How to Pay TDS on Property Purchase (1%) — Form 141 / 26QB and Form 16B

Step by step

1. 1

   Check the value

   Use the higher of agreement value and stamp-duty value; include parking and other charges forming part of the consideration.

2. 2

   Deduct at each payment

   Deduct 1% from every instalment, including the advance.

3. 3

   Fill the form

   e-Pay Tax → TDS on sale of property (Form 141) → buyer and seller PAN, property details, amounts.

4. 4

   Pay

   Pay online and save the challan-cum-statement acknowledgement.

5. 5

   Certificate to the seller

   Download the TDS certificate (Form 16B, or its replacement under the Income-tax Rules, 2026) from TRACES and give it to the seller.

Buying from an NRI?

Different rules apply: TDS at non-resident rates (12.5% plus surcharge and cess for long-term gains), generally on the full sale price unless the seller gets a lower-deduction certificate. The buyer needs a TAN and files the quarterly non-resident statement.

Common mistakes

• Deducting only on the final payment
• Not checking the seller's PAN status
• Using 26QB after the switch to Form 141

Frequently asked questions

Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.