The Ministry of Finance has released a new notification which essentially makes tax compliance a lot easier for Indian residents and Hindu Undivided Family (HUF) buying property from a non-resident.
This notification (G.S.R. 830(E)) dated September 22, 2026, essentially says that an Indian resident individual/HUF buying property from an NRI/non-resident seller now gets a dedicated challan-cum-statement based compliance route under Form 141 from October 1, 2026, thereby removing the requirement of TAN.
This amendment matters because property purchases from non-residents traditionally required more elaborate TDS compliance (like TAN for buyers) than purchases from resident sellers.
Chartered Accountant Ashish Karundia says that this amendment is a welcome step toward easing the ease of doing business for resident individuals and HUFs purchasing immovable property from non-residents.
Karundia says: “From October 1, 2026, resident buyers will not need to obtain a TAN solely to comply with the TDS obligation, and they can meet the compliance requirement through the prescribed PAN-based mechanism.”
So what is the new process for buying property from non-residents?
As per the notification, there are two parts to it.
Step 1: Form 141
Chartered Accountant Suresh Surana says that firstly, the Indian property buyer has to deduct TDS from the sale consideration and deposit the said TDS with the government using Form 141 within 30 days from the end of the month in which tax is deducted under the amended rule 218(3). The earlier version of rule 218(3) did not include this non-resident property transaction.
Moreover, a new Schedule E in Form 141 has been inserted specifically for TDS on purchase of immovable property from a non-resident. Surana says that this schedule captures the property details, all buyers and sellers, agreement/registration dates, stamp duty value, total consideration, instalment details, seller’s residential status and tax residency information, nature of capital gains, applicable TDS rate and the amount of TDS.
According to Surana, in case the non-resident seller does not have a PAN, the buyer needs to furnish prescribed foreign contact details, Tax Residency Certificate details and foreign Tax Identification Number in accordance with Rule 217 so that the appropriate TDS treatment can be applied.
Surana says that in cases where a lower/nil deduction certificate is available, the new form also specifically provides fields to report the relevant certificate.”
Step 2: Form 132
The Indian property buyer must furnish the non-resident seller with Form 132 (TDS certificate) after filing Form 141. Rule 215 provides a deadline of 15 days from the due date for Form 141.
Also read:Budget 2026 eases compliance burden for individuals buying immovable properties from NRIs
Why was there a need for Schedule E in Form 141?
Karundia says that the amendment to Form 141 provides for capturing details of all buyers and sellers in the same transaction.
Karundia says that this is particularly useful in transactions involving multiple parties and provides a more structured reporting mechanism. Further, where the non-resident seller does not have a PAN, specified details such as the Tax Residency Certificate and foreign Tax Identification Number can be furnished.
Karundia says: “This should make compliance considerably more straightforward for Indian buyers.”
The amended rules repeatedly state that the new mechanism applies where a “resident individual or Hindu undivided family” is required to deduct TDS on consideration paid for transfer of immovable property under section 393(2) of the Income-tax Act, 2025.
Neeraj Agarwala , Senior Partner, Nangia Co LLP says that what is particularly important is that the CBDT has not simply removed the TAN requirement; it has built a dedicated reporting framework through Form 141 and the newly introduced Schedule E.
According to Aggarwala, this amendment represents a shift from a TAN-centric compliance model to a PAN-based model, while retaining the government’s ability to track the transaction and the seller’s tax profile.
Aggarwala says: “The focus is clearly on reducing procedural friction without compromising tax reporting.”
