How it works
The buyer deducts 1% from each payment — including instalments to a builder — and files Form 141 with the seller's and buyer's PAN and property details. Where there are joint buyers or sellers, each buyer files for their share against each seller.
If the seller is a non-resident, the 1% rule doesn't apply; TDS is at capital-gains rates, usually on the full price unless the seller obtains a lower-TDS certificate. See NRI property sale.
Documents required
- PAN of all buyers and sellers.
- Sale agreement with consideration and payment schedule.
- Stamp duty value of the property.
- Details of each payment made.
How we handle it
Compute TDS
1% on the higher of consideration and stamp duty value, for each payment.
File Form 141
Pay and file within 30 days from the end of the month of deduction.
Issue Form 132
Download and give the certificate to the seller within the time allowed.
Correct errors
Wrong PAN or amounts corrected online.
A worked example
A resident buyer agrees to buy a flat for ₹80 lakh, with a stamp duty value of ₹82 lakh, paid in two instalments of ₹40 lakh each, in May and July. TDS is 1% of the higher value — ₹82,000 in all — deducted in proportion as each instalment is paid (₹41,000 each time). The May deduction is deposited with Form 141 by 30 June and the July deduction by 30 August. The seller receives a Form 132 certificate for each.
If TDS is paid or filed late
- Interest at 1% a month for failing to deduct, and 1.5% a month for deducting but not depositing.
- A late fee of ₹200 a day for the delayed statement, up to the amount of TDS.
- Notices from the department for defaults, which can be corrected online.
Practical notes from our engagements
- TDS on instalments missed. Each instalment to a builder attracts TDS when paid.
- Joint buyers filing one form. Each buyer files for their share, against each seller.
- 1% deducted from an NRI seller. Wrong rate — the buyer remains liable for the shortfall.
How we handle property TDS
We compute TDS for each payment, file Form 141 and issue Form 132, and fix errors or defaults from earlier purchases.
Related services
Frequently asked questions
What is the TDS rate on property purchase?
1% of the higher of the sale price and stamp duty value, when that is ₹50 lakh or more.
What replaced Form 26QB?
Form 141, from 1 April 2026. Deductions before that date use Form 26QB.
Does the buyer need a TAN?
No, for purchases from resident sellers. For purchases from non-resident sellers, from 1 October 2026 a resident individual or HUF buyer doesn't need one either; other buyers still do.
When is Form 141 due?
Within 30 days from the end of the month in which TDS was deducted.
What certificate does the seller get?
Form 132 (earlier 16B), within 15 days of the Form 141 due date.
Is TDS deducted on agricultural land?
No, agricultural land is excluded.
Is TDS deducted on the stamp duty value or the agreement value?
On the higher of the two, where either the agreement value or the stamp duty value is ₹50 lakh or more.