{"id":33242,"date":"2026-09-27T18:35:20","date_gmt":"2026-09-27T13:05:20","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=33242"},"modified":"2026-09-27T18:45:39","modified_gmt":"2026-09-27T13:15:39","slug":"tds-on-purchase-of-property-from-a-nri","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/","title":{"rendered":"TDS on Purchase of Property from a NRI: PAN-Based Compliance"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6ab9493a19385\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6ab9493a19385\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#TDS_on_Purchase_of_Immovable_Property_from_a_Non-Resident_PAN-Based_Compliance_from_1_October_2026\" title=\"TDS on Purchase of Immovable Property from a Non-Resident: PAN-Based Compliance from 1 October 2026\">TDS on Purchase of Immovable Property from a Non-Resident: PAN-Based Compliance from 1 October 2026<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#1_The_notification_at_a_glance\" title=\"1. The notification at a glance\">1. The notification at a glance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#2_Background_why_this_change_was_needed\" title=\"2. Background: why this change was needed\">2. Background: why this change was needed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#3_Amendments_made_by_the_notification_provision_by_provision\" title=\"3. Amendments made by the notification, provision by provision\">3. Amendments made by the notification, provision by provision<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#4_Schedule_E_of_Form_141_what_the_buyer_must_report\" title=\"4. Schedule E of Form 141: what the buyer must report\">4. Schedule E of Form 141: what the buyer must report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#5_What_remains_unchanged\" title=\"5. What remains unchanged\">5. What remains unchanged<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#6_Who_is_covered_and_who_is_not\" title=\"6. Who is covered, and who is not\">6. Who is covered, and who is not<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#7_Transition_transactions_around_1_October_2026\" title=\"7. Transition: transactions around 1 October 2026\">7. Transition: transactions around 1 October 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#8_Practical_checklist_for_buyers_and_their_advisers\" title=\"8. Practical checklist for buyers and their advisers\">8. Practical checklist for buyers and their advisers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/tds-on-purchase-of-property-from-a-nri\/#9_Conclusion\" title=\"9. Conclusion\">9. Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 dir=\"ltr\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33245\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/TDS-on-Purchase-of-INMOVAL-Property-from-NRI.png\" alt=\"TDS-on-Purchase-of-INMOVAL Property-from-NRI\" width=\"1536\" height=\"1024\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/TDS-on-Purchase-of-INMOVAL-Property-from-NRI.png 1536w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/TDS-on-Purchase-of-INMOVAL-Property-from-NRI-300x200.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/TDS-on-Purchase-of-INMOVAL-Property-from-NRI-1024x683.png 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/TDS-on-Purchase-of-INMOVAL-Property-from-NRI-768x512.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/TDS-on-Purchase-of-INMOVAL-Property-from-NRI-800x533.png 800w\" sizes=\"(max-width: 1536px) 100vw, 1536px\" \/><\/h2>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"TDS_on_Purchase_of_Immovable_Property_from_a_Non-Resident_PAN-Based_Compliance_from_1_October_2026\"><\/span><span style=\"color: #000080;\">TDS on Purchase of Immovable Property from a Non-Resident: PAN-Based Compliance from 1 October 2026<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><span style=\"color: #000080;\"><strong>Income-tax (Fifth Amendment) Rules, 2026 \u2014 Notification G.S.R. 830(E) dated 22 September 2026<\/strong><\/span><\/p>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"1_The_notification_at_a_glance\"><\/span><span style=\"color: #000080;\">1. The notification at a glance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">The Central Board of Direct Taxes (CBDT) has issued Notification No. 121\/2026 (G.S.R. 830(E)), dated 22 September 2026, amending the Income-tax Rules, 2026. The amendment is made u\/s 533 read with sections 395(4)(a) and 397(3)(a) and (b) of the Income-tax Act, 2025, and comes into force on <strong>1 October 2026<\/strong>.