Form 141 Introduces Schedule E for Property Transfers by Non-Resident Sellers

Changes in Form 141 – Inclusion of TDS on transfer of immovable property by Non Residents sellers to resident buyer

Summary: The Central Board of Direct Taxes (CBDT), through its notification dated 22nd September 2026, has expanded Form 141 to cover TDS on transfer of immovable property by a non-resident seller to a resident buyer from 1st October 2026. Earlier, purchase of property from an NRI seller involved obtaining TAN, deducting and depositing TDS under the regular procedure, filing quarterly Form 27Q and subsequently issuing the TDS certificate. The revised Form 141 substantially simplifies this process by providing a unified mechanism for property transactions involving both resident and non-resident sellers. For non-resident sellers, Schedule E captures transaction details and requires information relating to PAN, tax residency, Tax Identification Number, nature of capital gain, lower deduction certificate, Form 145 and the seller’s tax regime. Transitional details of Form 27Q statements filed before 1st October 2026 are also required where instalments straddle the old and new procedures. The change removes the TAN requirement for covered transactions after 1st October 2026 and reduces the compliance burden on resident buyers purchasing immovable property from NRI sellers.

Situation before 1^st October 2026 –

Earlier under Income Tax Act 1961 the process for payment of TDS was based on the residential status of the sellers and was different for NRI and residents as explained below –

A) Compliance for buyers where seller is a Resident –

The compliance for residents was simple where only single return cum challan form 26QB was required to be filed online followed by the TDS payment. It contains details of Seller, Details of buyer, PAN details, Aadhar Number, Property details, Transaction Amounts and TDS amount. Once processed deduction certificate and a statement of deduction was issued by the Income Tax department.

B) Compliance for buyers where seller is a Non-Resident –

The compliance process becomes complex where seller was NRI. The buyer was required to obtain a TAN and deduct the TDS as per the regular TDS payment due dates. Buyer was required to file a 27Q TDS statement which is a quarterly compliance. Then once 27Q is processed buyer was able to issue the TDS deduction certificate to the NRI seller.

What has changed from 1^st October 2026 –

Under Income Tax Act 2025, a Form 141 was made available replacing the old 26QB form from 1^st April 2026. Now the Form 141 has been expanded to provide for deduction and payment of TDS on purchase of immovable property from NRI sellers.

Now the requirement of getting TAN for TDS deduction on buying immovable property from NRI seller is replaced by the Form 141, now TAN is not required for these transactions after 1^st October 2026. The unified form 141 now covered both transactions where seller is resident and where seller is non-resident.

Below is the process and details of new fields and information required under form 141.

1) Selection of residential status of deductee –

The buyer has to select the residential status of the deductee as non-resident or a resident.

2) Selection of appropriate schedule –

Once the buyer selects deductee status as non-resident it unlocks the Schedule E for providing the details of transfer of immovable property. In case of Resident seller Schedule, A, B, C, D.

3) Details of statements filed before 1^st October 2026 (Transition) –

In case where payments are in instalments and few instalments were paid as per old process under TAN. A 27Q TDS return was filed. Form 141 mandates providing the details of such previous statement’s Acknowledgment number.

4) PAN, Tax Residency and Tax Identification Number –

Then comes the option to provide PAN, TRC, TIN details of Non-resident seller in the form. Now PAN field is kept mandatory. Buyer has to select the same as per the Tax Rate selected for the transaction.

A) If PAN is available you can enter the same

B) If PAN is not available you can mention as “PANNOTAVBL” (Higher rate) or

C) You can provide details of Tax Residency, Tax Identification Number where lower rate of TDS is applied while deduction of TDS as per rule 217.

5) Classification of nature of Capital Gain –

Now additionally the form 141 require buyer to select the type of capital gain in the hands of seller. Such as Long-term capital gain or short-term capital gain.

6) Lower Tax Rate Certificate –

The buyer is also required to provide details where the seller has applied and provided the lower deduction certificate. Buyer to select Yes or no and accordingly enter the acknowledgment number in respective field.

7) Form 145 details –

An option if provided to update the acknowledgement number of form 145 if the same is applicable for this transaction.

8) Tax Regime of the seller –

Buyer is required to declare whether the seller has chosen to opt out of section 202(1) for the relevant tax year. (Tax Regime)

9) Other information –

Other details and requirement of information under new unified form 141 are more or less the same as it was under form 26QB for resident sellers, such as,

• Transactions amount,
• Stamp duty value,
• Seller and buyer address,
• Payment in instalment or lumpsum
• Address of buyer
• Address of seller
• Percentage share of buyer
• Percentage share of seller
• Agreement Date & registration date
• TDS, Interest and Fees

Conclusion –

The inclusion of specified non-resident immovable property transaction in substantially reduces the compliance burden for the resident buyers with new simple process of form 141 replacing TAN and quarterly TDS statements in form 27Q. This is beneficial to both the buyers and the NRI seller.