Buying property from an NRI becomes easier; rules to change from October 1

The CBDT has revised TDS rules for purchasing property from NRIs. Starting October 1, 2026, resident individuals and HUFs will not require a TAN; instead, they can provide the necessary details using their PAN.

If you are planning to buy a house, land, or any other property from an NRI (a non-resident Indian), here is an important update for you. The Central Board of Direct Taxes (CBDT) has modified the TDS rules applicable to such property transactions. These new rules will come into effect on October 1, 2026. This change will simplify the process for buyers to deposit TDS and report the transaction details.

The primary objective of these new rules is to ease the compliance process for resident individuals and HUFs. Under these rules, if a resident individual or HUF purchases property from an NRI, they will not need to obtain a separate TAN for TDS purposes. Instead, TDS details can be submitted via a ‘challan-cum-statement’ based on their PAN. However, the obligation to deduct tax remains unchanged.

What changes from October 1?

Resident individuals and HUFs will not need to obtain a separate TAN.
A PAN-based ‘challan-cum-statement’ can be used to deposit and report TDS.
A new ‘Schedule E’ related to the property has been added to Form 141.
This schedule requires details regarding the property, the purchase, and the NRI seller.

What information must be provided in Form 141?

Under the new rules, the buyer is required to provide several key details regarding the property and the transaction. This may include the NRI seller’s PAN and address, as well as information related to the agreement and registration. Additionally, Form 141 includes a specific reporting mechanism for the transfer of immovable property.

Full address of the property

Type of property (e.g., land or building)
Details of the buyer and seller
PAN and contact information
Sale price of the property
Stamp duty value
Whether payment is lump-sum or in installments
Amount and rate of TDS deducted
Date of TDS deduction

Details required even for installment payments

If you are paying the property price in installments rather than a lump sum, payment records must also be included in the reporting:

Amount paid in the previous installment
Amount paid in the current installment
Whether it is the first, intermediate, or final installment
Date of payment
Amount on which TDS was deducted
TDS rate and the amount deducted

TAN requirement removed, but TDS obligation remains

Changes in the rules do not mean that the obligation to deduct TDS when purchasing property from an NRI has been eliminated. While the new rules will simplify the TDS process, the buyer’s responsibility remains. Therefore, before purchasing property from an NRI, it is essential to have details ready—such as their PAN, overseas address, mobile number, email, and, if required, TRC or TIN.