TDS on Property Purchase: Section 393(1) (old 194IA)

Most property buyers do not know they are legally required to deduct 1% TDS from the payment to the seller and file Form 141 (old Form 26QB). This is one of the most commonly missed TDS obligations in India.

Who files Form 141 (old Form 26QB): The BUYER. Not the seller, not the builder, not the bank. Even if you take a home loan, you (the buyer) must deduct 1% and file Form 141 (old Form 26QB). Multiple sellers: If husband and wife both sell jointly, separate Form 141 (old Form 26QB) for each seller. Each Form 141 (old Form 26QB) is for their respective share (typically 50% each). Two 26QBs, each at 0.5% of total = 1% total. Multiple payments: If you pay ₹10L booking, ₹40L on registration, ₹30L balance, file a separate Form 141 (old Form 26QB) for EACH payment within 30 days of that payment. Threshold ₹50L is TOTAL, not per payment. NRI seller: Section 393, Income-tax Act 2025 (old Sec 195) applies instead of Sec 393(1) Table Sl. No. 3(i) (old Sec 194IA). TDS rate is 20-30% (LTCG or STCG rate). CA essential for NRI seller transactions. Form 141 (old Form 26QB) filing: incometax.gov.in → e-Pay Tax → TDS on Property (Form 141, old Form 26QB). Fill buyer PAN, seller PAN, property address, consideration, payment date. Pay online. Form 132 (old Form 16B) downloadable from TRACES portal 5-7 days later.