Form 141 Schedule B or Schedule E: Reporting TDS on a Bengaluru Flat From a Resident or NRI Seller

Until this year, the paperwork a Bengaluru buyer used for TDS on a flat depended on who the seller was and which law applied. Under the Income-tax Act, 2025, several older TDS forms, including Form 26QB, have been merged into a single challan-cum-statement, Form 141. On October 1, 2026, the form gained a new part, Schedule E, built for buying from a non-resident seller. If you are registering a flat this winter, the first question on the payment screen is which schedule applies to you.

This guide is an update to our earlier explainer on TDS when buying property from an NRI seller in Bengaluru. It relies on the income tax department's own Form 141 FAQ and its help page on the Form 141 challan-cum-statement, both on the e-filing portal.

The short answer. Use Schedule B when buying from a resident seller; it covers TDS on transfer of immovable property under section 393(1). Use Schedule E, available from October 1, 2026, when buying from a non-resident seller under section 393(2); it applies only where the buyer is a resident. In both cases the buyer is the deductor, the tax must be paid within 30 days from the end of the month of deduction, and the statement must be furnished within one month from the end of that month. The trade-off: one form simplifies the process, but picking the wrong schedule or rate creates a correction you will have to make later through TRACES.

What is Form 141, and what did it replace?

Form 141 is the challan-cum-statement for payment and reporting of tax deducted at source under sections 393(1) and 393(2) of the Income-tax Act, 2025. The department's FAQ says the earlier Forms 26QB, 26QC, 26QD and 26QE have been merged into this single unified form. Form 26QB was the form buyers used for TDS on property under the earlier law.

The portal itself reflects the new law. Its payment module now supports payments under the Income-tax Act, 2025 for tax year 2026 to 27 onwards, and the path to Form 141 runs through that option. The help page says Form 141 can be filed only through the PAN login: e-File, then E-Pay Tax, then select Income Tax Act 2025, then New Payment, then Form 141.

One practical consequence of the merger is that the form now asks you to identify the type of transaction up front. Before you open the portal, have the seller's PAN, the property details, the date and amount of the payment, and the amount of tax you are deducting ready. Filling these in once, correctly, is far easier than correcting them later. Keep a copy of every challan and statement in the same folder as your agreement for sale and payment receipts, because the same dates and amounts will be needed when the sale deed is registered and when your own records are reconciled at the end of the tax year.

When do I use Schedule B?

When the seller is a resident. The FAQ says Schedule B covers TDS on transfer of immovable property under section 393(1), Table serial number 3(i). The buyer or purchaser is the deductor, the seller is the deductee, and Schedule B can be filed by all categories of assessees, subject to the applicable provisions of the Act.

A purchase from a resident seller, whether a developer or an individual owner, falls here. If you are buying jointly or from more than one seller, see the section on multiple parties below, and our earlier piece on Form 141 for joint buyers, multiple sellers and instalments.

When do I use Schedule E, and what changed on October 1?

When the seller is a non-resident. The FAQ says that with effect from October 1, 2026, Schedule E has been introduced in Form 141, for TDS on transfer of immovable property by a non-resident under section 393(2). It adds that Schedule E is applicable only where the deductor is a resident, and describes it for resident individual or HUF purchasers.

The FAQ also draws a clear boundary: Schedules A, B, C and D continue under their existing rules, and Schedule E should not be used for them. So a resident seller is never a Schedule E case, and a non-resident seller is not a Schedule B case. Confirm the seller's residential status in writing before you pay, because the schedule follows from it.

For a resale from a non-resident owner, settle the paperwork before the sale agreement is final. Ask the seller to state their residential status in the agreement, provide their PAN, and share any certificate they hold from the department on the rate of deduction. If the seller's status is unclear, for example because they moved abroad recently, do not guess. The schedule, the provision and potentially the rate all follow from that one fact, and a mistake here is harder to unwind after money has changed hands.

What rate should I deduct?

