Form 26QB Replaced by Form 141: Important Changes in Property TDS Compliance

From FY 2026-27 onwards, TDS reporting on purchase of immovable property has shifted from Form 26QB to the newly introduced Form 141 under the Income Tax Act, 2025. While the basic requirement of deducting tax on specified property transactions continues, the filing structure, reporting workflow, and post-filing compliance process have changed significantly.

Applicability Under the New Act

Under the Income Tax Act, 2025, TDS on purchase of immovable property is covered under:

Section 393(1) — Table Serial No. 3(i)

The threshold condition broadly continues on similar lines as earlier provisions. TDS becomes applicable where the consideration value or stamp duty value of the property is ₹50 Lakhs or more.

The higher of the two values becomes relevant for determining applicability.

Property Transactions Are Filed Under Schedule B of Form 141

Form 141 is now a consolidated challan-cum-statement covering multiple categories of specified payments. The form has been divided into separate schedules depending on the nature of transaction.

Schedule	Nature of Transaction
Schedule A	Rent Payments
Schedule B	Purchase of Immovable Property
Schedule C	Contractor / Professional Payments
Schedule D	Virtual Digital Assets (VDA)

For property purchase transactions, compliance must specifically be filed under Schedule B of Form 141.

Corporate and Non-Corporate Deductee Selection

One major structural change in the new workflow is classification of deductees as:

Corporate Deductee
Non-Corporate Deductee

This selection is mandatory during filing. If deductees belong to different categories, separate filings may be required because grouping is presently allowed only within the same deductee category.

NRI Transactions Continue Under Separate Workflow

At present, Form 141 Schedule B is applicable only where the seller is resident.

Where the seller is an NRI, the TAN-based mechanism continues until the proposed PAN-based system is introduced from 1 October 2026.

Accordingly, resident buyers purchasing property from NRI sellers are still required to:

Obtain TAN
Deduct TDS under section 396
Deposit TDS at applicable rates
File quarterly TDS return in Form 144

Under the new framework, Form 144 replaces the earlier Form 27Q.

Generally applicable rates are:

Nature	Indicative TDS Rate
Long Term Capital Gain (LTCG)	12.5% without indexation
Short Term Capital Gain (STCG)	Applicable slab rates

Multiple Buyers and Sellers Can Now Be Added

The new workflow now supports multiple buyers, multiple sellers, PAN-wise allocation, and ownership percentage sharing.

Buyers can now add:

Co-buyer PAN
Co-seller PAN
Ownership percentage

Based on entered percentages, the portal automatically computes buyer-wise and seller-wise allocation along with proportionate TDS amount.

Month of Deduction Becomes Important

Unlike the earlier Form 26QB workflow, Form 141 specifically captures the month of deduction.

Transactions having different deduction months cannot be clubbed into a single filing.

Therefore, taxpayers should carefully match:

Deduction month
Payment timeline
Agreement date

Form 132 Replaces Form 16B

Under the new framework, Form 16B is no longer applicable for property TDS transactions.

After successful processing of Form 141, the buyer must download the new TDS certificate in Form No. 132 from the TRACES portal.

          Form 132 must be issued to the seller within 15 days from the due date of filing Form 141.
        

Correction Workflow Has Changed

One important practical change relates to correction handling.

If incorrect details are entered in Form 141 such as:

Wrong PAN
Incorrect amount
Wrong ownership share
Challan mismatch

Corrections cannot presently be made directly through the e-Filing portal.

The deductor must register as a “Taxpayer” on the TRACES portal and process the correction request there.

Practical Compliance Checklist

Verify seller residency status before filing
Check whether Form 141 or Form 144 workflow applies
Confirm property value or stamp duty value exceeds ₹50 Lakhs threshold
Validate all PAN details carefully
Match deduction month correctly
Verify ownership percentages before allocation
Preserve ARN and challan copy immediately after submission
Download Form 132 from TRACES after processing
Issue Form 132 within prescribed timeline

Need Professional Assistance?

Property TDS Compliance, Corrections & Advisory Support

Assistance available for Form 141 filing, NRI property TDS compliance, TRACES correction handling, PAN mismatch resolution, co-owner allocation issues, and property transaction tax advisory.

Contact SSRA

The transition from Form 26QB to Form 141 is not merely a change in form number. The new framework is increasingly PAN-driven, allocation-based, and tightly integrated with TRACES processing. Accuracy at the time of filing has now become significantly more important than under the earlier workflow.