In a move to streamline tax filing, the Income Tax Department has introduced the new ‘Form 141’ for TDS. This new form eliminates the need for four different forms previously required for various TDS purposes.
Four Forms Replaced by One
Form 141 replaces the following four forms previously used for TDS reporting:
- Form 26QB: TDS on property purchases
- Form 26QC: TDS on rent payments
- Form 26QD: TDS on contractor or professional payments
- Form 26QE: TDS on virtual digital assets (e.g., crypto)
With the introduction of Form 141, taxpayers no longer need to fill out separate forms for these activities, making the process simpler.
Scope and Applications of Form 141
Form 141 will now cover TDS for payments exceeding ₹50,000 per month and property purchases above ₹50 lakh. It can also be used for reporting payments over ₹50 lakh made by individuals or Hindu Undivided Families (HUFs) in a financial year.
This new form will also handle TDS for virtual digital assets, including cryptocurrency and NFTs, as per Schedule D.
Required Information for Filing
When filling out Form 141, taxpayers must have the following details ready:
- PAN details for both the deductor and deductee
- Address, mobile number, and email IDs for both parties
- Transaction details based on the nature of services or payment method
Taxpayers can fill out Form 141 through the e-filing portal by selecting the relevant schedules under the e-pay tax section. After completing the form, they can make online payments and download the challan and details.
Major Change in Form Process
A significant change with Form 141 is that the number of forms will now be based on the buyer rather than the seller. This allows multiple seller details to be included in a single form, simplifying the process even further.