The FAQ is careful here. It says there is no single prescribed TDS rate for Form 141. The rate depends on the nature of the transaction and the applicable provisions of the Income-tax Act, 2025, and may be a higher rate where section 397(2) applies, or a rate specified in a certificate issued under section 395(1) or 395(2).

In practice, that means you should confirm the rate for your transaction before you pay, particularly with a non-resident seller, where a certificate from the department may set a specific rate. Ask the seller whether such a certificate exists and get a copy. If you are unsure, a chartered accountant can confirm the rate and the base on which it applies for your case.

When must I pay and file?

The FAQ sets two deadlines. The amount deducted must be paid to the credit of the Central Government within 30 days from the end of the month in which the deduction is made. The statement must be furnished within one month from the end of the month in which tax is deducted. Because Form 141 is a challan-cum-statement, payment and reporting happen through the same form.

For a flat paid in instalments, each payment month can create its own deduction and its own deadline. Keep a simple log of each payment date, the amount, the TDS deducted and the date you filed, so that nothing slips. A PropNewz project page such as Sobha Dream Acres on Panathur Road can help you follow a project, but your payment receipts set your TDS calendar.

If a bank is disbursing part of the price, coordinate the TDS with the disbursement. The TDS is your obligation as the buyer, so agree with the seller, and where relevant the builder, how the deducted amount will be handled in each payment, and make sure your own funds cover the tax when it falls due. Writing this into the payment schedule avoids a situation where the full amount is released to the seller and the TDS has to be found separately at the last minute.

How do joint buyers, multiple sellers and corrections work?

The FAQ says each deductor is required to file a separate Form 141 for their respective share. One deductor can file a single Form 141 for multiple deductees only if they share the same deductee category and the deduction was made in the same month. The deductee category follows the PAN: a deductee is treated as corporate only when the fourth character of the PAN is C.

After filing, the TDS certificate can be downloaded by logging in to the TDS-TRACES portal. If something goes wrong, such as a wrong amount or schedule, the FAQ says corrections are made through TRACES, not through the e-filing portal. Save the acknowledgement for every filing so that any correction starts from the right record.

What should I do, step by step?

Use these seven steps for each payment that involves TDS.

1. Confirm in writing whether the seller is a resident or a non-resident, and get the seller's PAN.
2. Choose Schedule B for a resident seller or Schedule E for a non-resident seller from October 1, 2026.
3. Confirm the applicable TDS rate for your transaction, including any certificate under section 395.
4. Log in with your PAN and follow e-File, E-Pay Tax, Income Tax Act 2025, New Payment, Form 141.
5. Pay within 30 days from the end of the month of deduction and furnish the statement within one month.
6. If there are several buyers, have each deductor file a separate Form 141 for their share.
7. Download the TDS certificate from TRACES and use TRACES for any correction.

Frequently asked questions

Which schedule of Form 141 do I use when buying a flat from a resident seller?

The income tax department's Form 141 FAQ says Schedule B covers TDS on transfer of immovable property under section 393(1) of the Income-tax Act, 2025, Table serial number 3(i). The buyer is the deductor and the seller is the deductee, and the schedule can be filed by all categories of assessees.

What is Schedule E and when did it start?

According to the department's FAQ, Schedule E was introduced in Form 141 with effect from October 1, 2026 for TDS on transfer of immovable property by a non-resident under section 393(2). It applies only where the deductor, the buyer, is a resident, and the FAQ describes it for resident individual or HUF purchasers.

When must the TDS be paid and Form 141 filed?

The FAQ says the deducted amount must be paid to the credit of the Central Government within 30 days from the end of the month in which the deduction is made, and that the statement must be furnished within one month from the end of the month in which tax is deducted.

What TDS rate applies under Form 141?

The department's FAQ says there is no single prescribed TDS rate for Form 141. The rate depends on the transaction and the provisions of the Income-tax Act, 2025, and may be a higher rate under section 397(2) or a rate in a certificate under section 395(1) or 395(2). Confirm the rate for your case before paying.

Last updated 2026-10-28. PropNewz Team.