<\/p>\n<div>\n<p>In essence, the notification gives effect to a key proposal announced in Budget 2026. U\/s 393(2) [Table Sl. No. 17], a resident individual or Hindu Undivided Family purchasing immovable property from a non-resident is required to deduct tax at source on the transaction. Until now, this obligation involved the full range of regular TDS compliances, including obtaining a TAN, depositing tax through TAN-based challans, and filing periodic TDS returns.<\/p>\n<p>With effect from 1 October 2026, this process has been significantly simplified. Eligible buyers will now be able to deduct and report the tax using Form No. 141, a challan-cum-statement, through the newly introduced Schedule E. This allows the buyer to complete the TDS compliance using their PAN, eliminating the need for a separate TAN. The revised mechanism mirrors the simplified PAN-based compliance route that is already available for purchases of immovable property from resident sellers.<\/p>\n<\/div>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"2_Background_why_this_change_was_needed\"><\/span><span style=\"color: #000080;\">2. Background: why this change was needed<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<p>Under the earlier provisions, a buyer acquiring property from a resident seller was not required to obtain a TAN. However, when purchasing property from a non-resident seller, the buyer had to first obtain a TAN, deduct TDS using the TAN, deposit the tax through a TAN-based challan, and file quarterly TDS returns. This resulted in a considerable compliance burden, especially since the TAN was generally needed only for that single transaction. Consequently, many NRI property transactions faced delays and practical difficulties.<\/p>\n<p>To address this issue, the Union Budget 2026-27 proposed a simplified framework under which resident buyers purchasing property from non-residents would no longer be required to obtain a TAN for TDS compliance. Instead, they would be permitted to deduct and deposit TDS using their PAN. The current notification provides the operational framework and procedural rules necessary to implement this simplified PAN-based mechanism<\/p>\n<\/div>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"3_Amendments_made_by_the_notification_provision_by_provision\"><\/span><span style=\"color: #000080;\">3. Amendments made by the notification, provision by provision<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\"><span style=\"color: #000080;\"><strong>(a) Rule 215(1), Table, Serial No. 3.<\/strong><\/span><\/p>\n<div>\n<p>The entries in Column B have been revised. Clause (i) continues to cover the existing TDS provisions u\/s 393(1), namely Table Sl. Nos. (2)(i), (3)(i), (6)(ii), and (8)(vi). These provisions broadly correspond to the earlier sections 194-IA (purchase of property from residents), 194-IB (rent payments), 194M (specified payments by individuals\/HUFs), and 194S (transfer of virtual digital assets).<\/p>\n<p>A new clause (ii) has been introduced to include tax deduction u\/s 393(2) [Table Sl. No. 17], which requires a resident individual or Hindu Undivided Family to deduct tax on consideration paid for the transfer of any immovable property. As a result, this category has now been brought within the scope of other PAN-based TDS deductions<\/p>\n<\/div>\n<p dir=\"ltr\"><strong>(b) Rule 218(3).<\/strong> Three changes are made:<\/p>\n<ul dir=\"ltr\">\n<li>In the opening portion, &#8220;and (2)&#8221; is inserted after &#8220;section 393(1)&#8221;. This means the rule now covers sums deducted u\/s both sub-sections.<\/li>\n<li>In clause (d), the word &#8220;or&#8221; is added.<\/li>\n<li>A new <strong>clause (e)<\/strong> is inserted. It covers consideration for transfer of immovable property (being a sum u\/s 393(2) [Table: Sl. No. 17]) paid or credited by a resident individual or Hindu Undivided Family .<\/li>\n<\/ul>\n<p dir=\"ltr\">The deposit mechanism that applies to the existing PAN-based categories therefore now extends to this case.<\/p>\n<p dir=\"ltr\"><strong>(c) Rule 219.<\/strong> In sub-rule (5), the list is extended:<\/p>\n<ul dir=\"ltr\">\n<li>The &#8220;and&#8221; in clause (c) is omitted.<\/li>\n<li>Clause (d) is re-punctuated.<\/li>\n<li>A new <strong>clause (e)<\/strong> is inserted for section 393(2) [Table: Sl. No. 17], where a resident individual or Hindu Undivided Family deducts tax on transfer of immovable property.<\/li>\n<\/ul>\n<p dir=\"ltr\">In sub-rule (8), the cross-reference &#8220;sub-section (1)&#8221; is corrected to &#8220;sub-section (7)&#8221;.<\/p>\n<p dir=\"ltr\"><strong>(d) Form No. 132 (Appendix III).<\/strong> The following changes are made:<\/p>\n<ul dir=\"ltr\">\n<li>The reference line is corrected to &#8220;[See rule 215(1)[Table: Sl. No. 3]]&#8221;.<\/li>\n<li>In Part A, against serial number 7, a new option is added after &#8220;Transfer of virtual digital asset&#8221;: <em>&#8220;Transfer of immovable property by a non-resident to a resident individual or Hindu undivided family.