TDS on property bought from a non-resident: Forms 132 and 141 amended from 1 October 2026

What the notification changes

CBDT has amended the Income-tax Rules, 2026 through the Income-tax (Fifth Amendment) Rules, 2026. The changes are about one situation: a resident individual or Hindu undivided family who has to deduct tax at source on consideration for the transfer of immovable property, a sum of the nature specified in section 393(2) [Table: Sl. No. 17] of the Income-tax Act, 2025.

This deduction is now written into rule 215(1), rule 218(3) and rule 219(5). In Form No. 132 and Form No. 141 a new option is added — “Transfer of immovable property by a non-resident to a resident individual or Hindu undivided family”.

What the new Schedule E asks for

• Address and type of the property — land (other than agricultural land), building or part of a building, or both.
• All buyers with PAN and their share of the consideration, and all sellers with their share.
• For each seller: status, contact number, e-mail and address in the country of residence — to be given whether or not the non-resident has a PAN.
• Date of agreement, date of registration if available, total stamp duty value and total sale consideration.
• Whether the payment is in lump sum or instalments, the type of capital gains in the seller’s hands, the rate and amount of tax deducted, and the number of any certificate under section 395(1) or 395(2).

Points from the Notes to the form

• If the non-resident seller has no PAN, the tax residency certificate number and tax identification number are to be furnished as per rule 217, so that tax is not deducted at the higher rate.
• The amount of tax deducted includes surcharge, if applicable, and cess.
• In case of more than one deductor, each deductor has to file a separate form.
• Some of the information in the form will be pre-filled to the extent possible.