Buying a flat or plot from a non-resident no longer means applying for a TAN. From 1 October 2026, resident individuals and HUFs can deposit and report the TDS using just their PAN.
What has changed
- CBDT has notified the Income-tax (Fifth Amendment) Rules, 2026, amending Rules 215, 218 and 219 of the Income-tax Rules, 2026.
- A new Schedule E in Form 141 captures the property, buyer, non-resident seller, transaction and TDS details.
- Form 132 gets a new option for transfers of immovable property by a non-resident to a resident individual or HUF.
- The obligation to deduct tax and the applicable rate (with surcharge and cess) are unchanged. Only the compliance route is simpler.
Who is affected
Resident individuals and HUFs buying immovable property from a non-resident seller, including NRIs selling inherited or investment property in India.
Compliance points
- Form 141 is due within 30 days from the end of the month in which tax is deducted.
- Where there are joint buyers, each buyer files a separate Form 141 for their share.
- The NRI seller can still apply for a lower or nil deduction certificate. Buyers should collect it before payment.
Our view
This removes one of the most common pain points in NRI property deals. Buyers should still get the TDS working right, because surcharge on large sale values is often missed, and a short deduction is the buyer’s default, not the seller’s.
Reference: CBDT Notification No. 121/2026 dated 22 September 2026 — Income-tax (Fifth Amendment) Rules, 2026; applicable from 1 October 2026.