NRI Property Buyers: New TDS Process From Oct 1, 2026
October 2, 2026 | A new tax-compliance process for buying a house, flat or other immovable property from a non-resident seller took effect on October 1, 2026. The CBDT notified the change through the Income-tax (Fifth Amendment) Rules, 2026.
What changes
- No TAN: resident individuals and HUFs no longer need a separate TAN to report TDS on such purchases
- PAN-based: buyers use their PAN and a challan-cum-statement, similar to buying from a resident seller
- Form 141: the amended form now has a dedicated Schedule E for purchases from non-resident sellers; Form 132 has also been amended
What does not change
The tax itself. TDS must still be deducted and deposited. The reporting method is simpler, but the obligation remains.
What buyers must report
The form asks for the buyer's name and PAN, the property address and type, and the seller's name, PAN, email, contact number and country address. It also asks for the stamp duty value, sale consideration, agreement and registration dates, the amount on which TDS applies, the TDS rate, the tax deducted and the deduction date.
Why it matters
The change removes a separate registration step for buyers, but the tax still applies. Buyers should confirm the TDS rate and workflow with a chartered accountant before closing.