&#8221;<\/em><\/li>\n<li>Against serial number 10, &#8220;(refer Note 3)&#8221; is inserted.<\/li>\n<li>In Part B, the sub-heading reference is changed from &#8220;132&#8221; to &#8220;141&#8221;.<\/li>\n<li>Notes 3 and 4 are replaced by three new notes:\n<ul dir=\"ltr\">\n<li>Note 3: the field referred to is mandatory if the deductee is a resident.<\/li>\n<li>Note 4: some information will be pre-filled to the extent possible.<\/li>\n<li>Note 5: amounts are to be filled in \u20b9 unless otherwise provided.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p dir=\"ltr\"><strong>(e) Form No. 141 (challan-cum-statement).<\/strong> This is the most significant change.<\/p>\n<ul dir=\"ltr\">\n<li>The heading now covers deductions u\/s 393(1) [Table Sl. Nos. 2(i), 3(i), 6(ii) and 8(vi)] <strong>and section 393(2) [Table Sl. No. 17]<\/strong>.<\/li>\n<li>In Part A, against serial number 6, a new transaction type is added: <em>&#8220;Transfer of any immovable property by a non-resident to a resident individual or Hindu undivided family.&#8221;<\/em><\/li>\n<li>In Part B, a new <strong>Schedule E<\/strong> is inserted after Schedule D (explained in detail below).<\/li>\n<li>In Note 3, clause (c), after &#8220;Assessing Officer&#8221;, the words <em>&#8220;or u\/s 395(6) issued by the prescribed income-tax authority, as the case may be&#8221;<\/em> are added. Lower\/nil deduction certificates issued by the prescribed authority u\/s 395(6) are therefore also recognised for determining the rate.<\/li>\n<li>Notes 6, 7 and 8 are replaced by new Notes 6 to 13.<\/li>\n<\/ul>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"4_Schedule_E_of_Form_141_what_the_buyer_must_report\"><\/span><span style=\"color: #000080;\">4. Schedule E of Form 141: what the buyer must report<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">Schedule E is titled <em>&#8220;TDS on any consideration on transfer of any immovable property covered u\/s 393(2) [Table: Sl. No. 17]&#8221;<\/em>. It captures the following details.<\/p>\n<p dir=\"ltr\"><span style=\"color: #000080;\"><strong>Property details (Item 1).<\/strong><\/span> The buyer reports:<\/p>\n<ul dir=\"ltr\">\n<li>The address of the property transferred or to be transferred.<\/li>\n<li>The type of property: land other than agricultural land, a building or part of a building, or both.<\/li>\n<li>Details of all buyers (PAN, name and each buyer&#8217;s percentage share of the total consideration, totalling 100%).<\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"color: #000080;\"><strong>Seller (deductee) details (Item 1(iv)).<\/strong><\/span> For each non-resident seller, the Schedule captures:<\/p>\n<ul dir=\"ltr\">\n<li>PAN, if available.<\/li>\n<li>Name.<\/li>\n<li>Status code.<\/li>\n<li>Contact number and email ID.<\/li>\n<li>Address in the country or specified territory outside India of which the seller is a resident.<\/li>\n<li>Tax Residency Certificate (TRC) number.<\/li>\n<li>Tax Identification Number (TIN).<\/li>\n<li>The seller&#8217;s share of total sale consideration, totalling 100%.<\/li>\n<\/ul>\n<p dir=\"ltr\"><strong><span style=\"color: #000080;\">Transaction values (Items 2 to 5)<\/span>.<\/strong> The buyer reports:<\/p>\n<ul dir=\"ltr\">\n<li>Date of agreement.<\/li>\n<li>Date of registration, if available.<\/li>\n<li>Total stamp duty value of the property.<\/li>\n<li>Total sale consideration.<\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"color: #000080;\"><strong>Mode of payment (Item 6).<\/strong><\/span> The buyer states whether payment is lump sum or in instalments. For instalments, the buyer indicates whether it is the first, a subsequent or the last instalment. For subsequent and last instalments, the previous acknowledgement number must be quoted. For the last instalment, the buyer also gives the total consideration paid\/credited, including the present instalment. This allows the Department to link all instalments of one transaction.<\/p>\n<p dir=\"ltr\"><strong><span style=\"color: #000080;\">Transaction details (Item 7, per seller)<\/span>.<\/strong> For each seller, the buyer reports:<\/p>\n<ul dir=\"ltr\">\n<li>PAN and name.<\/li>\n<li>Whether the seller is opting out of the taxation regime u\/s <strong>202(1)<\/strong> for the relevant tax year. This matters because the default regime affects the rate at which short-term gains are taxed.<\/li>\n<li>The type of capital gain: <strong>long-term capital gains u\/s 197(1)<\/strong>, or <strong>short-term capital gains other than those referred to in section 196<\/strong>.<\/li>\n<li>Proportionate stamp duty value.<\/li>\n<li>Amount paid in previous instalments.