{"id":1666,"date":"2026-09-25T20:35:52","date_gmt":"2026-09-25T16:05:52","guid":{"rendered":"https:\/\/caalokkumar.com\/my-writing\/?p=1666"},"modified":"2026-09-25T20:35:54","modified_gmt":"2026-09-25T16:05:54","slug":"form-141-for-nri-property-purchase","status":"publish","type":"post","link":"https:\/\/caalokkumar.com\/my-writing\/form-141-for-nri-property-purchase\/","title":{"rendered":"Form 141 for NRI Property Purchase : No TAN, New PAN-Based TDS Rules from 1 October 2026"},"content":{"rendered":"\n

Major NRI Property TDS Change: Form 141 for NRI Property Purchase, No TAN & PAN-Based Filing from 1 October 2026<\/strong><\/h2>\n\n\n\n

Updated: 25 September 2026<\/strong><\/p>\n\n\n\n

A major procedural change is coming for anyone buying property in India from an NRI seller<\/strong>.<\/p>\n\n\n\n

CBDT has issued Notification No. 121\/2026 dated 22 September 2026<\/strong>, notifying the Income-tax (Fifth Amendment) Rules, 2026<\/strong>. The amendment comes into force from 1 October 2026<\/strong> and introduces a PAN-based challan-cum-statement mechanism for specified resident individual\/HUF buyers purchasing immovable property from a non-resident. Etds<\/a><\/p>\n\n\n\n

The practical change is significant:<\/p>\n\n\n\n

From 1 October 2026, an eligible resident individual or HUF buying immovable property from an NRI will no longer need to obtain TAN merely for this property transaction. The TDS will instead be reported through the expanded Form 141 using a PAN-based mechanism.<\/strong><\/p>\n\n\n\n

However, this does not<\/strong> mean that TDS on NRI property purchases has been abolished.<\/p>\n\n\n\n

TAN is being removed. TDS continues.<\/strong><\/p>\n\n\n\n

For the earlier position and transition up to 30 September 2026, also read our detailed update on TDS on Purchase of Property from NRI \u2013 TAN Required Till 30 September 2026<\/a>.<\/p>\n\n\n\n

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What Has CBDT Changed Through Notification No. 121\/2026?<\/strong><\/h1>\n\n\n\n

Notification No. 121\/2026 has amended the Income-tax Rules, 2026, including Rules 215, 218 and 219<\/strong>, and modifies Forms 132 and 141<\/strong>.<\/p>\n\n\n\n

The amendment specifically brings within the Form 141 framework tax deducted under Section 393(2), Table Serial No. 17<\/strong>, where a resident individual or HUF pays consideration for transfer of immovable property by a non-resident<\/strong>. The changes take effect from 1 October 2026<\/strong>. Etds<\/a><\/p>\n\n\n\n

The significance is best understood through this comparison:<\/p>\n\n\n\n

Particular<\/strong><\/td>Up to 30 September 2026<\/strong><\/td>From 1 October 2026<\/strong><\/td><\/tr>
Seller<\/td>Non-resident<\/td>Non-resident<\/td><\/tr>
Eligible buyer<\/td>Resident individual\/HUF<\/td>Resident individual\/HUF<\/td><\/tr>
TDS obligation<\/td>Continues<\/td>Continues<\/td><\/tr>
TAN for specified buyer<\/td>Generally required<\/td>Not required<\/strong><\/td><\/tr>
Identification<\/td>TAN-based compliance<\/td>PAN-based compliance<\/strong><\/td><\/tr>
Reporting mechanism<\/td>Existing non-resident TDS framework<\/td>Form 141 \u2013 new Schedule E<\/strong><\/td><\/tr>
Lower TDS certificate<\/td>Available<\/td>Continues under Section 395<\/strong><\/td><\/tr>
Form 145<\/td>Depending on applicability<\/td>Schedule E expressly captures acknowledgement where applicable<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

CBDT had earlier announced this simplification in the Budget 2026 FAQs. Notification 121\/2026 now prescribes the supporting rule and form changes necessary to implement it. Etds<\/a><\/p>\n\n\n\n

\n\n\n\n

Form 141 Gets a New Schedule E for NRI Property Transactions<\/strong><\/h1>\n\n\n\n

