From 1 October 2026, a resident individual or Hindu undivided family buying property from an NRI no longer needs a TAN. They deduct the TDS as before, but report it on their own PAN through Form 141 and its new Schedule E, and give you Form 132. Your tax doesn't change. What does: the buyer now needs your phone number, email and overseas address, so send them with your PAN.
Updated 27 Sep 2026
Updates to this story
- Added: a filed challan-cum-statement can be corrected only on TRACES, not on the e-filing portal (from the Income Tax Department's FAQs on the statement).
What changed
CBDT notified the change on 22 September 2026 as Notification No. 121/2026 (G.S.R. 830(E)), in force from 1 October 2026. Until now, anyone buying property from a non-resident had to register for a TAN, a tax deduction account number, and file a quarterly TDS return, even a family buying one flat. Buying from a resident seller has long had a simpler route on the buyer’s own PAN. The notification opens that route to purchases from NRIs, for resident individual and HUF buyers only. It changes who reports the TDS, and how, not the tax.
- Does the buyer need a TAN?BeforeYes, every buyerFrom 1 October 2026No, if the buyer is a resident individual or HUF
- What the buyer filesBeforeForm 144 (was Form 27Q), a quarterly return on the TANNowForm 141 (was Form 26QB) with Schedule E, one per purchase, on the buyer’s PAN
- When the tax must be depositedBeforeWithin 7 days into the next monthNowWithin 30 days of the end of the month of deduction
- The certificate you receiveBeforeForm 131 (was Form 16A)NowForm 132 (was Form 16B), within 15 days of the statement’s due date
Who it affects, and who it doesn’t
It affects a resident individual or Hindu undivided family buying land, a building or part of one from an NRI, where the buyer deducts the TDS on or after 1 October 2026. Joint buyers each file their own statement for their share; Schedule E has a row for every buyer and seller.
Your own tax as the seller is untouched: the rate, the surcharge and cess, the lower-deduction certificate and the refund through your return all work as before. A company, firm or non-resident buyer stays on the TAN route: the Finance Act, 2026 exempts only a resident individual or HUF buyer from needing a TAN 2025 Act s. 397(1)was s. 203A, and the notification opens the new route to them alone. It’s silent on an individual buyer who already holds a TAN, and on instalments that straddle 1 October; see the questions below.
Worked example
Meera lives in Dubai and is selling her flat in Pune to a resident couple, who pay the price in one go on 20 October 2026. They’re resident individuals, so neither needs a TAN.
- Before the sale, Meera sends her detailsHer PAN, her UAE phone number and email, and her Dubai address, plus the number of her lower-deduction certificate if she has one. Schedule E asks for all of these.
Before the agreement is signed - On payment, each buyer deducts TDS on their shareAt the usual non-resident rate on the price (or the certificate rate), and pays Meera the rest into her NRO account.
- Each buyer files their own statementEach deposits the tax and files Form 141 with Schedule E on their PAN, within 30 days of the end of October, so by the end of November.
End of November 2026 - Meera gets her certificatesEach buyer downloads Form 132 from TRACES and sends it to her within 15 days of that due date.
Mid-December 2026 - Meera checks and claimsShe checks the credit against her PAN in Form 168, then claims it in her return for tax year 2026-27 and gets back anything deducted above her real tax.
What to do now
If you’re the NRI seller
Nothing changes about what you owe. What’s new is what your buyer needs from you, so send it with your PAN before the agreement is signed.
| Done | What | Who | When |
|---|---|---|---|
| Your PAN (or, without one, your tax residency certificate number and foreign tax ID) | You to the buyer | Before the agreement | |
| Your phone number, email and overseas address: required whether or not you have a PAN | You to the buyer | Before the agreement | |
| Your lower-deduction certificate number, if you have one | You to the buyer | Before payment | |
| Form 132 from each buyer | Buyer to you | After they file |
If you’re the resident buyer
Use your own PAN, not a TAN. Deduct the TDS when you pay, then deposit it and file Form 141’s Schedule E within 30 days of the end of that month. Download Form 132 from TRACES and give it to the seller. Buying with someone else? Each of you files a separate statement for your share. Made a mistake after filing? You can’t correct the statement on the e-filing portal; corrections go through TRACES, where you register as a taxpayer first.
