From 1 October 2026, a resident individual or Hindu undivided family buying immovable property from a non-resident seller can use Form 141, Schedule E to report and pay TDS where the law requires deduction. The Income Tax Department says this route is available through the buyer’s PAN login and that a TAN is no longer mandatory for these qualifying transactions. The change simplifies the reporting route; it does not remove a TDS obligation that otherwise applies. The department’s Schedule E guidance sets out the scope and effective date.
Who can use Schedule E
The department limits Schedule E to a resident individual or resident HUF purchaser buying from a non-resident seller under section 393(2) of the Income-tax Act, 2025. It is not a universal property-purchase form for every buyer category. The Form 141 FAQs say other categories must use the applicable TAN-based TDS forms or statements. The official FAQ also distinguishes Schedule E from the other schedules in Form 141.
Before 1 October, the department’s guidance says a resident individual or HUF purchaser in this situation had to obtain a TAN and report through Form 144 on TRACES. The updated route places qualifying reporting in Form 141 Schedule E through the e-Filing portal. Before selecting the schedule, confirm the seller’s tax-residence status and the buyer category against the department’s guidance.
What the change does not tell you
The new form is a compliance route, not a new TDS rate or an exemption from tax deduction. The FAQs describe the schedule for a transaction where TDS is required under section 393(2); they do not say that every non-resident seller transaction has the same tax outcome. The amount and timing depend on the applicable law and transaction facts, so the form change alone is not enough to calculate withholding.
BestProp.ai has also explained Form 141 Schedule A for rent TDS. That schedule concerns qualifying rent payments; Schedule E is the property-transfer route for the stated resident-buyer and non-resident-seller categories. Similar form numbering does not make the schedules interchangeable.
BestProp.ai’s closing check
For a purchase in this category, confirm the seller’s residential status, the buyer’s eligibility to use Schedule E, and the transaction’s TDS treatment with a qualified tax adviser. Then follow the current department instructions inside Form 141. This article describes the published filing route, not an individual tax calculation.
Frequently asked questions
Does Form 141 Schedule E apply to every property buyer?
No. The Income Tax Department says it is for a resident individual or resident HUF purchaser buying immovable property from a non-resident seller under section 393(2).
Does the October change eliminate property TDS?
No. It changes the reporting and payment route for qualifying transactions. TDS remains due where the applicable law requires it.
Is a TAN required for a qualifying resident individual or HUF buyer using Schedule E?
The department says a TAN is no longer mandatory for these transactions from 1 October 2026. Other buyer categories must follow their applicable TAN-based reporting route.
Source and limitation
BestProp.ai relies on current Income Tax Department guidance for this procedural change. The article does not state a withholding rate or determine whether a particular sale requires deduction; those depend on the transaction and tax facts.