NRI Property Purchase TDS Moves to Form 141 (Schedule E) From 1 October 2026
From 1 October 2026, a resident individual or HUF who buys immovable property from a non-resident can deposit and report the TDS through Form 141 — the PAN-based challan-cum-statement — using the new Schedule E. CBDT made the change through the Income-tax (Fifth Amendment) Rules, 2026 (Notification No. 121/2026, G.S.R. 830(E), dated 22 September 2026).
Until now Form 141 covered only TDS on property bought from a resident seller, rent, contract and professional payments, and virtual digital assets. Purchases from an NRI seller sat outside it, which pushed individual buyers towards the TAN-based TDS route for a one-off deal.
What changed
- Rules 215, 218 and 219 of the Income-tax Rules, 2026 now include deduction under section 393(2) [Table Sl. No. 17] where a resident individual or HUF pays or credits consideration for the transfer of immovable property.
- Form 141 gets a new Schedule E in Part B and a new transaction option: transfer of immovable property by a non-resident to a resident individual or HUF.
- Form 132, the consolidated TDS certificate, gets the matching option, so the seller’s certificate comes through the same system.
Who it covers — and who it does not
- Covered: a buyer who is a resident individual or HUF purchasing land (other than agricultural land), a building or part of a building from a non-resident seller.
- Not covered: companies, LLPs, firms and other buyers. The Income Tax Department’s Form 141 FAQ says they continue to report through the applicable TAN-based TDS statements.
- Joint buyers: each buyer files a separate Form 141 for their own share.
What Schedule E asks for
- Property: address, type, date of agreement, date of registration (if available), stamp duty value and total sale consideration.
- Buyers and sellers: PAN, name and each person’s share of the consideration. For a non-resident seller, contact number, email and overseas address are mandatory whether or not the seller has a PAN.
- Seller without PAN: the Tax Residency Certificate number and the foreign Tax Identification Number, which the notes link to avoiding deduction at a higher rate.
- Payment: lump sum or instalment — first, subsequent or last — with the previous acknowledgement number for later instalments.
- Tax: type of capital gain, amount paid or credited, rate applied, any lower or nil deduction certificate number under section 395, tax deducted (including surcharge and cess) and date of deduction.
- Remittance link: the acknowledgement number of the related Form 145 (the successor to Form 15CA), where applicable.
Key dates
| Step | Timeline (official FAQ) | For a deduction made in October 2026 |
|---|---|---|
| Schedule E available | From 1 October 2026 | — |
| Deposit the TDS | Within 30 days from the end of the month of deduction | By 30 November 2026 |
| File Form 141 | Within one month from the end of the month of deduction | By 30 November 2026 |
| Seller’s certificate (Form 132) | Download from TRACES after filing | After deposit and filing |
On the e-filing portal the route is e-File → e-Pay Tax → Income Tax Act 2025 → New Payment → Form 141, after logging in with the buyer’s own PAN.
What it does not change
- The duty to deduct. Schedule E changes how the TDS is deposited and reported, not whether it is deducted or at what rate. There is no single rate across Form 141; it depends on the provision, the seller’s status and any certificate.
- Corrections. A filed Form 141 is corrected only on TDS-TRACES, not on the e-filing portal.
- The seller’s side. The NRI seller’s own tax position, return and remittance paperwork are separate from the buyer’s Form 141.
What to do now
- Confirm residential status of both sides before the first payment — Schedule E applies only where the buyer is a resident individual or HUF and the seller is a non-resident.
- Collect the seller’s details early: PAN if any, overseas address, contact details, TRC and foreign tax ID. Missing details can change the deduction.
- Diarise each instalment. Every payment needs its own deposit within 30 days of the month-end, and later instalments quote the earlier acknowledgement number.
- Register on TRACES as a taxpayer so you can download Form 132 for the seller and make any correction.
Buying property from an NRI?
TAXAJ handles TDS compliance for buyers and NRI tax filing for sellers, including lower-deduction certificates. If the seller needs a TRC or Form 41, read Form 10F is now Form 41: TRC, PAN and paying a foreign party. More updates are on our income tax news page.
Source: CBDT Notification No. 121/2026 dated 22 September 2026 and the Income Tax Department’s Form 141 FAQ. Last updated 19 October 2026. This is general information, not advice on any particular transaction.
