At a Glance
When you purchase immovable property worth ₹50 lakhs or more, you must deduct TDS at 1% under Section 393(1), Table Sl. No. 3(i) and deposit it using Form 141 within 30 days from the end of the month of deduction. No TAN required — only PAN of buyer and seller.
What is TDS on Property Purchase?
Under Section 393(1), Table Sl. No. 3(i) of the Income Tax Act, 2025, any buyer of immovable property (excluding agricultural land) is required to deduct Tax Deducted at Source (TDS) at the time of making payment to the seller, if the total consideration is ₹50 lakhs or more.
This provision was introduced to track high-value property transactions and bring both buyers and sellers into tax compliance. The deduction should occur at the time of payment or credit to the seller, whichever is earlier.
What is Form 141?
Form 141 is a challan-cum-statement used for depositing TDS deducted on purchase of immovable property. It serves a dual purpose — it is both the TDS payment challan and the TDS return statement for the transaction.
It is filed and paid online through the Income Tax e-filing portal (incometax.gov.in) under the e-Pay Tax option. After successful payment, a Form 132 (Earlier Form 16B) (TDS certificate) must be issued to the seller within 15 days.
Key Parameters
| Parameter | Details |
|---|---|
| Applicable Section | Section 393(1), Table Sl. No. 3(i), Income Tax Act 2025 |
| TDS Rate | 1% of total sale consideration |
| Threshold Limit | ₹50 lakhs or more |
| Property Type | All immovable property except agricultural land |
| Form to File | Form 141 |
| Due Date | Within 30 days from end of month of deduction |
| TAN Required | No — PAN of buyer and seller is sufficient |
| TDS Certificate | Form 132 (Earlier Form 16B) — to be issued to seller within 15 days |
Documents Required to File Form 141
- PAN of the buyer and seller
- Aadhaar Card of buyer and seller
- Sales Deed details including property address and transaction value
- Bank account details for online payment
- Payment proof if already made
Three Key Areas of Compliance
| Documents & Registration | Forms | Deduction & Return Filing |
|---|---|---|
| PAN Card | Form 141 | TDS deduction when payment is done |
| Aadhaar Card | Form 132 (Earlier Form 16B) | Depositing TDS and filing returns |
| Sales Deed | ||
| TRACES Registration |
Step-by-Step Process to File Form 141
1
Access the Portal — Visit the Income Tax e-filing portal at incometax.gov.in → click on e-Pay Tax under the Services menu.
2
Select Form 141 — Click on TDS on Property (Form 141) option to begin the filing process.
3
Enter Required Details — Fill in PAN of buyer and seller, property address, type and total transaction value, date of agreement, and TDS amount.
4
Choose Payment Mode — Select Net Banking for online payment or Generate Challan for payment at an authorised bank branch.
5
Confirm and Submit — Upon successful payment a challan counterfoil with a Challan Identification Number (CIN) is generated. Save this number carefully.
6
Download Form 132 (Earlier Form 16B) — After 5 to 7 working days login to TRACES (tdscpc.gov.in) → Downloads → Form 132 (Earlier Form 16B) → enter Acknowledgement Number and Seller PAN → submit request → provide Form 132 (Earlier Form 16B) to seller within 15 days.
Special Rules for Multiple Buyers or Sellers
In cases involving multiple buyers or sellers, a separate Form 141 must be filed for each unique buyer-seller combination. The TDS must be paid at equal rates by all parties involved.
If property payment is made through instalments, TDS is deducted proportionally across each instalment at the time of payment.
When is Property NOT Treated as Agricultural Land?
A buyer is exempt from TDS if the property is genuine agricultural land. However, the following land will not be classified as agricultural and TDS will apply:
| Distance from Cantonment Board or Municipality | Population |
|---|---|
| Up to 2 kms | Minimum 10,000 but not exceeding 1,00,000 |
| Up to 6 kms | Minimum 1,00,000 but exceeding 10,00,000 |
| Up to 8 kms | Above 10,00,000 |
Penalty Charges for Non-Compliance
| Default | Penalty / Interest |
|---|---|
| TDS not deducted | Interest @ 1% per month u/s 201(1A) from date TDS was deductible |
| TDS deducted but not paid to government | Interest @ 1.5% per month u/s 201(1A) from date of deduction |
| Delay in filing Form 141 | ₹200 per day u/s 234E (max = TDS amount) |
| Penalty u/s 271H | ₹10,000 to ₹1,00,000 if return not filed within specified time |
| Form 132 (Earlier Form 16B) not issued to seller | Penalty u/s 272A |
Authorised Banks for TDS Payment
- State Bank of India, HDFC Bank, ICICI Bank, Axis Bank
- Bank of Baroda, Punjab National Bank, Canara Bank, UCO Bank
- Union Bank of India, Indian Bank, IDBI Bank, Bank of Maharashtra
- Indian Overseas Bank, Central Bank of India, Punjab and Sind Bank
- Bank of India, Jammu and Kashmir Bank, United Bank of India
How to Download Form 132 (Earlier Form 16B) from TRACES
1
Visit the official TRACES website at tdscpc.gov.in and register or login using PAN details.
