From 1 October 2026, resident individuals and Hindu undivided families can use Schedule E in Form 141 to report tax deducted at source on a qualifying property purchase from a nonresident seller. The Income Tax Department says buyers can file it through the Department’s portal using a PAN login. A separate TAN is no longer required for this transaction type. (Income Tax Department guidance for Form 141 Schedule E; Income Tax Department FAQ for Form 141)
Who Schedule E covers
The Department says Schedule E applies when a resident individual or Hindu undivided family buys immovable property from a nonresident seller and is required to deduct tax under section 393(2) of the Income Tax Act 2025. Other buyer types must use the applicable forms and statements. Check the seller’s status and the transaction details before choosing a form. (Income Tax Department FAQ for Form 141)
What changed on 1 October
The Department says that before 1 October, a resident individual or Hindu undivided family buying property from a nonresident seller had to obtain a TAN, deduct tax and file Form 144 through TRACES. From 1 October, that buyer can report a qualifying transaction through Schedule E of Form 141 with a PAN login. The guidance says a TAN is no longer mandatory for this transaction type. This changes the reporting route. It does not decide the tax amount for a particular sale. (Income Tax Department guidance for Form 141 Schedule E)
BestProp.ai’s earlier guide explains property TDS when the seller is resident. Schedule E covers a different seller status.
Questions buyers may ask
Can every buyer use Schedule E? No. The Department says this schedule is for resident individuals and resident Hindu undivided families in the covered transaction.
Does the change remove TDS? The Department describes Form 141 as payment and reporting for tax deducted at source. The schedule does not give one rate for every transaction. The amount depends on the law and transaction details. (Income Tax Department FAQ for Form 141)
BestProp.ai reviewed the Income Tax Department’s Form 141 guidance and FAQ on 5 November 2026. Check the Department’s current instructions for a specific transaction.