Buying property from an NRI will now be easier: Rules changing from October.

From October 1, 2026, buying immovable property from an NRI will become simpler in terms of the TDS filing process. Under the revised income tax rules, resident individual buyers and Hindu Undivided Families (HUFs) will no longer need to obtain a separate TAN (Tax Deduction and Collection Account Number) for this purpose.

Instead, buyers can use their PAN (Permanent Account Number) to deduct and deposit the applicable TDS and report the transaction through the prescribed online process.

TDS Rules Will Still Apply

The change does not mean that TDS on property purchases from NRIs has been removed. Buyers will still be required to calculate the applicable TDS, deduct it at the required stage and deposit it with the government.

The main change is in the procedure used for reporting and paying the TDS, which is expected to reduce some of the paperwork involved in such property transactions.

Three Key Changes from October 1

The Central Board of Direct Taxes (CBDT) issued a notification on September 22, 2026, approving the Income-tax (Fifth Amendment) Rules, 2026, which will take effect from October 1.

One of the changes provides for reporting TDS under the relevant provision through a challan-cum-statement, allowing the tax payment and transaction reporting to be completed through a single online process.

A new Schedule E has also been added to Form 141 for reporting TDS on consideration paid for certain immovable property transfers covered under the new provisions. Form 141 replaces the earlier Form 26QB under the new income tax framework.

The relevant transaction has also been incorporated into Form 132, the certificate issued to the seller. Since the revised Form 141 process is based on the buyer`s PAN, a separate TAN is no longer required for the specified transaction.