28/09/2026
📢 TDS ON PURCHASE OF IMMOVABLE PROPERTY FROM AN NRI — KEY CHANGES FROM 1 OCTOBER 2026
The Income-tax framework introduces an important compliance change for Resident Individuals and HUFs purchasing immovable property from a Non-Resident seller.
From 1 October 2026, eligible Resident Individuals/HUFs will not be required to obtain a TAN solely for deducting and reporting TDS on such transactions. Instead, the prescribed PAN-based Form 141 process will apply.
*🔍 KEY POINTS TO KNOW*
*🔹 No TAN Requirement*
Eligible Resident Individuals/HUFs can comply without obtaining TAN solely for this transaction.
*🔹 Buyer's PAN*
TDS can be deducted and reported using the buyer's PAN, subject to the prescribed procedure.
*🔹 Form 141 – Schedule E*
The transaction is to be reported through the newly introduced Schedule E of Form 141 under Section 393(2).
*🔹 Keep the Required Details Ready*
Buyers should maintain the property's details, buyer information, non-resident seller's details, and transaction/payment information required for reporting.
*🔹 TDS Rate*
The applicable rate depends on the nature of the payment/income and the provisions applicable to the non-resident seller. Applicable surcharge, Health & Education Cess and any valid lower/nil deduction certificate should be considered wherever relevant.
*📌 IMPORTANT*
From 1 October 2026, TDS on the purchase of immovable property from a non-resident seller is specifically reported through Schedule E of Form 141 under Section 393(2). Schedule B applies to the corresponding resident-seller transaction under Section 393(1).
Proper documentation and timely compliance are important to avoid errors in TDS reporting and payment.
Stay informed. Stay compliant. Stay ahead
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