<\/li>\n<li>Amount paid\/credited in the present transaction and date of payment.<\/li>\n<li>Amount on which tax is deductible.<\/li>\n<li>Rate of TDS.<\/li>\n<li>Certificate number u\/s 3<strong>95(1)<\/strong> (obtained by the deductee) or <strong>section 395(2)<\/strong> (obtained by the deductor), if any.<\/li>\n<li>Amount of TDS and date of deduction.<\/li>\n<li>Unique acknowledgement number of the corresponding <strong>Form No. 145<\/strong>, if applicable.<\/li>\n<\/ul>\n<p dir=\"ltr\">Rows are repeated for each seller.<\/p>\n<p dir=\"ltr\"><span style=\"color: #000080;\"><strong>Key notes to Schedule E:<\/strong><\/span><\/p>\n<ul dir=\"ltr\">\n<li><strong>Note 6(a).<\/strong> The non-resident&#8217;s foreign contact number, email ID and foreign address are <strong>mandatory, whether or not the non-resident has a PAN<\/strong>.<\/li>\n<li><strong>Note-6(b).<\/strong> Where the non-resident has no PAN, the TRC number and TIN columns must be furnished as per rule 217, so that tax is <strong>not deducted at the higher rate<\/strong> applicable for non-furnishing of PAN.<\/li>\n<li><strong>Note 7.<\/strong> Status codes for the seller:<\/li>\n<\/ul>\n<div dir=\"ltr\">\n<table style=\"height: 312px;\" width=\"840\">\n<thead>\n<tr>\n<th scope=\"col\">Code<\/th>\n<th scope=\"col\">Status<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>01<\/td>\n<td>Company, other than domestic company<\/td>\n<\/tr>\n<tr>\n<td>02<\/td>\n<td>Individual<\/td>\n<\/tr>\n<tr>\n<td>03<\/td>\n<td>Hindu Undivided Family<\/td>\n<\/tr>\n<tr>\n<td>04<\/td>\n<td>AOP (other than AOP consisting only of companies)<\/td>\n<\/tr>\n<tr>\n<td>05<\/td>\n<td>AOP consisting only of companies<\/td>\n<\/tr>\n<tr>\n<td>06<\/td>\n<td>Co-operative society<\/td>\n<\/tr>\n<tr>\n<td>07<\/td>\n<td>Firm<\/td>\n<\/tr>\n<tr>\n<td>08<\/td>\n<td>Body of individuals<\/td>\n<\/tr>\n<tr>\n<td>09<\/td>\n<td>Artificial juridical person<\/td>\n<\/tr>\n<tr>\n<td>10<\/td>\n<td>Others<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<ul dir=\"ltr\">\n<li><strong>Note 8.<\/strong> A TRC is the certificate of residence issued by the government of the foreign country or territory, where its law provides for one.<\/li>\n<li><strong>Note-9.<\/strong> TIN means the seller&#8217;s tax identification number in the country of residence. If none exists, any unique number by which that government identifies the seller.<\/li>\n<li><strong>Note 10.<\/strong> The TDS amount <strong>must include surcharge (if applicable) and cess<\/strong>.<\/li>\n<li><strong>Note-11.<\/strong> Where there is more than one deductor (for example, joint buyers), <strong>each deductor must file a separate form<\/strong>.<\/li>\n<li><strong>Notes 12 and 13.<\/strong> Some information will be pre-filled, and amounts are in \u20b9 unless otherwise provided.<\/li>\n<\/ul>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"5_What_remains_unchanged\"><\/span><span style=\"color: #000080;\">5. What remains unchanged<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">The change is procedural, not substantive. The buyer&#8217;s obligation to deduct tax continues, and so does the non-resident seller&#8217;s liability to capital gains tax and to file a return. Unlike resident sellers, where TDS is applicable only if the sale consideration exceeds Rs 50 lakh, there is no minimum threshold for deducting TDS when the seller is an NRI. The rate is not a flat 1%. It depends on the nature of the gain (long-term or short-term), as the Schedule&#8217;s own fields reflect, plus surcharge and cess.<\/p>\n<p dir=\"ltr\">A lower or nil deduction certificate remains available. It can be obtained by the seller u\/s 395(1), by the buyer u\/s 395(2), or issued u\/s 395(6) by the prescribed authority, and it is to be quoted in the form.<\/p>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"6_Who_is_covered_and_who_is_not\"><\/span><span style=\"color: #000080;\">6. Who is covered, and who is not<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">The relief applies only where the buyer is a <strong>resident individual or Hindu Undivided Family <\/strong>and the seller is a <strong>non-resident<\/strong>. This relief is only for individual and Hindu Undivided Family buyers. Company and firm buyers will still need a TAN even after October 1, 2026.<\/p>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"7_Transition_transactions_around_1_October_2026\"><\/span><span style=\"color: #000080;\">7. Transition: transactions around 1 October 2026<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<div>The amended rules will take effect from 1 October 2026. Until 30 September 2026, buyers must continue to comply with the existing TDS framework, including obtaining a TAN before depositing the tax. For transactions that extend across both periods, the applicable procedure should be determined based on the date of payment or credit and the date on which TDS is deducted. In transactions involving instalment payments, careful consideration should also be given to instalments already paid under the earlier TAN-based regime. The instalment reporting requirements in the Schedule are framed on the assumption that such earlier instalments have been reported through Form 141.