New NRI Property Tax Rules to Kick In From October 1
What Happened
The Central Board of Direct Taxes (CBDT) has introduced new TDS reporting rules for property purchases from non-resident Indian (NRI) sellers, effective October 1, 2026. Resident individuals and HUFs buying immovable property from NRIs will now be able to use a simplified PAN-based challan-cum-statement mechanism (Form 141) instead of the older, more cumbersome reporting process. A new Schedule E has been added to capture detailed information on such transactions.
Key Takeaways
The biggest relief is procedural. Buyers will no longer need a separate TAN solely for TDS compliance in eligible NRI property transactions and can instead use their PAN to deduct and deposit tax. However, the obligation to deduct TDS remains unchanged, and buyers will need to furnish additional details such as the NRI seller's overseas address, tax residency certificate, and foreign tax identification number.