Form 141 update to help NRIs selling property

The Ministry of Finance has unveiled a new notification that simplifies tax compliance for Indian residents and Hindu Undivided Families (HUFs) purchasing property from non-residents. As of October 1, 2026, these parties can utilize Form 141 and Schedule E to meet their tax obligations, eliminating the need for a Tax Deduction and Collection Account Number (TAN) for buyers.

Under the new process, Step 1 involves the buyer deducting TDS and depositing it with the government using Form 141 within 30 days of the deduction. Form 141 now includes a new Schedule E specifically for TDS on immovable property purchases from non-residents, capturing property details, buyers and sellers' information, agreement/registration dates, stamp duty value, total consideration, installment details, seller's residential status, and tax residency information. This schedule also determines the applicable TDS rate and the amount of TDS.

Step 2 requires the buyer to furnish Form 132, the TDS certificate, to the non-resident seller within 15 days of the Form 141 filing deadline. This amendment benefits Indian buyers by providing a dedicated reporting framework, particularly useful in transactions involving multiple parties, and streamlining the compliance process without compromising tax reporting.