<\/div>\n<\/div>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"8_Practical_checklist_for_buyers_and_their_advisers\"><\/span><span style=\"color: #000080;\">8. Practical checklist for buyers and their advisers<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">Before payment, the buyer should collect the following from the non-resident seller:<\/p>\n<ul dir=\"ltr\">\n<li>PAN, or where PAN is not available, the TRC and TIN.<\/li>\n<li>Foreign address, phone number and email.<\/li>\n<li>The seller&#8217;s status.<\/li>\n<li>The date of acquisition and cost of the property, to establish whether the gain is long-term or short-term.<\/li>\n<li>Whether the seller has opted out of the default regime.<\/li>\n<li>Any lower\/nil deduction certificate.<\/li>\n<\/ul>\n<p dir=\"ltr\">The buyer should then:<\/p>\n<ol dir=\"ltr\">\n<li>Work out the amount on which tax is deductible and the applicable rate, including surcharge and cess.<\/li>\n<li>Deduct at the time of payment or credit, whichever is earlier.<\/li>\n<li>Deposit through Form 141 with Schedule E under the buyer&#8217;s own PAN.<\/li>\n<li>For joint buyers, ensure each buyer files a separate form for their share.<\/li>\n<li>Preserve the acknowledgement for later instalments.<\/li>\n<li>Retain the challan and TDS certificate, since many sub-registrar offices seek proof of payment during the property registration process<\/li>\n<\/ol>\n<p dir=\"ltr\">The buyer should also coordinate the linked Form No. 145 filing where applicable.<\/p>\n<ul dir=\"ltr\">\n<li><\/li>\n<\/ul>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"9_Conclusion\"><\/span><span style=\"color: #000080;\">9. Conclusion<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<p>The Income-tax (Fifth Amendment) Rules, 2026 eliminate a long-standing compliance challenge in property transactions involving NRIs. Resident individuals and Hindu Undivided Families (HUFs) purchasing immovable property from non-residents are no longer required to obtain a one-time TAN or comply with the regular TDS return filing process. Instead, the tax can now be reported through a simplified, transaction-specific challan-cum-statement.<\/p>\n<p>However, the newly introduced Schedule E requires more detailed information about the non-resident seller, including their foreign address, Tax Residency Certificate (TRC), Tax Identification Number (TIN), nature of capital gains, and details of any instalment-based payments. Accordingly, buyers should obtain all relevant documents and information from the seller well in advance of making the payment. It is important to ensure accurate TDS rate determination and complete reporting, as incorrect calculations or the absence of TRC\/TIN details may result in short deduction, deduction at a higher rate, or other compliance defaults.<\/p>\n<\/div>\n<p dir=\"ltr\"><em>For assistance with TDS computation, lower deduction certificates and Form 141 compliance on property transactions with non-residents, contact <strong>Rajput Jain &amp; Associates, Chartered Accountants<\/strong>, P-6\/90 (2F), Connaught Circus, Connaught Place, New Delhi-110001 | +011-43-52-0194 | +91-98-11-322-785 | <a href=\"mailto:info@carajput.com\">info@carajput.com<\/a> | <a href=\"http:\/\/www.carajput.com\">www.carajput.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TDS on Purchase of Immovable Property from a Non-Resident: PAN-Based Compliance from 1 October 2026 Income-tax (Fifth Amendment) Rules, 2026 \u2014 Notification G.S.R. 830(E) dated 22 September 2026 1. The notification at a glance The Central Board of Direct Taxes (CBDT) has issued Notification No. 121\/2026 (G.S.R. 830(E)), dated 22 September 2026, amending the Income-tax &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9909],"tags":[10574],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33242"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=33242"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33242\/revisions"}],"predecessor-version":[{"id":33247,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33242\/revisions\/33247"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=33242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=33242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=33242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}