CA RAMAKRISHNA SANJAY
TDS on Property Purchase: Transition from Form 26QB to Form 141 (Effective 1 April 2026)
Introduction
The Income Tax Department has introduced Form 141 to simplify reporting of TDS on property transactions. From 1 April 2026, Form 141 will replace Form 26QB for reporting TDS under Section 194-IA of the Income-tax Act. This change aims to make compliance easier, particularly in transactions involving multiple buyers and sellers.
What is TDS on Property Purchase?
Under Section 194-IA, any buyer purchasing an immovable property (other than agricultural land) must deduct 1% TDS if the sale consideration exceeds ₹50 lakh.
Key compliance points:
• TDS Rate: 1% of consideration
• Threshold: Applicable if property value is ₹50 lakh or more
• Time limit: TDS must be deposited within 30 days of deduction
• Earlier form: Form 26QB
• New form: Form 141 (effective 1 April 2026)
Why Form 141 is Introduced
Earlier, buyers had to file separate Form 26QB for every buyer–seller combination, which often
Important Rules Buyers Should Know
• TDS applies if total property value exceeds ₹50 lakh, even in joint purchase.
• Ownership share mentioned in the agreement determines TDS liability.
• GST should not be included while calculating TDS.
• Incidental charges such as parking, maintenance, club membership should be included in property consideration.
• Even if payment is made through housing loan, the buyer must deduct and deposit TDS.
Correction of Errors
If incorrect details are reported in Form 26QB or Form 141, corrections can be made through the TRACES portal. Timely correction ensures that the seller receives proper TDS credit and avoids tax disputes.
No comments:
Post a Comment