CBDT Extends Form 141 to Property Purchases From Non-Resident Sellers From October 1, 2026

CBDT has amended the Income-tax Rules, 2026 to create a specific Form 141 filing route for a resident individual or Hindu undivided family buying immovable property from a non-resident seller. Notification No. 121/2026, dated 22 September 2026, adds section 393(2) transactions to the challan-cum-statement framework and takes effect on 1 October 2026.

The change matters because the earlier Form 141 FAQ framework described Form 141 as restricted to resident deductees. The new notification now expressly adds a non-resident property-seller category and a dedicated Schedule E. For transactions covered by the amendment after it takes effect, the older resident-only statement should therefore not be applied mechanically.

Schedule E creates a separate filing path for non-resident property sellers

The notification amends rules 215, 218 and 219 and expands Form 141 to cover section 393(2). It also updates Form 132 to recognise transfer of immovable property by a non-resident to a resident individual or HUF as a transaction category. Schedule E is specifically designed for TDS on consideration for that property transfer.

The form asks for property value, every buyer and detailed seller residency information

Schedule E captures the property address and type, all buyers and sellers, agreement and registration dates, total stamp-duty value and total sale consideration. For joint transactions it records the proportion attributable to each buyer and seller. For the non-resident seller it asks for PAN if available, name, status, contact number, email and overseas address. The notes make the overseas contact details and address mandatory whether PAN is available or not.

Where the seller does not have PAN, the form also calls for specified tax-residency-certificate and foreign tax-identification details under the applicable rule. This makes seller documentation an early transaction requirement rather than something to collect only at the filing stage.

Instalment purchases need earlier acknowledgement and cumulative payment data

The schedule distinguishes lump-sum from instalment payments. For subsequent or last instalments it asks for the previous acknowledgement number; for the last instalment it also asks for cumulative consideration paid or credited. The transaction block records the seller, capital-gains type, proportionate stamp-duty value, earlier and current payments, amount liable to TDS, the actual TDS rate, section 395 certificate details where applicable, tax deducted and deduction date.

The notification does not prescribe one universal withholding rate for every non-resident property sale. Buyers and advisers still need to determine the rate under the applicable non-resident tax provision and any valid certificate rather than importing the resident-seller property rate into this workflow.

The new non-resident schedule should not be confused with the resident-seller property route

CA Samaaj’s resident-seller property TDS guide explains the section 393(1) route. Schedule E is a different compliance path: it asks for seller residency data, capital-gains classification, the applicable withholding rate and section 395 certificate details. Professionals handling a current purchase should first establish seller residential status and then use the relevant Form 141 schedule.

What should change from October 1

• Confirm seller residential status before selecting the filing path.
• Collect overseas address, contact and residency-identification information early, especially where PAN is unavailable.
• Map all buyers and sellers and their shares of consideration before filing.
• Preserve earlier Form 141 acknowledgements for instalment transactions.
• Determine the non-resident withholding rate separately; do not assume the resident-property rate applies.

The amendment closes a practical gap in the first version of Form 141 by giving the specified non-resident property transaction an explicit filing route from 1 October 2026, while requiring substantially more seller and transaction information than the earlier resident-deductee workflow.

Official source: View the official source document