The Board Notified the Form. From 1 October Your Buyer Reports the Purchase on Form 141.

On 20 September we reported that the buyer's TAN exemption starts on 1 October 2026 and that the Rules had not been changed to match. On 22 September the Central Board of Direct Taxes changed them. G.S.R. 830(E) brings a purchase of Indian property from a non-resident into the challan-cum-statement in Form No. 141, which asks for the buyer's Permanent Account Number and has no field for a TAN. It comes into force on 1 October 2026, the same day as the exemption. If you are selling a flat to a resident individual or a Hindu undivided family and the sale closes in October, this is the paperwork.

What was notified

The document is Notification No. 121/2026, G.S.R. 830(E), F. No. 370142/29/2026-TPL, dated 22 September 2026, signed by Utkarsh Gupta, Under Secretary. It ran in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), No. 760, gazette ID CG-DL-E-22092026-276402. It is made under section 533 read with sections 395(4)(a) and 397(3)(a) and (b) of the Income-tax Act, 2025.

It is called the Income-tax (Fifth Amendment) Rules, 2026, and rule 1(2) says:

They shall come into force on the 1st day of October, 2026.

The gap, and what closed it

Section 393(2) of the Income-tax Act, 2025 is the successor to the old section 195, and its Table is headed for payments to a non-resident. Entry 17 catches the sale proceeds a buyer pays an NRI seller.

Until this notification, the rules sent that deduction down one road. Rule 219(1), Table entry 2, covers "Sections 392(7), 393(2) and 393(3), in respect of the deductee who is a non-resident" and routes it to Form No. 144, the quarterly statement for payments other than salary made to non-residents. Part A of Form 144 lists the particulars of the deductor, and row 5 of that list reads:

Tax Deduction and Collection Account Number

That was the problem we set out on 20 September in the buyer's TAN exemption starts on 1 October. Section 87 of the Finance Act, 2026 excuses a resident individual or Hindu undivided family from applying for a TAN on this transaction from 1 October 2026. The only statement the rules gave them asked for one.

G.S.R. 830(E) opens the other road. The challan-cum-statement in Form No. 141 is the consolidated successor to the old Forms 26QB, 26QC, 26QD and 26QE. Part A of Form 141 asks the deductor for a name, an address, a Permanent Account Number, an email id and a contact number. There is no row for a Tax Deduction and Collection Account Number.

Three amendments put the transaction there.

Rule 218(3), which fixes the time and mode of paying deducted tax to the Central Government, had applied to sums deducted under section 393(1). The notification inserts "and (2)" into its opening words and adds a new clause (e):

any consideration for transfer of any immovable property (being a sum of the nature specified in section 393(2)[Table: Sl. No. 17]) and where such consideration is paid or credited by a resident individual or Hindu undivided family.

Rule 218(3) then carries its own deadline, which the notification leaves alone. Payment goes to the Central Government within thirty days from the end of the month in which the deduction is made, accompanied by the Form 141 challan-cum-statement.

Rule 219(5) opens with "Irrespective of anything contained in sub-rule (1) or (2) or (4)" and lists the deductions for which Form 141 is furnished within thirty days. A new clause (e) adds:

section 393(2) [Table Sl. No. 17], where a resident individual or Hindu undivided family is required to deduct tax at source on any consideration on transfer of any immovable property.

That wording matters. Rule 219(5) is an override, not a waiver. For a deduction inside it, Form 141 displaces the quarterly statement machinery in rule 219(1) rather than sitting alongside it.

Form 141's own heading is extended to match, from section 393(1) alone to "and section 393(2) [Table Sl. No. 17]", and its Part A gains a nature-of-transaction option:

Transfer of any immovable property by a non-resident to a resident individual or Hindu undivided family

Schedule E, and what your buyer will ask you for

The notification inserts a new Schedule E into Part B of Form 141 for this transaction. It is the part of the change an NRI seller feels, because the buyer cannot complete it alone.

Schedule E asks for the address of the property and whether it is land other than agricultural land, a building or part of a building, or both. It asks for every buyer with a PAN, a name and that buyer's share of the total consideration as a percentage, totalling 100%. Then it asks, for every seller: PAN if available, name, status, contact number, email id, address in the country outside India where the seller is resident, tax residency certificate number, tax identification number, and that seller's share of the consideration.

It also asks for the date of the agreement, the date of registration where available, the total stamp duty value, the total sale consideration, whether payment is lumpsum or in instalments, the certificate number under section 395(1) if the seller obtained one, the certificate number under section 395(2) if the buyer obtained one, the rate, the tax deducted and the date of deduction.

Note 6(a) to the form is the line to read twice:

Contact Number, Email id and Address in the country or specified territory outside India of which deductee is a resident is to be mandatorily provided whether PAN of the non-resident is available or not.

Note 6(b) adds that where the seller has no PAN, the tax residency certificate number and the tax identification number are required under rule 217 "for ensuring that tax is not deducted at higher rate". Rule 217 is the successor to the old rule 37BC and already worked this way. Schedule E now collects those details on the face of the form.

Note 11 records that where there is more than one buyer, each files a separate form.

