Buying Property from NRI: Form 141, No TAN from 1 Oct 2026

From 1 October 2026, a resident individual or HUF buying immovable property from a non-resident gets a simpler TDS reporting route: the buyer can use the PAN-based Form 141 challan-cum-statement mechanism instead of obtaining a separate TAN solely for this transaction.

What changed?

CBDT Notification No. 121/2026 dated 22 September 2026 amends the Income-tax Rules, 2026 and adds a new Schedule E to Form 141 for transactions covered by section 393(2) of the Income-tax Act, 2025. The change takes effect on 1 October 2026.

What did not change?

The simplification is about the compliance mechanism. It should not be read as a reduction in the underlying TDS liability or as the resident-seller 1% rule automatically applying to a non-resident seller. The seller's residential status must be identified correctly before determining the deduction.

Old route vs new route

Why this small rule change matters

A one-time home buyer may no longer need to obtain and maintain a TAN merely for this purchase. That reduces onboarding friction, but it also makes correct seller-residency classification, deduction calculation, property details and filing evidence more important.

Buyer checklist

1. Confirm whether the seller is resident or non-resident for tax purposes.
2. Check whether the payment falls on or after 1 October 2026.
3. Determine the correct TDS amount; do not mechanically use the resident-property rate.
4. Collect PAN and prescribed seller/property details.
5. Use the Form 141 route applicable to the transaction.
6. Save the challan-cum-statement acknowledgement and issue the applicable TDS certificate.
7. For uncertainty about taxable amount/rate, examine the lower/nil deduction certificate route before payment.

Official source

Income Tax Department Form 141 guidance: Form 141 Help Centre. Also verify Notification No. 121/2026 and the live e-Filing portal before acting.

Last reviewed: 26 September 2026.