This is perhaps the most important part of the notification.<\/p>\n\n\n\n

Until now, Form 141 was designed around four PAN-based transaction categories involving resident deductees.<\/p>\n\n\n\n

The existing Income Tax Department user manual presently lists:<\/p>\n\n\n\n

Schedule A<\/strong> \u2013 Rent
Schedule B<\/strong> \u2013 Transfer of immovable property involving resident seller
Schedule C<\/strong> \u2013 Contractor\/professional payments
Schedule D<\/strong> \u2013 Virtual Digital Assets<\/p>\n\n\n\n

The existing portal guidance also currently states that Form 141 applies only to resident deductees<\/strong>. Income Tax Department<\/a><\/p>\n\n\n\n

But Notification No. 121\/2026 now inserts an entirely new:<\/p>\n\n\n\n

Schedule E \u2013 TDS on Transfer of Immovable Property by a Non-Resident<\/strong><\/h2>\n\n\n\n

This Schedule is specifically designed for a resident individual\/HUF buying immovable property from a non-resident seller under Section 393(2)<\/strong>. Etds<\/a><\/p>\n\n\n\n

Important transition point<\/strong><\/h3>\n\n\n\n

As of 25 September 2026<\/strong>, the existing online Form 141 user manual still describes the pre-1 October framework and says Form 141 cannot be used for a non-resident deductee. Income Tax Department<\/a><\/p>\n\n\n\n

That is not inconsistent with Notification 121\/2026 because the new notification becomes effective only from:<\/p>\n\n\n\n

1 October 2026<\/strong><\/h2>\n\n\n\n

Taxpayers should therefore expect the portal\/user guidance to be aligned with the notified Schedule E when the new mechanism becomes operational.<\/p>\n\n\n\n

For transactions before 1 October, the existing procedure should not be prematurely replaced with the new Form 141 mechanism.<\/p>\n\n\n\n

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What Information Will Form 141 Schedule E Capture?<\/strong><\/h1>\n\n\n\n

CBDT has designed the new Schedule E as substantially more detailed than a simple challan.<\/p>\n\n\n\n

It will capture information about the property, buyers, NRI sellers, capital-gain character, TDS rate, lower-deduction certificates and related Form 145 compliance<\/strong>. Etds<\/a><\/p>\n\n\n\n

Among the important fields are:<\/p>\n\n\n\n

Information required<\/strong><\/td>Why it matters<\/strong><\/td><\/tr>
Property address and property type<\/td>Identifies the asset being transferred<\/td><\/tr>
PAN\/details of all buyers<\/td>Allocates buyer-wise responsibility<\/td><\/tr>
NRI seller details<\/td>Identifies each non-resident deductee<\/td><\/tr>
Overseas address\/contact details<\/td>Establishes foreign-residence information<\/td><\/tr>
Tax Residency Certificate<\/td>Relevant to non-resident documentation<\/td><\/tr>
Foreign TIN<\/td>Additional overseas identification<\/td><\/tr>
Agreement\/registration date<\/td>Establishes transaction timeline<\/td><\/tr>
Stamp-duty value<\/td>Relevant for transaction reporting<\/td><\/tr>
Total sale consideration<\/td>Records gross transaction value<\/td><\/tr>
Lump-sum\/instalment details<\/td>Important for timing of deduction<\/td><\/tr>
Nature of capital gain<\/td>Long-term\/short-term classification<\/td><\/tr>
Amount liable to TDS<\/td>Identifies withholding base<\/td><\/tr>
TDS rate<\/td>Records actual deduction<\/td><\/tr>
Section 395(1) certificate<\/td>Lower\/nil TDS certificate obtained by seller<\/td><\/tr>
Section 395(2) certificate<\/td>Determination certificate obtained by buyer<\/td><\/tr>
Form 145 acknowledgement<\/td>Required where Form 145 is applicable<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The inclusion of these fields shows that the new system is not simply a replacement for TAN.<\/p>\n\n\n\n

CBDT is creating a transaction-level digital reporting trail<\/strong> for NRI property purchases.<\/p>\n\n\n\n

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Major New Link Between Form 141 and Form 145<\/strong><\/h1>\n\n\n\n