As of 27 September 2026, the portal’s help page and user manual for Form 141 still describe only Schedules A to D. Schedule E isn’t there yet, four days before it takes effect. We’ll update this post when it appears.
Common mistakes
- Sending only your PAN. The buyer’s statement also asks for your phone, email and overseas address, and a missing field holds up their filing.
- Assuming the new route lowers the TDS. It doesn’t; only a lower-deduction certificate does that.
- A company or firm buyer dropping its TAN. The new route is for resident individuals and HUFs only.
- Not checking the credit. If the buyer files late or with the wrong PAN, the tax won’t show against yours, and you can’t claim it.
When to get a CA
- Your buyer already holds a TAN, or payments straddle 1 October.
- You have no PAN, or co-own the property with a resident.
- You want a lower-deduction certificate before the sale: apply early, as it takes weeks.
Changed figures
| Figure | Value | Source |
|---|---|---|
| PAN-based challan-cum-statement for property TDS (was 26QB); from 1 Oct 2026 also for purchases from NRIs by resident individuals/HUFs | Form 141 | CBDT Notification 121/2026 (G.S.R. 830(E)), Form 141 Schedule E |
| Deadline for a resident individual/HUF buyer to deposit TDS on property bought from an NRI and file the challan-cum-statement, counted from the end of the month of deduction | 30 days | CBDT Notification 121/2026 (G.S.R. 830(E)), 22 Sep 2026, inserting clause (e) into rules 218(3) and 219(5) of the Income-tax Rules 2026 |
| Days after the challan-cum-statement's due date by which the buyer must issue the TDS certificate to the seller | 15 days | Income-tax Rules 2026, rule 215(1) Table Sl. 3 (Form No. 132 "within fifteen days from the due date for furnishing challan cum statement in Form No. 141") |
Figures for tax year 2026-27, checked 27 September 2026.
Guides we've updated
- Property in India for NRIs: buying, renting, selling and inheriting
- Selling property in India as an NRI: tax, TDS and getting the money out
- The lower-deduction certificate for NRI property sellers: how to get the buyer's TDS cut
- TDS on property sale calculator for NRI sellers
Questions people ask
Does this change how much TDS my buyer deducts?
No. The rate, the surcharge and cess, and the rule that TDS is worked out on the whole price rather than your gain are all unchanged. Only the reporting changes. If you want less deducted, the route is still a lower-deduction certificate before the sale, and your buyer quotes its number in Schedule E.
My buyer already has a TAN from their business. Which route do they use?
The notification doesn't say. It adds the PAN-based route for resident individuals and HUFs but is silent on a buyer who already holds a TAN. Until CBDT clarifies, your buyer should ask their CA before filing, and you should ask which certificate you'll get, so you know what to look for in your annual tax statement.
We signed before 1 October and the buyer pays in instalments. What happens?
The new route applies to deductions the buyer makes from 1 October 2026. Schedule E handles instalments and asks for the acknowledgement number of the previous one, but the notification has no transition rule for an earlier instalment reported the old way. If your payments straddle the date, the buyer should get a CA's view before filing the next one.
I don't have a PAN. Can my buyer still use the new route?
Yes. Schedule E asks for your contact details in every case and, where you have no PAN, your tax residency certificate number and your foreign tax identification number. Without a PAN the buyer may have to deduct at a higher rate, so getting a PAN before the sale is usually worth it.
Sources
- CBDT Notification No. 121/2026, G.S.R. 830(E), 22 September 2026: Income-tax (Fifth Amendment) Rules, 2026 — new Schedule E in Form No. 141, amended Form No. 132, and rules 215, 218(3), 219(5)incometax.gov.in
- Income-tax Act, 2025: s. 397(1)(c)(iii) (TAN exemption), s. 393(2) Table Sl. 17 (TDS on payments to a non-resident)egazette.gov.in
- Income Tax Department: Form 141 FAQs (corrections only through TRACES; one form per deductor)incometax.gov.in
- Income Tax Department: Form No. 141 challan-cum-statement, e-filing help page (checked 27 September 2026)incometax.gov.in
Update log
- First version, written from CBDT Notification No. 121/2026 (G.S.R. 830(E)).
- Added: a filed challan-cum-statement can be corrected only on TRACES, not on the e-filing portal (from the Income Tax Department's FAQs on the statement).