Property TDS Default / Demand Resolution

Income-tax Act, 2025, Section 393(1) — Property TDS Default/Demand Resolution:
Property-purchase TDS obligations for resident sellers are governed by the Income-tax Act, 2025's unified challan-cum-statement framework under Section 393(1) (Form 141, Schedule B, effective 1 April 2026, replacing the erstwhile Form 26QB filed under Section 194-IA of the Income-tax Act, 1961); for non-resident sellers, the separate Form 144 pathway (with a Form 131 certificate) applies instead of Form 141/Schedule B.
A default or demand typically arises from non-deduction, short-deduction, late deposit of tax deducted, or late/incorrect filing of the Form 141/Schedule B (or Form 144) statement. Resolution work under this service includes identifying the correct pathway that should have been used (resident Form 141/Schedule B vs. non-resident Form 144/Form 131 — a common source of error given the similarity of the underlying transactions), filing the correct or corrected statement, and responding to the demand raised on the TDS portal.
The specific interest/penalty section numbers and rates applicable to a property-TDS default under the Income-tax Act, 2025 (as distinct from the erstwhile Sections 201(1A)/234E of the Income-tax Act, 1961) have not been independently verified against a first-party source this round, and should be confirmed against the applicable provision before being cited as a specific figure in client communication.

We review TDS defaults arising from Form 141 Schedule B, Form 132 certificate issues or non-resident property TDS filings and prepare a correction plan. This includes interest/late fee computation, payment matching, correction requests and communication support with buyer/seller stakeholders.