One particularly important field in new Schedule E deserves attention.<\/p>\n\n\n\n

CBDT has included:<\/p>\n\n\n\n

Acknowledgement number of the corresponding Form 145, if applicable.<\/strong><\/p>\n\n\n\n

This expressly connects the NRI property TDS process with the Form 145 reporting framework<\/strong> wherever Form 145 is applicable. Etds<\/a><\/p>\n\n\n\n

This is significant because Form 145 is the successor to the earlier Form 15CA framework for prescribed information relating to payments to non-residents.<\/p>\n\n\n\n

Therefore, practitioners should no longer look at property TDS and Form 145\/Form 146 as completely isolated compliance exercises.<\/p>\n\n\n\n

Depending upon the facts, the transaction trail may become:<\/p>\n\n\n\n

Property Agreement \u2192 Section 393(2) TDS \u2192 Section 395 Certificate, if applicable \u2192 Form 145, where applicable \u2192 Form 141 Schedule E \u2192 TDS Certificate \u2192 ITR\/Capital Gains \u2192 NRO Account \u2192 Foreign Repatriation<\/strong><\/p>\n\n\n\n

For the current foreign-remittance framework, see our detailed guide on Form 145 and Form 146 Filing \u2013 Latest CBDT Update 2026<\/a>.<\/p>\n\n\n\n

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TAN Is Removed \u2014 But TDS on NRI Property Is Not<\/strong><\/h1>\n\n\n\n

This distinction should be highlighted prominently because it is likely to cause confusion after 1 October.<\/p>\n\n\n\n

The amendment does not<\/strong> mean:<\/p>\n\n\n\n

No TAN = No TDS.<\/strong><\/p>\n\n\n\n

The substantive withholding obligation continues under Section 393(2)<\/strong>.<\/p>\n\n\n\n

What changes is primarily the procedural mechanism for a specified resident individual\/HUF buyer<\/strong>.<\/p>\n\n\n\n

CBDT’s Budget FAQ expressly explains that the objective is to reduce the compliance burden by allowing the buyer to deduct and report tax using PAN rather than first obtaining TAN. Etds<\/a><\/p>\n\n\n\n

For detailed buyer-side and seller-side professional support, refer to our dedicated TDS on Sale of Property \u2013 Resident & NRI Service<\/a>.<\/p>\n\n\n\n

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Do Not Apply the Normal 1% Property TDS Rule to an NRI Seller<\/strong><\/h1>\n\n\n\n

Another mistake to avoid is assuming that because the procedure is becoming PAN-based, the NRI property transaction has now become identical to a resident-seller property transaction.<\/p>\n\n\n\n

It has not.<\/p>\n\n\n\n

The normal resident-property TDS framework and the non-resident withholding framework remain different.<\/p>\n\n\n\n

For a non-resident seller, taxability and withholding must be examined under Section 393(2)<\/strong> and the relevant capital-gain provisions.<\/p>\n\n\n\n

The change from 1 October primarily concerns:<\/p>\n\n\n\n

TAN \u2192 PAN-based reporting through Form 141<\/strong><\/p>\n\n\n\n

It does not by itself convert NRI property TDS into the standard resident-seller 1% mechanism.<\/p>\n\n\n\n

For taxpayers transitioning from old Section 195 terminology to the new Income-tax Act, 2025, our Income-tax Act 1961 \u2194 2025 Section Finder<\/a> can be used to identify corresponding provisions.<\/p>\n\n\n\n

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Lower TDS Certificate Under Section 395 Remains Extremely Important<\/strong><\/h1>\n\n\n\n

For an NRI seller, one of the most important planning tools continues to be the lower or nil TDS certificate<\/strong>.<\/p>\n\n\n\n

Suppose an NRI is selling a property for \u20b92 crore.<\/p>\n\n\n\n

The sale consideration may be \u20b92 crore, but the actual taxable capital gain could be substantially lower after considering:<\/p>\n\n\n\n

cost of acquisition, eligible improvement expenditure, holding period, capital losses and available capital-gain exemptions.<\/strong><\/p>\n\n\n\n

Allowing tax to be deducted without examining these facts can result in substantial funds being blocked until the NRI files the tax return and receives a refund.<\/p>\n\n\n\n

