Key takeaways
- Notification 121/2026, dated 22 September 2026, amends the Income-tax Rules and applies from 1 October 2026.
- Resident individuals and HUFs buying property from a non-resident can deposit and report TDS with their PAN, using Form 141. They no longer need a TAN just for this.
- Form 141 has a new Schedule E that captures the property, the buyer and seller, the non-resident’s tax details and the TDS.
- The obligation to deduct TDS at the applicable rate is unchanged.
Selling property in India as an NRI means the buyer must deduct TDS before paying you. On 22 September 2026 the CBDT notified Income-tax (Fifth Amendment) Rules, 2026 (Notification 121/2026), which changes the forms used to report that TDS. The changes apply from 1 October 2026.
What changed for NRI property sales
- Form 132 now has an option for the transfer of immovable property by a non-resident to a resident individual or HUF.
- Form 141 has an updated heading and Part A, and a new Schedule E in Part B for these transactions.
- A resident individual or HUF buying from a non-resident does not need a TAN solely for this purchase. TDS is deposited and reported using the buyer’s PAN through Form 141.
- Where there is more than one buyer, each buyer files a separate Form 141.
What Schedule E asks for
Schedule E collects the details that the tax department will match to the sale.
- The property: address, type, agreement and registration dates, stamp duty value and total consideration.
- Buyer and seller: PAN, names, the seller’s status and each person’s share of the consideration.
- The non-resident seller’s overseas address and contact details, tax residency certificate and foreign tax identification number.
- The transaction: lump sum or instalments, the type of capital gain, and any lower or nil deduction certificate.
- The TDS: amount paid or credited, rate and tax deducted.
Deadlines and what stays the same
The buyer deducts TDS at the applicable rate, including surcharge and cess, and furnishes Form 141 within 30 days from the end of the month in which the tax was deducted. For payments in instalments, earlier payment and acknowledgement details are reported as well. The rate of deduction itself is not changed by this notification.
Selling property in India from abroad
TDS is only the first step. You will also have capital gains tax to compute, a return to file and, if you want to bring the proceeds overseas, the repatriation rules to follow. We handle the tax computation, the certificate and the remittance together.
Selling property in India as an NRI?
We plan the TDS, the capital gains tax and the repatriation before you sign.
General information only, not advice for your situation. Rules, fees and deadlines change; we confirm what applies at your consultation.
Frequently asked questions
What is Notification 121/2026?
Does the buyer still deduct TDS when buying from an NRI?
Does the buyer need a TAN?
What if there are several buyers?
When must Form 141 be filed?
Can an NRI seller reduce the TDS?
Official sources
- Income Tax Department — latest news (Notification 121/2026)
- TDSMAN — New TDS rules for NRI property transactions, CBDT Notification 121/2026
General information only, current at the date shown. It is not immigration advice for your circumstances. Information on this site is general guidance only and not legal, migration or investment advice. Rules, fees and occupation lists change frequently — always confirm current requirements with the relevant government authority before acting.
Found this useful? Share it
Who will assist you
Sumit Kumar
Chartered Accountant & Australian Registered Migration Agent · MARN 1803385
I migrated from India to Melbourne as a skilled migrant in 2005 and became an Australian citizen in 2010, so I know first-hand what it takes to rebuild a career and a life in a new country — the paperwork and the waiting, and also the job search, the loneliness and the pressure of starting over far from home. Since 2013 I have advised individuals, families and businesses on migration and cross-border moves, combining migration casework with a Chartered Accountant's view of tax, funds and business structure.
