Buying From an NRI Seller in Hyderabad? TDS Now Goes Through Form 141 Schedule E, No TAN

Until the last day of September 2026, a Hyderabad family buying a resale flat from a seller living abroad had an extra errand before they could pay the tax they owed on the deal. They needed a Tax Deduction Account Number, the TAN, and they had to file a TDS statement through the TRACES system. On 1 October 2026 that changed. The income tax e-filing portal now lets a resident individual or Hindu Undivided Family report that deduction with their own PAN, through a new section of the challan form called Schedule E.

This guide explains what changed, who can use the new route, what the form asks for, and where a buyer can still go wrong, using the Income Tax Department's own help pages.

The short answer. From 1 October 2026, a resident individual or HUF buying immovable property from a non-resident seller can report the tax deducted under section 393(2) of the Income-tax Act, 2025 through Form 141 Schedule E, using the deductor's PAN instead of a TAN. Before that date the process needed a TAN, the deduction, and a Form 144 statement filed through TRACES. The Department's Form 141 FAQs say the tax must be paid within 30 days from the end of the month of deduction. The trade-off: the paperwork is lighter, but the rate is not. The FAQs say there is no single prescribed rate for Form 141, so the buyer still has to work out the correct deduction for a non-resident seller, and missing seller details can push it to a higher rate.

What exactly changed on 1 October 2026?

The filing route changed, not the duty to deduct. The Department's help page for Schedule E describes it as the form used to report TDS on a transfer of immovable property by a non-resident seller to a resident individual or HUF, under section 393(2), Table Serial No. 17, of the Income-tax Act, 2025.

The same page sets out the before and after. Before 1 October 2026, this kind of purchase required a TAN, the TDS deduction, and a Form 144 statement filed through TRACES. The page says the Finance Bill, 2026 removed the TAN requirement for these transactions from that date, so the deductor's PAN is used on the e-filing portal instead.

The FAQs describe Form 141 as a challan-cum-statement, so the tax payment and the reporting happen in the same filing.

Who can use Schedule E, and who cannot?

Only resident individuals and HUFs who are buying from a non-resident. The Schedule E page says the schedule covers non-resident deductees only. Where the sellers include both residents and non-residents, it says separate forms are needed: Schedule B for the resident sellers and Schedule E for the non-resident sellers.

The FAQs add that Schedule E is limited to a resident individual or HUF deductor, while Schedule B, which covers TDS on purchase of immovable property from a resident seller, can be filed by all categories of assessees. Other assessees report the remaining transactions through the applicable TAN-based TDS forms and statements, according to the FAQs. So a company or firm buying from a non-resident is not covered by this route.

Joint buyers need care. The FAQs say each deductor is required to file a separate Form 141 for their respective share. Joint buyers should expect one filing per PAN.

Our earlier report on TDS when a Hyderabad buyer purchases from an NRI seller described the older, TAN-based process.

What does the form ask a buyer to enter?

Property, buyer, seller and transaction details. The Schedule E page lists the property details first: the type of property, whether land other than agricultural land, a building or part of a building, or both; the complete address; the agreement date; the registration date if the deed is registered; the stamp duty value; the total consideration; and whether payment is a lump sum or in instalments.

For instalment payments, the page says the form needs the instalment type and the previous acknowledgement number, and for the last instalment, the total amount paid so far. The FAQs separately say a separate Form 141 is needed for each distinct month of deduction, so a buyer paying a seller in several monthly tranches should expect several filings.

Buyer details are the PAN, name and share percentage, and the shares must total 100 per cent. Seller details are the PAN, name, status, contact number, email, overseas address and share percentage, along with the seller's tax residency certificate, the TRC, and tax identification number, the TIN, where relevant.

Then come the transaction details for each seller. The page lists whether the seller opts out of the concessional regime under section 202(1), the type of capital gains, the amounts paid and taxable, the payment and deduction dates, the rate and TDS amount including cess and surcharge, and any lower deduction certificate numbers under section 395(1) or 395(2). It also asks for a Form 145 acknowledgement number if applicable.

How is the TDS rate worked out?

Not by the form. The FAQs say there is no single prescribed TDS rate for Form 141, and that the rate depends on the transaction, the relevant provisions of the Income-tax Act, 2025, and any applicable certificate. They mention that the rate may be a higher rate under section 397(2), or a rate set out in a certificate issued under section 395.