Two other changes in the same notification

Form No. 132 is the certificate the buyer gives the seller. Rule 215(1), Table serial number 3, is substituted so that the same transaction sits in the row whose certificate is Form 132, due within fifteen days from the date the Form 141 challan-cum-statement is due. Form 132 gains a matching transaction option, and its Note 3(c) is extended to recognise a certificate "under section 395(6) issued by the prescribed income-tax authority", the electronic route to a lower or nil deduction certificate that section 86(b) of the Finance Act, 2026 inserted.

The notification also substitutes "sub-section (7)" for "sub-section (1)" in rule 219(8). Rule 219(8) annexes a verification signed by the trustees of a fund, and the statement trustees furnish is the one in rule 219(7). That is a cross-reference correction and it has nothing to do with property.

What this does not change

The tax. The buyer still deducts on the sale consideration rather than on your gain, and the route to cut what is withheld is still the certificate you apply for before the sale. Our guides set out the seller's side in TDS on sale of property by an NRI, the buyer's duty in TDS on buying property from an NRI, and the certificate in the lower TDS certificate guide.

It does not cover every buyer. Section 87 of the Finance Act, 2026 names a resident individual and a Hindu undivided family, and the new clauses in rules 218(3) and 219(5) name the same two. A company, a firm, an LLP or a trust buying your flat is outside both, and stays on Form 144.

We said on 20 September that we would update that page if the Board notified a form before 1 October 2026. It has, and the page now carries the update.

For your own sale, confirm the position with your chartered accountant before the closing. This is a report of what the gazette says, not advice on your transaction.

FAQ

Which form does a resident buyer use for TDS on property bought from an NRI after 1 October 2026? Form No. 141, the challan-cum-statement, furnished within thirty days from the end of the month in which the tax is deducted. Notification No. 121/2026, G.S.R. 830(E), dated 22 September 2026, adds the transaction to rule 218(3) and to rule 219(5), and extends Form 141's heading to section 393(2) [Table Sl. No. 17]. It applies to a resident individual or Hindu undivided family buyer.

Does the buyer need a TAN to buy property from an NRI from 1 October 2026? Section 87 of the Finance Act, 2026 removes the duty on a resident individual or Hindu undivided family to apply for one from that date. Form 141, the form the Board notified on 22 September 2026 for this transaction, asks the deductor for a Permanent Account Number and carries no Tax Deduction and Collection Account Number field. A buyer who already holds a TAN still quotes it under section 397(1)(b). A company or firm buyer is not covered by the exemption.

What does Schedule E of Form 141 ask an NRI seller for? Permanent Account Number if available, name, status, contact number, email id, the address in the country outside India where the seller is resident, the tax residency certificate number, the foreign tax identification number and the seller's share of the consideration. Note 6(a) makes the contact number, email id and overseas address compulsory whether or not the seller has a PAN.

Does this change how much tax the buyer deducts from the sale price? No. Notification No. 121/2026 amends rules 215(1), 218(3), 219(5) and 219(8) and Forms 132 and 141. It changes how the tax is paid, reported and certified. The rate and the amount on which it is deducted sit in the Income-tax Act, 2025 and are untouched by it. The route to reduce what is withheld is still a certificate under section 395(1), applied for by the seller, or a determination under section 395(2), applied for by the buyer.

When does the change take effect? On 1 October 2026. Rule 1(2) of the Income-tax (Fifth Amendment) Rules, 2026 says they come into force on the 1st day of October, 2026. That is the same date section 87 of the Finance Act, 2026 takes effect.

66 MG Road newsdesk

Sources

• Notification No. 121/2026, G.S.R. 830(E), F. No. 370142/29/2026-TPL, Central Board of Direct Taxes, dated 22 September 2026, in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), No. 760, gazette ID CG-DL-E-22092026-276402. Downloaded by our desk on 23 September 2026, HTTP 200, 860,242 bytes, sha256 bbb6bf8e5d94dbb915665bc2fcb0383dd89191f56ff9b6ce08239502a972c7fd, carrying a digital signature dated 22 September 2026 at 23:12:57, and read in full: https://egazette.gov.in/WriteReadData/2026/276402.pdf
• Income-tax Rules, 2026, notified as G.S.R. 198(E) on 20 March 2026, for rules 215(1), 217, 218(3), 219(1), 219(5) and 219(8) and for Forms 141 and 144 as they stood before this amendment. The Income Tax Department's own copy returns HTTP 403 to our desk, so the copy read on 23 September 2026 is the gazette PDF itself, retrieved through the Internet Archive and carrying the gazette pagination and running heads: http://web.archive.org/web/20260414232250if_/https://www.caalley.com/itax26/Income-Tax-Rules-2026.pdf
• Income-tax Act, 2025 (Act 30 of 2025), for sections 393(2) and 395: https://egazette.gov.in/WriteReadData/2025/265620.pdf
• Finance Act, 2026 (Act No. 4 of 2026), for section 86, which inserted section 395(6), and section 87, which substituted section 397(1)(c): https://egazette.gov.in/WriteReadData/2026/271439.pdf