TDS for Property/Rental Payment/VDA/Professional & Contractor Payments u/s 393(1) : Know how to File Form 141

Buying a property is a landmark for many, but it also brings specific statutory responsibilities. The days of filing Form 26QB are over; enter the newly introduced Form 141. A person (tenant/buyer/payer/buyer of VDA) who is deducting tax at source under the specified provisions of Income-tax Act, 2025 is required to file this form.

If you are navigating a property purchase or payments to contractors or professionals or rental payment, then you need to comply with the mandate under Section 393(1). This article details the filing of Form 141.

What has Changed?

Under the erstwhile Income-tax Act, 1961, TDS on the purchase of immovable property was governed by Section 194-IA and reported using Form 26QB. The Income-tax Act, 2025, has simplified this by consolidating multiple PAN-based TDS statements (including the old 26QB, 26QC, 26QD, and 26QE) into a single, unified document: Form 141.

Governed by Section 393(1) and Rules 218 & 219 of the Income-tax Rules, 2026, Form 141 functions as a "challan-cum-statement." This merges two tasks, that is depositing the tax and reporting the transaction details into one.

Applicability:

The form shall be applicable for the transactions pertaining to Tax Year 2026- 27 onwards.

1. For Rental Payment: You Need Schedule A
2. For Transfer of property: You Need Schedule B
3. For “TDS on payment made by Individual / HUF to Contractor / Professionals: You Need Schedule C
4. For TDS on payment made by Individual/HUF on transfer of Virtual Digital Asset (VDA): You Need Schedule D

Note: A single Form No. 141 is sufficient for multiple transactions of the same nature having the same month of deduction. Transactions with different months of deductions cannot be clubbed in a single form. However, Single form should not be used for filing all transactions. You have to file for each transaction separately. That is Each Form No. 141 is meant for one transaction type only, and therefore only one schedule may be filled per filing.

Key Relief: You do not need to apply for a Tax Deduction and Collection Account Number (TAN) to complete this process. Form 141 is PAN-based, meaning you only need your PAN and the seller's PAN to ensure full compliance.

Error correction: A correction statement may be filed to rectify errors in any schedule within two years from the end of the tax year in which such statement is required to be delivered.

Late Fee: Late fee under section 427 of Income-tax Act, 2025 shall be levied for delay in filing the form.

If Deductee PAN is invalid or incorrect: In such cases, credit will not be reflected in the deductee’s ATS/ Form 26AS and the deductor will be liable to deduct tax at a higher rate, wherever applicable.

Threshold limits for different nature of payments in Form No. 141

Also read: From Form 10F to Form 41: India’s New Income Tax DTAA Compliance Era

Step-by-Step Guide to Filing Form 141

Filing Form 141 is an online-only process that must be completed after logging in. Here is the operational breakdown:

Step 1: Access the e-Pay Tax Module: Log in to your e-Filing portal account using your PAN and password. On your dashboard, navigate to the e-File menu and click on e-Pay Tax. You will be directed to an Act Selection screen. Ensure you select the "Income Tax Act 2025" for current transactions.

Step 2: Generate a New Challan (CRN): On the e-Pay Tax page, click on the New Payment button. From the list of available tax payment tiles, locate and click Proceed on the tile explicitly labeled Form 141 [Challan-cum-statement of deduction of tax under section 393(1)].

Step 3: Select the Deductee Type: A pop-up prompt will ask you to identify the nature of the seller (the deductee). If the seller is a registered company, select "Corporate Deductee." If they are an individual or HUF, select "Non-Corporate Deductee."

Step 4: Choose the Right Schedule

Step 5: Fill in the Transaction Details: - The details may vary as per the transaction nature.

Step 6: OTP Verification and Payment After reviewing the entered details, proceed to OTP verification using your registered mobile number. Once your identity is successfully verified, choose your preferred payment method to deposit the TDS amount.

After successful payment completion, the portal will generate a Challan Receipt containing a Challan Identification Number (CIN) and a BSR code. It is advised to keep this receipt secure as it is the proof of compliance.

Thus, the old forms have been replaced. Instead of filing Forms 26QB, 26QC, 26QD, and 26QE, it is advised to file Form 141 with the assistance of a tax professional.

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