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Update · Notified 22 September 2026 · in force 1 October 2026

Individuals and HUFs buying property from a non-resident: no TAN needed from 1 October 2026

A resident individual or Hindu undivided family (HUF) buying immovable property from a non-resident can deduct and deposit TDS (tax deducted at source) without obtaining a TAN (tax deduction and collection account number), using Form 141.

Applies to
Resident individuals and HUFs buying property from a non-resident seller
Effective from
1 October 2026
Published
22 September 2026

The Income-tax (Fifth Amendment) Rules, 2026 (Notification No. 121/2026, G.S.R. 830(E), dated 22 September 2026) bring into effect, from 1 October 2026, a change made by the Finance Act, 2026.

What changes

Until now, a buyer paying a non-resident seller had to obtain a TAN, deposit the tax and file a quarterly TDS statement, because the simpler challan-cum-statement route applied only to resident sellers. From 1 October 2026, a resident individual or HUF buyer can deduct and deposit the tax through the challan-cum-statement in Form 141, and issue the TDS certificate in Form 132. Form 141 now includes a new schedule (Schedule E) for the details of the property, the seller and the stamp duty value. Companies, firms and other buyers still need a TAN when the seller is a non-resident.

What to check before you pay

  • Confirm the seller's residential status for the year of sale.
  • The rate is not the 1% that applies to resident sellers. It is the rate that applies to the seller's capital gain, plus the applicable surcharge and cess. Without a lower-deduction certificate (the seller can apply for one in Form 128), tax is usually deducted on the full sale price.
  • Keep the seller's PAN, the sale deed and the stamp duty value together with the Form 141 acknowledgement.

Sources

This update is for general information only and does not constitute professional advice. Please consult a qualified professional before acting on it.

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