller.

If the seller is a non-resident

Form 141 Schedule B applies to resident sellers only. For a non-resident seller, tax is deducted under s. 393(2), Table Sl. No. 17 at “rates in force” on the sum chargeable, whether or not the seller has a place of business in India. From 1 October 2026 a resident individual or resident HUF buyer files Schedule E of Form 141 for this case. There is no single prescribed rate: it depends on the transaction, the PAN and any lower or nil deduction certificate under s. 395. See NRI selling property: TDS.

Related buyer tax rule

If the stamp duty value is higher than the price by more than the higher of ₹50,000 or 10% of the price, the excess is taxed as the buyer’s income (s. 92(2)(m)(ii)). See agreement for sale and sale deed.

Which professional to consult

A chartered accountant or a property lawyer (advocate) enrolled with the State Bar Council can confirm whether the seller is resident and compute the deduction. This guide states the published rule and is not tax advice. See property lawyers.