2
Go to Downloads → select Form 132 (Earlier Form 16B) option.
3
Provide all transaction details — Assessment Year, Acknowledgement Number and PAN of the seller. Then proceed.
4
Click Submit Request and note down the download request number.
5
Navigate to Requested Downloads and search using the download request number to locate and download Form 132 (Earlier Form 16B).
Common Mistakes to Avoid
- Incorrect PAN entry — Always verify PAN of both buyer and seller before submitting to prevent future discrepancies
- Delayed filing — Filing Form 141 beyond the 30-day period attracts ₹200 per day penalty
- Multiple buyers or sellers — Separate Form 141 must be filed for each unique buyer-seller combination
- Forgetting Form 132 (Earlier Form 16B) — Many buyers forget to provide Form 132 (Earlier Form 16B) to the seller which causes issues in the seller's ITR
- NRI Seller — Different rules apply when the seller is an NRI — higher TDS rate applies under Section 195.
- Agricultural land exemption — Verify whether the land genuinely qualifies as agricultural before assuming exemption
Key Takeaways
- TDS at 1% applies on property purchase of ₹50 lakhs or more
- No TAN required — only PAN of buyer and seller
- File Form 141 within 30 days from end of month of payment
- Issue Form 132 (Earlier Form 16B) to seller within 15 days of filing
- Separate Form 141 required for each buyer-seller combination
- TDS deducted on each instalment in case of part payments
- Non-compliance attracts interest, late fees and penalties
Need Help with Form 141 Filing?
Our team handles TDS computation, Form 141 filing and Form 132 (Earlier Form 16B) generation completely. Reach out for a free consultation.
Book a Free Consultation →Frequently Asked Questions
TDS on property purchase is a tax deducted at source under Section 393(1), Table Sl. No. 3(i) of the Income Tax Act, 2025. When a buyer purchases immovable property valued at ₹50 lakhs or more, they are required to deduct 1% TDS at the time of payment to the seller and deposit it with the government using Form 141.
Yes. If the total consideration of the immovable property (other than agricultural land) is ₹50 lakhs or more, the buyer is required to deduct TDS at 1% and file Form 141 within 30 days from the end of the month in which TDS was deducted.
The TDS rate is 1% of the total sale consideration under Section 393(1), Table Sl. No. 3(i). This rate applies on the entire transaction value, not just the amount exceeding ₹50 lakhs. For example, if the property is worth ₹60 lakhs, TDS of ₹60,000 (1% of ₹60 lakhs) must be deducted.
If TDS is not deducted, interest at 1% per month is charged under Section 201(1A) from the date TDS was deductible to the date of actual deduction. Additionally, penalty under Section 271C equal to the TDS amount may also be imposed.
In case of joint buyers or sellers, a separate Form 141 must be filed for each unique buyer-seller combination. Each buyer must deduct and deposit TDS proportionate to their share of the consideration.
Failure to deduct TDS makes the buyer liable to pay the undeducted TDS amount along with interest at 1% per month u/s 201(1A). The buyer may also be treated as an assessee in default and face penalties under Section 271C.
TDS is applicable on the full transaction value, not just the amount exceeding ₹50 lakhs. If the property value is ₹60 lakhs, TDS of 1% is deducted on the entire ₹60 lakhs i.e. ₹60,000.
Yes. Corrections in Form 141 can be made online through the TRACES portal. Corrections for PAN, amount, property details etc. can be requested. However, there are limits on the number of corrections permitted.
No. TAN (Tax Deduction Account Number) is not required for filing Form 141. The PAN of both the buyer and the seller is sufficient to file and pay TDS on property purchase.
After 5 to 7 working days of filing Form 141, login to the TRACES portal at tdscpc.gov.in. Go to Downloads, select Form 132 (Earlier Form 16B), enter the Acknowledgement Number and Seller PAN, and submit the request. Download Form 132 (Earlier Form 16B) once generated and provide it to the seller within 15 days.
If the seller does not provide PAN, TDS must be deducted at a higher rate of 20% instead of 1% under Section 206AA. It is therefore essential to obtain the seller's PAN before completing the property transaction.