TDS on Property Purchase in Bengaluru 2026: Form 141 Replaces 26QB
Buying a flat above ₹50 lakh? You deduct 1% TDS and file Form 141, not 26QB. See the rate, deadline, joint buyer rules and a worked example.
Written by
Justin
16 October 2026 · 6 minutes read
TDS on Property Purchase in Bengaluru: How Form 141 Works in 2026
You are the buyer. Why are you the one who has to deposit the seller’s tax?
Most first-time buyers are surprised to learn that when they buy a property worth ₹50 lakh or more, they, not the seller, must deduct a small amount of tax from the payment and deposit it with the government. Imagine a buyer who pays the seller in full on registration day, and a week later the seller asks for the TDS certificate. The buyer has never heard of it. Fixing it after the fact means late fees and a delayed certificate, and the seller’s tax credit is held up in the meantime. This step is simple, but it has a deadline, and since 1 April 2026 it has a new form.
Quick answer
If you buy immovable property (not agricultural land) from a resident seller for ₹50 lakh or more, you deduct 1% TDS from the payment and deposit it using Form 141, Schedule B, which has replaced Form 26QB. The deposit and filing are due within 30 days from the end of the month in which you deduct. The seller receives a TDS certificate (Form 132, which replaced Form 16B). The 1% is worked out on the higher of the price or the stamp duty (guidance) value.
What changed from 1 April 2026?
Before 1 April 2026 | From 1 April 2026 | |
|---|---|---|
Law | Income-tax Act, 1961 | Income-tax Act, 2025 |
Section (resident seller) | Section 194-IA | Section 393(1), Table Sl. No. 3(i) |
Buyer’s form | Form 26QB | Form 141, Schedule B |
Certificate for the seller | Form 16B | Form 132 |
Rate, threshold, deadline | 1%, ₹50 lakh, 30 days | Unchanged |
When does the buyer have to deduct TDS?
All of these should be true:
You are buying immovable property such as a flat, house, shop, office or plot (not agricultural land).
The seller is a resident of India.
The value reaches ₹50 lakh, measured on the price or the stamp duty value.
For joint buyers, the threshold is checked on the total value of the property, not each buyer’s share.
What is the TDS base, and why does the guidance value matter?
The 1% is applied to the higher of the actual consideration and the stamp duty value (in Karnataka, the guidance value). So even if you negotiate a lower price, TDS is still based on the guidance value if that is higher. This is the same floor that applies to stamp duty, as in our registration cost guide.
Worked examples
Example A | Example B | |
|---|---|---|
Agreed price | ₹1,20,00,000 | ₹85,00,000 |
Guidance (stamp duty) value | ₹1,10,00,000 | ₹92,00,000 |
Higher of the two | ₹1,20,00,000 | ₹92,00,000 |
TDS at 1% | ₹1,20,000 | ₹92,000 |
Deposited by you with the government | ₹1,20,000 | ₹92,000 |
Paid to the seller (if paid in one go) | ₹1,18,80,000 | ₹84,08,000 |
These are illustrative. If the price is paid in instalments, as with builder flats, TDS applies to each payment as it is made. Check the treatment for your payment schedule with a chartered accountant.
How do I file Form 141? (8 steps)
Confirm the seller is a resident and collect their PAN before you pay.
Confirm the amount and the base. Compare the price with the guidance value, and take the higher.
Deduct 1% from the payment at the time you pay or credit the seller, whichever is earlier.
Log in to the income tax e-filing portal with your PAN. You use your PAN, not a TAN.
Open the e-Pay Tax section, choose the new Income-tax Act, 2025 payment option and select Form 141, Schedule B.
Enter the details: seller and buyer PAN, property details, price, stamp duty value and the tax deducted, and double-check each one.
Pay and file within 30 days from the end of the month in which you deducted.
Download the TDS certificate (Form 132) after processing, give it to the seller, and keep a copy.
The menu path and screens can change, so follow the live portal.
What if two of us are buying together?
The ₹50 lakh threshold is checked on the whole property. After that, each buyer files a separate Form 141 for their own share of the payment. Agree in writing before payment day who pays what, from which account, so that the filing matches who actually paid. Mismatches are the usual cause of corrections later.
What if the seller lives abroad?
TDS rules for a non-resident seller are different. There is no ₹50 lakh threshold, and TDS is deducted on the capital gain at the applicable rate, not at a flat 1%. Take specific advice before you pay, as covered in our NRI property guides. One recent change for individual and HUF buyers paying a non-resident seller: the requirement to obtain a TAN was removed from 1 October 2026, so a PAN is enough for the deposit.
What mistakes should buyers avoid?
Paying the full amount to the seller and forgetting to deduct TDS
Using the price and ignoring the guidance value when it is higher
Missing the deadline, which can attract late fees and interest
Wrong seller PAN or details, which delay the certificate and need correcting
Not giving the seller the certificate, which delays their tax credit
Assuming the seller’s category is the buyer’s problem. If they are an NRI, the rules change.
What should Bengaluru buyers check on top of this?
Resident or non-resident seller: confirm it before you agree the payment terms.
Guidance value: check it on the Kaveri portal, since it can raise both your stamp duty and your TDS.
Builder instalments: ask the builder’s PAN and ask how TDS will be handled on each instalment, and keep a record.
Your agreement: state that the seller or builder receives the payment net of TDS, to avoid disputes.
Papers: verify title and approvals, as in our legal opinion guide.
Frequently asked questions
Has Form 26QB been replaced for TDS on property purchase?
Yes. For payments on or after 1 April 2026, Form 141 (Schedule B) replaces Form 26QB under the Income-tax Act, 2025.
Who files Form 141 when buying a flat?
The buyer. The buyer is the deductor, the seller is the deductee, and the buyer gives the seller the TDS certificate.
What is the TDS rate on property purchase from a resident seller?
1%, where the price or stamp duty value is ₹50 lakh or more. The rate is applied to the higher of the two.
What is the deadline for depositing TDS and filing Form 141?
Within 30 days from the end of the month in which the tax is deducted.
Do joint buyers file one Form 141 or two?
Each buyer files a separate Form 141 for their own share. The ₹50 lakh threshold is checked on the whole property.
Is TDS payable if the property is below ₹50 lakh?
No, if both the price and the stamp duty value are below ₹50 lakh. If either reaches ₹50 lakh, TDS applies.
Is the rule the same if the seller is an NRI?
No. For non-resident sellers there is no threshold, and TDS is deducted on the capital gain at the applicable rate. Take specific advice.