You’ve finally started that major home renovation or hired a team of experts for a specialized project. The architect is on board, the interior designer has the plans ready, and the civil contractor is beginning the work. But as an individual, once your payments to these professionals cross ₹50 lakh in a year, you’re required to deduct 2% TDS.
For years, that meant following the requirements of Form 26QD. And if you hired multiple professionals, the process multiplied – hiring three experts meant filing three separate forms and making three separate TDS payments.
Happy to say that’s finally beginning to change.
The Income Tax Act, 2025 aims to simplify the tax system as new forms were added whenever provisions changed. So, similar forms existed for slightly different taxpayers and people had to remember which form applies to whom.
So, instead of multiple Form 26QD submissions depending on the number of deductees involved, you will now use a single, simplified declaration: Form 141 for specified transactions, including contractor and professional payments.
Here’s what has changed and how Form 141 compares with the old 26QD Form.
Why Form 141 was introduced?
Over time, a new form was introduced each time a specific TDS rule was added. This led to a fragmented filing system where similar transactions such as paying high rent, buying property, or hiring professionals required entirely different processes.
Form 141 streamlines this by consolidating multiple TDS reporting requirements into one filing framework. The form brings four key categories together under dedicated schedules in Part B:
- Schedule A – High-value rent: TDS on rent paid by individuals/HUFs not subject to tax audit
- Schedule B – Property purchases: TDS on the purchase of immovable property
- Schedule C – Contractor and professional payments: Payments for professional services or works contracts by individuals/HUFs not under tax audit
- Schedule D – Virtual Digital Assets (VDAs): TDS on transfers of crypto assets and NFTs
For deductor, Schedule C simplifies how transactions are reported for each contractor or professional. It introduces transaction-wise structured reporting table. So, instead of filing multiple forms, you simply list every person involved in the transactions in one place.
Difference between Form 26QD and Form 141
To understand how Form 141 simplifies these professional payments, here is a side-by-side comparison:
| Feature | Form 26QD | Form 141 |
|---|---|---|
| Applicability | Used only for TDS on contractual & professional services | Covers contractual & professional TDS (Schedule C) along with other specified payments |
| Filing (multiple deductees) | Separate forms for each deductee (contractor/professional) | Single form for all deductees (contractor/professional) |
| Tracking period | Based on Financial Year (FY) | Uses the Tax Year |
| Form structure | Standalone form for contractual & professional services | Consolidated form with dedicated schedules |
| Payment process | Separate challan payment for each form | One consolidated challan payment |
This makes contractual/professional services TDS filing more streamlined and easier to manage.
How these changes will help you?
For reporting TDS on contractual/professional services, Form 141 will help you in three clear ways:
1) No more multiple forms
Earlier, each deductee meant a separate filing. Now, one Form 141 covers all deductees in a transaction, reducing paperwork and filing time.
2) Lower risk of errors and tax notices
The form uses structured schedules and real-time validations linked with income tax database, reducing mistakes like incorrect PAN entries, or mismatched details.
3) One payment instead of many
Previously, every Form 26QD required a separate payment. Now, you make a single consolidated TDS payment.
What this means for taxpayers?
Here’s what to keep in mind:
- Form 141 applies to transactions from 1 April 2026 onward.
- You must file within 30 days from the end of the month in which TDS is deducted.
- The 2% TDS and the ₹50 lakh annual threshold based on transaction value stays the same, only the reporting format has changed.
We’ve attached the draft version of Form 141 below so you can get a head start on what the new format looks like.
Draft Form 141.pdf (1.3 MB)
If you want a deeper understanding of Form 141, we got you covered: What is Form 141? TDS return for property, rent, and other specified payments