The Schedule E page explains when the higher rate comes in. It says the TRC and TIN are optional fields, but without them, or without a valid PAN for the seller, tax is deducted at the higher rate under section 397(2). It refers to a lower rate under rule 217 when the seller's details are complete. The page asks the buyer to enter the rate as a number with up to two decimal places, which suggests the buyer supplies it.

Collect the seller's PAN, TRC and TIN before the payment date, and if the seller holds a lower deduction certificate from the Assessing Officer, get a copy and record its number in the form. Because the rate depends on the seller's tax position, a buyer may want a chartered accountant to work it out. The new form does not remove that step.

What are the steps and deadlines?

The Schedule E page describes the filing path. Log in to the e-filing portal, go to e-File, then e-Pay Tax, and choose New Payment. Select Form 141, choose the deductee type as corporate or non-corporate, set the residential status to Non Resident, select the tax year and month of deduction, and pick the Schedule E nature of transaction. Deductor details are pre-filled from the buyer's profile. After entering property, buyer, seller and transaction details, and any interest or fee amounts, the buyer chooses a payment mode, previews and pays through the bank's page. The page says a confirmation email and SMS follow, and the challan receipt sits under the Payment History tab.

The prerequisites on the same page are a registered e-filing user ID and password and an active PAN. It recommends that individuals link PAN with Aadhaar, and says an unlinked PAN is made inoperative. The FAQs say Form 141 can be filed only through PAN login.

On timing, the FAQs say the tax deducted must be paid to the credit of the Central Government within 30 days from the end of the month in which it is deducted, and the statement must be furnished within one month from the end of that month. Corrections are not made on the e-filing portal; the FAQs say they are made on the TDS-TRACES portal after registering as a taxpayer. The TDS certificate can also be downloaded from TDS-TRACES.

Before you pay a non-resident seller, work through this list.

1. Confirm the seller's residential status in writing, because a resident seller goes on Schedule B and a non-resident seller on Schedule E.
2. Check that you, the buyer, are a resident individual or HUF; other buyers use the TAN-based forms.
3. Collect the seller's PAN, tax residency certificate and tax identification number before the payment date.
4. Ask whether the seller holds a lower deduction certificate under section 395, and note its number.
5. Have the applicable rate, including surcharge and cess, worked out before you release the sale amount.
6. If you are joint buyers, plan one Form 141 per buyer for each buyer's share.
7. Pay within 30 days from the end of the month of deduction, keep the challan receipt, and download the certificate from TDS-TRACES.

Does this change anything for resident sellers or other cities?

Resident sellers stay on Schedule B, and the change is not specific to Hyderabad: Form 141 sits under the Income-tax Act, 2025, a central law, so the same process applies in any city. Registration and land records, which are state matters, are untouched.

We explained the wider shift to Form 141 under the new Act in our report on TDS on property purchase through Form 141. For buyers looking at resale stock in western Hyderabad, such as homes near DSR Infinity in Kondapur, ask early whether the seller is resident, because that decides which schedule you file.

Frequently asked questions

Do I still need a TAN to buy a flat from an NRI seller?

Not if you are a resident individual or HUF and the deduction is made on or after 1 October 2026. The Income Tax Department's Schedule E page says the TAN requirement was removed for these transactions from that date, and the deductor's PAN is used on the e-filing portal instead. Other buyers still use the TAN-based forms.

Which form do I use if one seller is resident and another is not?

Two forms. The Schedule E help page says that where sellers include both residents and non-residents, separate forms are needed: Schedule B of Form 141 for the resident sellers and Schedule E for the non-resident sellers. Multiple sellers can share one form only if they are the same deductee type and the deduction month is the same.

What happens if the NRI seller does not give a TRC or TIN?

The deduction can go up. The Department's Schedule E page says the tax residency certificate and tax identification number are optional fields, but without them, or without a valid PAN, tax is deducted at the higher rate under section 397(2). Collecting these documents from the seller before payment avoids that outcome.

When must the TDS be paid under Form 141?

The Form 141 FAQs say the tax deducted must be paid to the credit of the Central Government within 30 days from the end of the month in which it is deducted, and the statement furnished within one month from the end of that month. Each distinct month of deduction needs a separate Form 141.

Last updated 2026-10-26. PropNewz Team.