TDS on Buying a Flat Under the New Tax Law: How Mumbai Buyers File Form 141 Under Section 393(1)

The sale deed is ready, the cheque amounts are agreed, and then the seller's chartered accountant asks a question the buyer did not expect: "Have you filed the TDS statement under the new Act?" For a Mumbai buyer paying more than Rs 50 lakh for a flat, that question now has a different answer from the one in older guides. Under the Income-tax Act, 2025, the e-filing portal routes property TDS through a challan-cum-statement called Form 141, under section 393(1), with its own schedule for property purchases.

This guide walks through what the Income Tax Department's own help pages say about Form 141 for property purchases, so that you can deduct, pay and report correctly the first time.

The short answer. When you buy immovable property from a resident seller, you as the buyer are the deductor, and you report the deduction in Schedule B of Form 141 under section 393(1), Table Sl. No. 3(i). The portal's help page says TDS is required only if the value exceeds Rs 50 lakh, and the taxable amount for a lump sum or last instalment is the higher of the amount paid and the seller's proportionate stamp duty value. You must pay the tax within 30 days from the end of the month of deduction and file the statement within one month from the end of that month. The trade-off: one form per buyer, per month and per deductee category means joint purchases create more filings, not fewer.

Who has to deduct TDS when you buy a flat?

You do, as the buyer. The e-filing help page on Form 141, the challan-cum-statement of deduction of tax under sections 393(1) and 393(2), states that the buyer or purchaser of the property is the deductor and the seller is the deductee. It describes Schedule B as covering TDS on transfer of immovable property under section 393(1), Table Sl. No. 3(i), and says Schedule B covers purchases from a resident seller.

The portal's step-by-step user manual adds that Form 141 applies only to resident deductees. If the seller is a non-resident, this schedule is not the route, and you should take professional advice before paying anything, because a different set of rules applies to that case.

Schedule B can be filed by all categories of assessees, subject to the Act. You do not need to be a business. A salaried buyer files it from their own PAN login.

When does the Rs 50 lakh threshold apply?

The Form 141 user manual on the e-filing portal carries a note under the Total Value of Consideration field: TDS is required to be deducted only if value exceeds INR 50 Lakh.

The same manual tells you how to enter values. You enter the total consideration or sale value of the property, even where there are multiple deductees, and you do not proportion the stamp duty value either. The form then works out a proportionate stamp duty value for each seller, and for a lump sum or last-instalment payment, the taxable amount is the higher of that proportionate figure and the amount paid in the transaction.

That stamp duty comparison matters in Mumbai, where the value fixed for stamp duty can differ from the agreed price. If the stamp duty value is higher, the TDS base follows it, not your agreement price. Keep the stamp duty value figure from your registration papers at hand, because the form asks for it.

How does the higher-of rule work with two sellers?

Here is an illustration using the manual's method, with round numbers. Suppose a flat is jointly owned by two sellers in equal shares. The agreed consideration is Rs 1.20 crore and the stamp duty value is Rs 1.30 crore. You pay each seller Rs 60 lakh as a lump sum.

You enter the total consideration of Rs 1.20 crore and the full stamp duty value of Rs 1.30 crore, without splitting either. The form computes each seller's proportionate stamp duty value at Rs 65 lakh. Because Rs 65 lakh is higher than the Rs 60 lakh actually paid to each seller, the taxable amount for each seller is Rs 65 lakh. The rate then applies to that amount.

The table sets out how the main variables change what you file.

What if there are joint buyers or joint sellers?

The help page is specific. Each deductor must file a separate Form 141 for their own share of the TDS-liable amount. A single deductor may file one Form 141 for multiple deductees only if all deductees fall in the same category, corporate or non-corporate, and the tax was deducted in the same month. If deductees fall in both categories, you file separately for each category, and if tax was deducted in different months, you file a separate form for each month. Each form covers only one type of transaction.

The deductee category depends on the seller's PAN. The help page says to select Corporate Deductee only when the fourth character of the PAN is "C", and Non-Corporate Deductee otherwise, and warns that a wrong selection may cause validation errors or incorrect reporting.

In the user manual, the first buyer row is filled automatically from the logged-in PAN, and additional buyers are added with names, addresses and shares, which must add up to 100 percent. For couples buying jointly, agree in advance who files what.

What are the deadlines, and how do you file?

Two clocks run from the same point. The help page says the deducted amount must be paid to the credit of the Central Government within 30 days from the end of the month in which the deduction is made, and the challan-cum-statement must be furnished within one month from the end of the month in which tax was deducted.

Filing is through your PAN login only. The help page sets out the path: log in, go to e-File, then e-Pay Tax, select Income Tax Act 2025, choose New Payment and then Form 141, and complete the form. After successful filing, you receive an SMS and email on your registered contact details, and you can view the filed form under Payment History. If it does not appear there, the page says to raise a grievance on the e-filing portal.

The manual also flags two details. If the seller's PAN is not available, a higher TDS rate auto-populates. And the form asks whether the seller holds a lower deduction certificate under section 395(1), which can change the rate you apply.

How do you fix a mistake or get the seller's certificate?

Not on the e-filing portal. The help page says corrections cannot be made there; you must use the TDS-TRACES portal, where you register as a taxpayer. The same page says the TDS certificate can be downloaded by logging into TDS-TRACES.

For a Mumbai resale, agree with the seller when you will hand over that certificate, and build the download into your closing timeline.

If you are also claiming a home loan interest deduction, our explainer on Section 22(2) and the Rs 2 lakh interest ceiling under the new Act covers the other new section number buyers need to know.

1. Confirm the seller is a resident, since Form 141 applies only to resident deductees, and take advice if not.
2. Collect each seller's PAN and note whether its fourth character is "C" to pick the right deductee category.
3. Get the stamp duty value for the flat before closing, because the taxable amount follows it if it is higher than the amount paid.
4. Ask each seller whether they hold a lower deduction certificate under section 395(1).
5. Deduct on each payment that attracts TDS and note the month of deduction for every instalment.
6. Pay and file Form 141 from your PAN login within the 30-day and one-month windows from the end of that month.
7. Download the TDS certificate from TDS-TRACES and hand it to the seller, keeping a copy with your sale deed file.

For what to check on the day you take possession, see our guide to taking possession of a Mumbai flat.

Frequently asked questions

Who deducts TDS when I buy a flat under the Income-tax Act, 2025?

The buyer. The e-filing portal's Form 141 help page says the buyer or purchaser of the property is the deductor and the seller is the deductee. The deduction is reported in Schedule B of Form 141 under section 393(1), Table Sl. No. 3(i), which covers purchases from a resident seller.

Is TDS needed on a flat costing below Rs 50 lakh?

The Form 141 user manual notes under the consideration field that TDS is required to be deducted only if value exceeds INR 50 Lakh. Enter the total consideration and the full stamp duty value without splitting either, and the form calculates the taxable amount per seller.

What is the deadline to pay and file property TDS?

According to the e-filing help page, the deducted amount must be paid to the credit of the Central Government within 30 days from the end of the month of deduction, and the challan-cum-statement must be furnished within one month from the end of the month in which tax was deducted.

How do joint buyers file Form 141?

Each deductor files a separate Form 141 for their own share of the TDS-liable amount. One deductor can cover multiple sellers in one form only if all are in the same category and the tax was deducted in the same month; otherwise separate forms are needed for each category and month.

Last updated 2026-11-14. PropNewz Team.