The better approach may be to examine a lower-deduction application before substantial sale consideration is paid<\/strong>.<\/p>\n\n\n\n

The new Schedule E expressly provides fields for:<\/p>\n\n\n\n

Section 395(1) certificate obtained by the NRI seller<\/strong>, and<\/p>\n\n\n\n

Section 395(2) certificate obtained by the buyer<\/strong>. Etds<\/a><\/p>\n\n\n\n

This confirms that lower-TDS planning remains fully integrated into the new PAN-based system.<\/p>\n\n\n\n

For comprehensive NRI tax, capital-gains and repatriation assistance, refer to our NRI Taxation, FEMA & Fund Repatriation Services<\/a>.<\/p>\n\n\n\n

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What if the NRI Seller Does Not Have PAN?<\/strong><\/h1>\n\n\n\n

Notification No. 121\/2026 also specifically deals with this situation.<\/p>\n\n\n\n

Schedule E requires overseas information relating to the non-resident seller, including:<\/p>\n\n\n\n

foreign address, contact details, Tax Residency Certificate information and foreign Tax Identification Number or other prescribed identification.<\/strong><\/p>\n\n\n\n

The notification further provides that where PAN is unavailable, specified information under Rule 217<\/strong> must be furnished for the higher-rate TDS provisions to be dealt with appropriately. Etds<\/a><\/p>\n\n\n\n

This is particularly relevant for overseas property owners who may have acquired property or inherited assets in India long ago but do not presently have an operative Indian PAN.<\/p>\n\n\n\n

The position should be reviewed professionally rather than assuming that foreign identification automatically substitutes for PAN in every case.<\/p>\n\n\n\n

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Form 132 Is Also Being Updated<\/strong><\/h1>\n\n\n\n

Notification 121\/2026 does not stop at Form 141.<\/p>\n\n\n\n

CBDT has also amended Form 132<\/strong>, which is the consolidated TDS certificate corresponding to earlier Forms 16B, 16C, 16D and 16E.<\/p>\n\n\n\n

The current Form 132 framework describes it as proof that TDS has been deducted and deposited and enables the recipient to claim the related tax credit. Etds<\/a><\/p>\n\n\n\n

The new notification modifies Form 132 to accommodate the transaction involving:<\/p>\n\n\n\n

transfer of immovable property by a non-resident to a resident individual\/HUF.<\/strong> Etds<\/a><\/p>\n\n\n\n

Thus the entire chain is being aligned:<\/p>\n\n\n\n

Deduction \u2192 PAN-based challan-cum-statement \u2192 TDS certificate \u2192 seller’s tax credit<\/strong><\/p>\n\n\n\n

rather than changing only the payment challan.<\/p>\n\n\n\n

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Property Sold in Instalments? Timing Becomes Critical<\/strong><\/h1>\n\n\n\n

The new Schedule E specifically asks whether consideration is being paid:<\/p>\n\n\n\n

in lump sum or instalments.<\/strong><\/p>\n\n\n\n

Where instalments are involved, it requires identification of the:<\/p>\n\n\n\n

first instalment, subsequent instalment or final instalment<\/strong>, along with previous acknowledgement details where relevant. Etds<\/a><\/p>\n\n\n\n

This is particularly important for transactions crossing 30 September and 1 October 2026<\/strong>.<\/p>\n\n\n\n

For example:<\/p>\n\n\n\n

25 September 2026<\/strong> \u2013 advance paid
10 October 2026<\/strong> \u2013 balance paid
15 October 2026<\/strong> \u2013 registration completed<\/p>\n\n\n\n

It would be unsafe to assume that the entire transaction automatically falls under the new regime simply because the sale deed is registered after 1 October.<\/p>\n\n\n\n

The withholding obligation should be examined by reference to the actual payment\/credit events and the law applicable to them<\/strong>.<\/p>\n\n\n\n

Transactions straddling the effective date require particular care.<\/p>\n\n\n\n

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Multiple Buyers? Separate Form Required<\/strong><\/h1>\n\n\n\n

The notification also expressly provides that where there is more than one deductor\/buyer<\/strong>, every deductor must file a separate form<\/strong>. Etds<\/a><\/p>\n\n\n\n

This is especially relevant for:<\/p>\n\n\n\n